Opening a motorhome site in 2026: revenue, costs and profitability

30 pitches, 55% average occupancy, £18 a night. The result? More than £108,000 a year in turnover from overnight stays alone.

It isn't a dream: it's the maths of a well-located, well-run motorhome site. But between that turnover and your operating margin lies a whole series of decisions.

In this guide I'll show you the numbers, the variables that make the difference, and what it takes to turn a piece of land into a profitable business in 2026.

The UK motorhome market: the figures that matter

Before talking about investment, let's talk about demand. Without demand, there's no business.

Touring holidays in the UK remain strong:

• Around 16,700 new motorhomes registered in the UK in 2025, up about 1.3% on 2024, according to European Caravan Federation figures reported by RV PRO. That's on top of a large and active used market.
• £12.2 billion a year in visitor spending linked to holiday parks and campsites, with around 226,745 full-time jobs supported, according to the UK Caravan & Camping Alliance's 2024 Pitching the Value report (National Caravan Council). The same research found these visitors stay longer and spend more than the average tourist.
• Councils are testing paid overnight stopovers. Moray Council is running a pilot in Burghead from April to November 2026 (Moray Council), after a public consultation that showed strong support for designated overnight parking. Pembrokeshire has launched a two-year trial at Goodwick Moor, near the Fishguard ferry terminal (Pembrokeshire Herald). Demand for places to stop is clearly there, and so is the debate about where motorhomes should stay.

In other words: demand exists and it's holding up. But that doesn't mean any motorhome site will make money. We look at the market in more depth in The motorhome boom in the UK: what it means for site owners.

The 5 levers that decide your margin

Sites in average locations can out-earn sites in tourist hotspots. Why? Management. Here's what really makes the difference:

1. Location (the variable you can't change)

Coast, lakes, national parks, historic towns, long-distance walking and cycling routes, ferry ports, scenic driving routes like the NC500. In these settings occupancy "takes care of itself". In through-routes or places without attractions, you need more marketing, more services and competitive prices to fill up.

2. Services that raise the average spend

Not all services are equal. Some justify higher prices, others bring in recurring extra income:

• Electric hook-up (metered or flat rate)
• Fresh water and waste disposal
• Wi-Fi
• Washing machine/tumble dryer (high margin)
• E-bike hire or deals with local cycle hire businesses
• Vending, a small shop, a shuttle, deals with local pubs and attractions

3. Occupancy (the seasonality challenge)

In high season many sites run above 80% occupancy. But the annual average can collapse if you don't work the low season, and in much of the UK winter is quiet: many sites close for part of it. This is where the real difference lies: extending the season = stabilising profits.

4. Cost structure (more automation = more margin)

The costs that eat into your margin are always the same:

• Staff: check-in, taking payments, answering enquiries
• Utilities: electricity and water (especially with "all-inclusive" prices)
• Maintenance and cleaning
• Fees: payments, booking channels, marketing

Removing operational friction isn't just "nice to have": it's turnover you keep.

5. Average price per night (ADR)

UK prices cover a wide range, depending on what you offer:

• Council overnight stopovers with few or no facilities sit at the bottom: Moray asks for £7 a night at its Burghead pilot (paid via PayByPhone, self-contained vehicles only, no water or waste facilities on site), while Pembrokeshire charges £10 a night at Goodwick Moor, one night maximum.
• Full-service campsites sit at the top. Swift Group's guide puts a motorhome pitch with hook-up at typically £30 to £45 a night across the UK (Swift Group). For a concrete example, the council-owned Lee Valley Campsite charges a minimum pitch fee for two adults of £19.50 in low season, £24.50 in mid season and £32.50 in high season, plus £7.75 for a service pitch (Lee Valley).

A motorhome site or aire with good services usually positions itself between the two. What you can charge depends on:

• Area and direct competition (including cheap council stopovers and pub stopovers nearby)
• Services included in the price
• Perceived quality: fencing, lighting, cleanliness, signage, online reviews

How much you can earn: 3 realistic scenarios

Basic formula:

Pitch revenue = (no. of pitches) × (average occupancy) × 365 × (average price/night)

Then add your extra income (laundry, e-bikes, vending, late check-out, etc.).

Classic example: 30 pitches × 55% occupancy × £18/night = ~£108,400/year (overnight stays only).

These are simulations, not promises: replace every figure with your own (prices at nearby sites, real occupancy of the competition, the services you offer, how many months you open). And remember that if you're VAT-registered, these figures include VAT: with the standard rate at 20%, one sixth of a VAT-inclusive price goes to HMRC.

Operating margins: how much do you keep?

