Market overview
Visiting a holiday park, ranging from lodge parks to caravan parks or glamping yurts, is a favoured holiday choice for the UK domestic market. Estimating the market size for UK holiday parks is complex due to overlapping categories. However, Mintel estimates the holiday centres and parks segment revenue to be valued at £3.5bn in 2024 – a 20% growth from pre-pandemic levels. In 2023, there were 4,754 holiday parks and campsites operating in the UK, accounting for 320,901 pitches, with the highest number in South West England. The sector further supports c. 230,000 full time jobs across the UK.
Holiday parks and campsites generated £12.2bn in visitor expenditure between 2022-2023. According to CBRE’s 2025 Consumer Sentiment Survey, 34% of respondents planned to spend their savings on holidays, which was the second most popular response to the survey question. Furthermore, domestic holiday park and camping trips were more frequent than trips abroad. UK spend on domestic holidays has historically increased in times of low economic growth and consumer confidence, supporting the counter-cyclical nature of the sector. Because these holidays are often perceived as a more affordable option, demand for holiday parks remains strong despite economic challenges.
While comprehensive data on the sustainability of holiday parks as an asset class is currently limited, many larger UK operators are demonstrating the benefits of sustainable practices. A survey of 666 holiday park operators by the UK Caravan & Camping Alliance (UKCCA) revealed widespread adoption of sustainable holiday parks initiatives, including:
- Encouraging recycling (97%)
- Energy and water conservation (95%)
- Support for local wildlife (83%)
- Green award schemes (78%)
- Sustainable accommodation (67%)
- Restricting vehicle movement (13%)
This article demonstrates the potential value of such initiatives, which may encourage broader adoption across the sector.
Opportunity to reduce operating costs and environmental impact
Reducing energy, water, and resource consumption lowers costs, offering a financial incentive to adopt sustainable practices. While smaller operators often face capital constraints in implementing sustainability initiatives, there are lower cost upgrades which can improve operational efficiency without requiring major investment. Examples include:
CBRE has observed several independent holiday parks across the UK implementing initiatives such as LED lighting, biomass, smart thermostats, and reduced reliance on chemical products and single-use plastics. These initiatives demonstrate the ability of smaller parks to effectively reduce consumption and operating costs.
Nonetheless, for operators with the capacity to invest, transitioning to renewable energy remains the most impactful long-term strategy. According to the UKCCA’s survey, 44% of holiday parks with 251+ pitches have installed solar panels, 19% use energy-efficient heat pumps, and 59% offer electric vehicle (EV) charging points. Parkdean Resorts’ solar installations at two sites have already delivered a 20% year-on-year reduction in power purchased from the grid, demonstrating the tangible benefits. Most UK holiday parks, excluding the largest corporate, are privately-owned. This ownership structure makes them well-suited to investment in long-term initiatives, as they are not constrained by the need for quick returns often associated with shorter ownership cycles.
These examples highlight the potential for sustainable business practices in holiday parks to create value through reduced energy consumption and costs, providing greater control of overhead expenses and directly improving the bottom line.
Improved customer attraction and retention
Our 2025 Consumer Sentiment Survey found that 26% of UK holiday park visitors choose this option, at least partially, due to its perceived lower environmental impact. In effect, one in four holidaymakers are attracted to holiday parks because of their sustainability credentials and prefer those that demonstrate efforts to reduce environmental impact.
The activities that visitors typically part take in involve nature: walking, cycling, and swimming. The UKCCA reports that 61% of holiday park visitors spend time participating in wildlife/nature activities. Therefore, preserving the natural environment is essential to maintaining the quality of experience holidaymakers expect.
Forest Holidays’ sites are a good example of the benefits of environmental stewardship. They are situated in or near national parks, which attracts visitors, but only if they protect and enhance the woodlands. Their partnership with the Forestry Commission holds them accountable for environmental stewardship, and their sustainability strategy includes:
- Low-impact construction
- Sustainable procurement
- Biodiversity enhancement
- Woodland management
Their model highlights growing consumer demand for more sustainable holidays and how operators can capitalise by enhancing the nature and biodiversity on their sites.
