Off-peak, on strategy: How to drive revenue when demand dips

Article by IDeaS

Caravan holiday parks have long been synonymous with peak-season escapes – from sun-soaked holidays to long weekends and packed-out school breaks. But when the crowds thin out, the children return to school and demand drops, many operators face the familiar challenge of how to remain busy and profitable even when bookings slow.

The answer lies in strategy, not slashing prices. Too often, parks fall into the trap of heavy discounting during off-peak months, relying on on-site spending to make up the difference. However, this approach can erode perceived value and make it more difficult to raise prices once demand returns.

A more effective long-term solution involves embracing revenue management. This means understanding historical demand patterns, tailoring offerings accordingly, and aligning marketing activity to ensure every dollar spent delivers stronger returns, particularly in quieter periods.

Caravan holiday parks can address lower demand during the off-season by closely analysing past performance, both for the same time last year and more recent trends. Upon examination, historical booking data can be used to identify patterns in guest types, such as retirees, grey nomads, young couples, or remote workers seeking mid-week escapes. With a clearer view of past behaviour, more accurate demand forecasts can be created to guide pricing and inventory strategies, promotional activity, and operational planning. For example, if Tuesdays to Thursdays typically underperform in May, a park might design a targeted campaign around mid-week stays, with value-added offers tailored to couples or digital nomads who appreciate quieter surroundings and reliable Wi-Fi.

When it comes to incentives, specificity is essential. What motivates one group of guests to book may be entirely different to the next. Promotions should be crafted with clear audience segments in mind, factoring in lead time, preferred booking channels, and geographic origin. The factors influencing a school holidaying family differ markedly from those driving a retired couple seeking a peaceful retreat. A digital marketing campaign may appeal more to last-minute, direct bookings, while an OTA-focused offer could be better suited to early planners booking extended stays.

It’s important to recognise that success isn’t just about price, it’s about perceived value.

Rather than cutting nightly rates, parks can add value in ways that resonate with target audiences. Free bike hire, late check-outs, firewood bundles, or discounted local experiences can all enhance appeal without damaging revenue.

Once a low-season campaign has run its course, it is essential to conduct a thorough evaluation to assess return on investment. Tracking performance and maintaining records of all promotions will support planning and refinement for the following year’s off-peak period.

Beyond demand generation, quieter periods also present opportunities to better manage operational costs. When used to its full potential, revenue management technology can enhance efficiency across an entire park. Advanced forecasting systems provide powerful insights into expected business levels, which can support better planning and resourcing decisions. For instance, if lower occupancy is forecast, the park can avoid overstaffing and reduce unnecessary wage expenditure. This principle can be applied across maintenance, staffing, and inventory planning, resulting in improved efficiency and a stronger bottom line.

Caravan parks preparing for a low season, or navigating softer booking conditions, must adopt a smarter approach to pricing, incentives, and campaign design. Parks that closely monitor historical patterns, build accurate forecasts, and develop tailored campaigns for specific audiences will be best positioned to succeed when demand is down.

For more information on how your caravan holiday park can maximise revenues in periods of lower demand CLICK HERE

This content was provided by IDeaS as part of its partnership with Caravan Industry Association of Australia. It does not reflect the views or opinions of Caravan Industry Association of Australia. References to products, services and claims made in this article should not be viewed as endorsements from Caravan Industry Association of Australia.