Your margin depends mainly on:

• How many staff you need
• The cost of utilities
• A mortgage or rent on the land
• How much you sell in extra services

Example: in the Base scenario (around £113,300 in turnover), if you achieve a 25% operating margin, that leaves roughly £28,300 in operating profit a year. With lots of staff, or badly calculated "all-inclusive" prices, that percentage can drop a long way.

Initial investment: the main items

The investment varies enormously depending on the land and the works needed. The usual items are:

• Electric hook-up bollards (paid or included in the price)
• A service point for fresh water, grey water and chemical toilet disposal (an Elsan point)
• Prefabricated toilet and shower blocks, if you offer them
• Other: fencing, lighting, CCTV, hardstanding and drainage, signage, barrier, design work, planning and licence applications

You'll find the item-by-item breakdown in Motorhome site costs and infrastructure.

Permissions: planning permission and a site licence

In the UK, a site where motorhomes stay overnight is, legally, a caravan site: the Caravan Sites and Control of Development Act 1960 defines a caravan as including "any motor vehicle so designed or adapted" for human habitation (section 29). In general that means two separate things:

• Planning permission for using the land as a caravan site, from your local planning authority.
• A caravan site licence from your local council. In England, Wales and Scotland it's an offence to let land be used as a caravan site without one (section 1), and the council can only issue the licence once you have planning permission (section 3). Northern Ireland has its own law, the Caravans Act (Northern Ireland) 1963, with the same basic requirement.

There are exemptions, listed in Schedule 1 of the 1960 Act: for example, small sites of no more than five caravans certificated by an exempted organisation (the Caravan and Motorhome Club's CLs and the Camping and Caravanning Club's CSs work this way), or holdings of at least five acres used by no more than three caravans for no more than 28 days a year. They're designed for small, low-key sites, not for a 30-pitch commercial business.

Planning is devolved, so England, Wales, Scotland and Northern Ireland each have their own planning rules, and councils attach their own conditions to site licences (spacing, fire safety, facilities). The first step is always a conversation with your council's planning and licensing teams. We've brought the rules together in Motorhome site regulations in the UK.

In other words: in 2026 motorhomers expect a simple, quick experience: book on their phone, pay and drive in without waiting for anyone.

7 strategies to earn money in the low season too

1. Dynamic pricing: weekends and bank holidays ≠ a Tuesday in November
2. Packages: 2 nights + shuttle, 3 nights + e-bike
3. Local partnerships: spas, museums, distilleries and breweries, beaches, walking routes
4. High-margin extras: laundry, vending, late check-out
5. A well-kept Google Business Profile: professional photos, replies to reviews, complete information (in several languages, for visitors coming over on the ferry)
6. Friction-free stays: book → pay → drive in (no queues)
7. Real automation: fewer permanent staff = stable costs all year round

Tax note: talk to your accountant before you open

How the site is taxed depends on how you set it up: as a sole trader, a partnership or a limited company. If your taxable turnover goes over the VAT registration threshold, currently £90,000 (GOV.UK), you have to register for VAT, and HMRC treats pitches and holiday accommodation as standard-rated (VAT Notice 709/3). Business rates, insurance and how you treat electricity and extras also matter. Go through all of this with your accountant before you set your prices.

Frequently asked questions

How much does it cost to open a motorhome site?

It depends mainly on the land and the works needed: a basic site with a service point and electric hook-ups is a very different project from a full site with toilet blocks, a shop and premium services. The main items are preparing the land and drainage, electric hook-ups, the service point, fencing, lighting and the management system.

How much can you earn from a motorhome site?

With typical UK prices, 20-30 pitches and average occupancy of 35-60%, turnover in our scenarios ranges from around £42,000 to around £230,000 a year. What you keep depends on automation and your cost structure.

What permissions do I need to open a motorhome site?

In general, planning permission for use of the land as a caravan site and a caravan site licence from your council (under the 1960 Act in England, Wales and Scotland, and the Caravans Act (Northern Ireland) 1963 in Northern Ireland). Some very small sites are exempt from the licence, for example those certificated by the Caravan and Motorhome Club or the Camping and Caravanning Club for up to five units. Rules and licence conditions vary between the four nations and between councils, so start by speaking to your local planning authority.

Is it worth automating a motorhome site?

Yes. Automation cuts staff costs (the biggest item), removes queues at the entrance, allows bookings 24/7, makes record-keeping easier and improves the guest experience.

How long does it take to recover the investment?

Divide your initial investment by the annual operating profit you expect: with the scenarios above you can work it out in a minute. A good location, prices above the local average and a high margin thanks to automation shorten the payback period considerably.

Conclusion: the deciding factor

A motorhome site in 2026 can be a very profitable investment. But the winners are those who:

• Have a strong location (or a clear strategy for attracting guests in the low season)
• Sell extra services intelligently
• Cut costs and friction with automation and fast payments