Climate change and environmental regulations and reporting
There are limited reporting requirements in the UK for holiday parks. Only parks with over 500 employees, a turnover of more than £500m, and either have tradable financial securities listed on a UK regulated market or are banking or insurance companies, are required to follow the Task Force on Climate-related Financial Disclosure (TCFD) framework.
However, the UK has committed to reducing its carbon emissions by at least 81% by 2035. This, coupled with increasing climate-related risks, suggests that sustainability regulation will likely increase across the economy. To safeguard their assets, operators can proactively measure their carbon footprint and emissions, and identify future climate-related risks.
Parkdean Resorts has followed the TCFD framework, identifying three key climate risks: flooding, drought, and future regulatory changes. In response, the company has developed a risk mitigation plan that includes emissions measurement and monitoring. Parks located near river valleys or coastal areas are particularly vulnerable to flooding, highlighting the importance of conducting climate risk assessments to inform adaptation strategies and protect asset values. Aligning with frameworks like the TCFD not only supports regulatory preparedness but ensures businesses are more prepared for the risks they face from a changing climate and more appealing to investors with a greater focus on sustainably.
While it is not a legal requirement for owner-occupied buildings (as is the case for many holiday parks) to achieve a minimum Energy Performance Certificate (EPC), it is considered good practice, particularly for central facilities within parks. We are seeing a growing trend in the inclusion of EPC initiatives across parks, especially among larger operators. This can enhance the appeal of a park to informed investors who may be influenced by sustainability credentials and the overall marketability of the park.
For new holiday park developments in the UK, achieving a biodiversity net gain (BNG) of at least 10% is mandatory. If sites are in rural areas, this should be achievable on site. Where land and capital allow, going beyond the minimum 10% and attempting more ambitious biodiversity enhancement could create opportunities to improve customer attraction.
Attracting investment and value add
Investors are facing growing pressure from lenders to demonstrate long-term value creation. In our 2025 European Lender Intentions Survey, 71% of lenders said they would not lend against assets that do not meet sustainability criteria or have a business plan to improve it.
Blackstone’s 2021 acquisition of Bourne Leisure, which includes Haven Holidays, exemplifies an investment in part driven by sustainability potential. Prior to the acquisitions, Blackstone stated that they assess material sustainability factors to identify value-creation opportunities and mitigate risks. Since being acquired, Haven has committed to a 15% annual reduction in carbon emissions, in line with Blackstone’s Emissions Reduction Program. They have invested £18m into solar and energy efficiency upgrades across 39 of 41 parks – generating enough energy to power over 8,000 homes and covering approximately 10% of Haven’s energy needs. Blackstone attributes the upgrades to future-proofing the business and responding to growing consumer demand. The availability of land across Haven sites likely contributed to their suitability for renewable energy deployment. In 2022, Blackstone announced plans to invest approximately $100bn in energy transition and climate solutions over the next decade.
There are benefits to sustainability for operators
Stakeholders, including private equity, shareholders, and lenders, are increasingly driving operators to improve their sustainability credentials. To achieve these objectives, we have observed the deployment of sustainability-linked financing, such as green bonds and credit facilities.
This can make a property more efficient, profitable and consequently marketable and cost reductions can have a direct impact on value. The introduction of initiatives such as a combined heat and power plant, solar panels or the Smart Export Guarantee (SEG) where renewable energy is sold back to the grid, can positively impact EBITDA through control and reduction of variable costs which can lead to improved capital values. Julian Such, Operational Real Estate Director, UK Valuation & Advisory Services
The evidence from several operators demonstrates that sustainability initiatives in the holiday parks sector can deliver operational and commercial benefits. As the industry continues to evolve, we expect to see more operators adopting sustainable business practices to reduce their environmental impact, future-proof assets, and enhance competitiveness.
Enhance your Holiday Park portfolio for sustained growth. We offer tailored solutions for investors and occupiers, focused on long-term value. Contact us to discuss how we can help you achieve your goals.
Tasos Vezyridis
Head of Research, UK&I and Continental Europe
CBRE Hotels
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