Tempted by a different kind of business?

Are you tempted to try something rather different from running your current hotel or Bed and Breakfast (B&B) business? Here we explore a couple of possibilities you may not have considered.

Boats and cruisers

Narrow boats and cruisers are always popular with holidaymakers. VisitBritain has 65 boatyards in its Quality scheme, with over 700 boats. These come in all shapes and sizes – and prices. You can expect to pay £11,000 for an older, second-hand 30ft four-berth narrow boat or up to £45,000 for a 45ft 4-berth. If you choose a brand-new 57ft, wide beam boat with four berths, a luxury kitchen and central heating the price tag is £85,000.

Mooring and costs

However, once you've found your boat, Marilyn Layfield of Freedom Boats on the Macclesfield Canal warns that it is very difficult to find moorings. 'They are like hen's teeth,' she says.

Marilyn and her husband got into boat hire when they bought a weekend boat and started helping out the marine owner, who later sold them the business. They now have moorings, hire boats, a day boat, a trip boat and chandlery. 'More marinas are being built,' Marilyn says, 'but they're upmarket and very expensive, with more facilities – electricity, water and pump-out facilities. People expect that these days – they want boats to be like houses, with dishwashers and everything.'

Once you have found moorings, you must get permission from British Waterways for a hire base and rents can be expensive. A better alternative is to place your boat with a hire company, who will provide the mooring and also let the boat out on your behalf. You should allow for the hire company's fees and other costs including maintenance and repairs – an engine service costs around £100.

You also need to be able to handle the boats yourself, or hire someone who can, and be able to give novice holidaymakers expert tuition, particularly on getting through locks.

Business is seasonal, with locks closed between November and March. 'It is hard work,' say Marilyn, 'but it's very pleasurable.'

Caravans and lodges

In the UK there are around 3,500 holiday parks. Many are family owned and run, and have often been developed from farm properties. Just 3% are controlled by the three largest operators: Haven Holidays, Parkdean Holidays and Park Resorts.

There are around 498,000 touring caravans, 112,000 motor homes and 335,000 caravan holiday homes in the UK. The holiday parks industry currently generates an annual £2.9 billion spend and accounts for 20.5 million trips every year (defined as two nights or more away from home). Most holiday parks are a mix of touring pitches for caravans, motor homes and tents, holiday homes (static caravans or lodges) let out to holidaymakers, and owners' holiday homes.

Forget any preconceptions you may have about caravans. Peter Smith of agents Humberts Leisure says that holiday parks are a much more sophisticated product than they were ten years ago. 'Everyone who visits a holiday park these days is surprised by the high standard of facilities and furnishings,' he says.

The current trend is for upmarket wooden lodges. They are still classified as caravans if they are on a concrete base with no foundations, but they do command higher prices. Lodges are often luxuriously furnished – some even have hot tubs on the veranda. Peter Smith thinks that mixing static caravans and lodges in the same park doesn't work: 'They’re two different markets. Lodges are more about lifestyle, they’re inspirational. And lodges need more space and a different layout.'

Buying your holiday park

Holiday park prices start at about £1 million depending on size and location. Banks will often lend up to 100%, although 60-70% is usual, because holiday park businesses tend to be very strong with excellent returns. Peter Smith also finds banks are very keen to lend on holiday parks, so they tend to be flexible and competitive. He estimates about 200 a year come on the market. 'Some sell immediately, some are sold off market and we offer some on a closed list.'

'They’re a scarce commodity,' says Jon Boston, PR consultant to the British Holiday and Home Parks Association. 'New holiday parks just aren't being created any more. Parks are all full to bursting in the summer, but planners rarely give consent for new ones.'

Peter Smith recommends that buyers do plenty of research and check planning permission and site licences. 'Ask about everything!' he says. 'A new operator will need lots of advice.' Go and see lots of other parks.Talk to experienced operatorsCheck for erosion, contamination and flooding: all three can be expensive to put right.Look for ways to increase trade: through caravan sales and more realistic pitch fees.Find a specialist solicitor for both buying and selling. Get accountancy and tax advice. Jon Boston warns that running a holiday park is not easy. 'You’ll need commitment – you’ll be dealing with customers 24 hours a day,' he says. 'Caravans roll up at 1am and expect to get a pitch. This market expects you to be available all the time.'

Further information

For more information about the various organisations mentioned in this feature visit the following websites: British Waterways: go to www.britishwaterways.co.uk. British Holiday and Home Parks Association: go to www.bhhpa.org.uk.National Caravan Council: go to www.nationalcaravan.co.uk. VisitBritain Quality schemes: for boats go to www.qualityintourism.com/asp/hirecraft; for holiday parks go to www.qualityintourism.com/asp/parks.