1. Market Growth and Demand Drivers in 2024
- Post-COVID Boom Stabilizing: The initial pandemic-induced surge in outdoor travel demand has stabilized, but the demand for outdoor experiences remains strong. The outdoor hospitality sector has retained much of the new customer base it gained during the pandemic as travelers continue to prioritize health-conscious, nature-oriented getaways.
- Sustained Domestic Travel: Even with the return of international travel, domestic tourism remains strong. Rising fuel prices and economic uncertainties have led some consumers to opt for shorter trips closer to home, keeping campgrounds, RV parks, and glamping sites busy.
- Economic Uncertainty’s Impact: With inflation and economic challenges lingering in many regions, travelers are seeking affordable yet enriching experiences, making camping and RVing attractive alternatives to traditional hotels and resorts. Outdoor hospitality provides an experience-driven option at a more cost-effective price point, appealing to budget-conscious consumers.
2. Trends Shaping the Market in 2024
- Glamping’s Continued Rise: Glamping continues to grow as one of the fastest-expanding segments in outdoor hospitality. Luxury and unique accommodations, like safari tents, geodesic domes, and eco-lodges, have become mainstream in the industry. Glamping not only attracts affluent travelers but also appeals to those who want to experience nature without sacrificing comfort. This market has evolved beyond a niche category into a core offering for many hospitality providers.
- Technology-Driven Experiences: In 2024, technology is deeply integrated into outdoor hospitality offerings. The use of AI-powered booking systems, personalization tools, and smart campgrounds is becoming more common. Guests expect seamless experiences, from contactless check-ins to tailored recommendations for activities or dining. Additionally, the “work-from-anywhere” trend continues, and many campsites and glamping locations are upgrading to offer high-speed Wi-Fi and work-friendly environments.
- Sustainability as a Major Driver: Sustainability is a key decision-making factor for travelers in 2024. Outdoor hospitality businesses that adopt eco-friendly practices, such as solar power, water conservation systems, and waste-reduction efforts, are gaining a competitive edge. Many travelers, particularly younger demographics like Millennials and Gen Z, choose eco-conscious accommodations. Certification programs, like Green Key or LEED, and carbon offset initiatives are becoming part of the standard offering for leading brands.
3. Consumer Behavior and Preferences
- Experience-Driven Travel: The desire for unique, immersive experiences remains strong. Travelers in 2024 are increasingly seeking adventure tourism, which may include guided hikes, water sports, wildlife watching, and cultural immersion activities. This trend has led many outdoor hospitality providers to diversify their offerings by adding experience-based packages, such as outdoor yoga retreats, farm-to-table dinners, or eco-tours.
- Blurring Lines Between Work and Leisure: The trend of workcations—where people work remotely while enjoying a travel experience—has persisted into 2024. Outdoor hospitality providers are catering to this trend by offering work-friendly amenities like private cabins with high-speed internet, charging stations, and quiet spaces for virtual meetings. As a result, many travelers now extend their stays from weekends to weeks or even months.
- Families and Multigenerational Travel: Outdoor hospitality providers are also seeing increased interest from families, especially those seeking multigenerational vacations. These families are looking for safe, outdoor, all-inclusive experiences that cater to various age groups. This demand has driven many providers to offer family-friendly activities, such as guided nature tours, children’s programming, and pet-friendly accommodations.
4. Competitive Landscape
- New Entrants and Consolidation: In 2024, the outdoor hospitality industry continues to attract new entrants. Large hospitality brands are expanding into the space by acquiring existing campgrounds and glamping businesses or launching new outdoor-focused brands. At the same time, consolidation is ongoing, with larger players like KOA (Kampgrounds of America) and Hipcamp acquiring smaller operators. This consolidation is driving standardization and professionalism, especially in terms of quality control, customer service, and sustainability practices.
- Partnerships with Lifestyle Brands: Many outdoor hospitality businesses are forging strategic partnerships with lifestyle and outdoor brands (such as Patagonia, REI, or local artisans) to enhance the guest experience. These partnerships often result in exclusive merchandise, gear rental services, or co-branded experiences, making camping more accessible and appealing to a broader audience.
- Differentiation Through Amenities: With growing competition, businesses are differentiating themselves through unique amenities. Some campgrounds now offer spa services, electric vehicle (EV) charging stations, gourmet dining options, and even personal concierge services to set themselves apart in the crowded market.
5. Key Challenges in 2024
- Inflation and Rising Costs: One of the biggest challenges for the industry is rising operational costs, driven by inflation and higher fuel prices. Many outdoor hospitality businesses have had to increase prices, which could limit access for budget-conscious travelers. Balancing cost increases with maintaining accessibility will be critical for the industry’s growth.
- Environmental Regulations: As sustainability becomes more important, outdoor hospitality operators face increased scrutiny from both consumers and regulators. Stricter environmental laws around land use, waste management, and energy consumption are adding to operational complexities. Operators must comply with new regulations while maintaining profitability and continuing to offer a high-quality guest experience.
- Labor Shortages: Like much of the hospitality sector, the outdoor hospitality industry is struggling with labor shortages. Finding skilled staff for campgrounds, resorts, and glamping sites—particularly in remote areas—remains a challenge. Some companies have turned to automation and self-service options to fill the gap.
6. Growth Opportunities in 2024
- International Expansion: While the outdoor hospitality industry in North America and Europe is well-developed, there is still significant growth potential in emerging markets such as Southeast Asia, Latin America, and Africa. As these regions experience increased tourism interest, operators have an opportunity to expand their footprint and offer unique outdoor experiences in these less-explored markets.
- Wellness and Nature Retreats: The intersection of wellness and outdoor hospitality is a growing niche. Wellness tourism, which includes activities like meditation, yoga, spa treatments, and nature therapy, is particularly popular among high-income travelers and is expected to see continued growth in 2024. Outdoor hospitality operators can tap into this demand by offering curated wellness programs.
- Electric Vehicles and Eco-Tourism: The rising adoption of electric vehicles (EVs) presents an opportunity for the outdoor hospitality industry. In 2024, more campgrounds and RV parks are installing EV charging stations, making it easier for eco-conscious travelers to embark on road trips without the carbon footprint of traditional fuel-powered vehicles.
7. Sustainability as a Differentiator
- Circular Economy Practices: Many operators are embracing circular economy principles, focusing on recycling, upcycling, and waste reduction within their operations. For example, some businesses are using reclaimed wood for construction, incorporating rainwater harvesting systems, and implementing composting programs for guests.
- Carbon Offset and Regenerative Tourism: Regenerative tourism, which aims to not just minimize environmental impact but to actively improve local ecosystems, is gaining attention. Some outdoor hospitality providers are now offering carbon offset programs, tree-planting initiatives, or contributing to local conservation efforts as part of their service offerings. Travelers in 2024 are increasingly seeking out businesses that go beyond sustainability to make a positive impact on the environment.
In 2024, the outdoor hospitality industry is well-positioned for continued growth, driven by trends such as increased demand for glamping, sustainability, and technology-driven experiences. However, challenges like rising costs, regulatory pressures, and labor shortages require businesses to be adaptable. Growth opportunities abound in emerging markets, wellness tourism, and eco-friendly innovations, making it a dynamic space with room for innovation and strategic expansion.
