The fees charged by caravan parks has long been a bone of contention among some grey nomads … but the ‘dynamic pricing’ concept could be about to take budgeting headaches to a whole new level.
Just as rideshare services like Uber employ ‘surge pricing’ whereby customers pay more during busy periods, it seems that the caravan park industry could be starting to look at a similar model.
At a meeting tomorrow night, Shellharbour Council in New South Wales is to discuss a proposal from the NRMA – which manages the Shellharbour Beachside Holiday Park – to introduce ‘dynamic pricing’.
If councillors like the idea, it will mean that visitors to the van park could end up paying more during busy times.
“The use of dynamic pricing is common practice in a range of industries, including hotels and tourist parks, hospitality, travel, entertainment and retail,” the council business paper states.
The Illawarra Mercury reports that once the occupancy rate gets beyond a set level – 60% in the business papers – it means the prices for any remaining accommodation increases.
The fewer spaces available, the higher the price goes.
The business paper said rates on spaces will go up by 15% when occupancy levels exceeds 60% and is expected to bring in an extra $118,000 a year.
While grey nomads have grown used to the idea of paying a higher fees at some parks during peak season such as Easter and Christmas, this ‘dynamic’ element could add a new air of financial uncertainty when arriving at a caravan park at all times of the year.
It is not believed, however, that the ‘dynamic pricing’ proposal works in reverse. That is grey nomads arriving at a caravan park where occupancy is less than say 20% can probably safely expect not to get a huge reduction in fees.
They already charge extra that’s why it.s called off peak shoulder and peak . they are just getting even more greedy
They seem to be doing more so now thats for sure
It will simply mean we will look ahead and book according to pricing. Most Grey Nomads follow a budget when travelling and those Parks that introduce this type of fee will lose their business.
Sad but true.. More free camping for us as we head out on the big lap.
So what’s new they have been doing this for years especially school holidays even if you don’t have kids you have to pay extra and for long weekends. I don’t mind paying my way but keep it a reasonable price and we will keep supporting the park’s otherwise we look for cheaper alternatives such as free and freedom camping and farm stay etc.
Phil you are right in WA it’s nothing for some parks to up the price by 20 dollars on school holidays public holidays and long weekends
We live in Busselton Fred and yes the rates do go up for January, LWE , Easter etc but are very affordable in the winter months, sorry I forgot, nobody wants to come down here when its cold and raining, only want to come down when its warm. They have to make a quid. We owned a small motel for a few years here in Busselton and believe me, its not all roses and chocolates. If we had 3 times the accommodation we could have sold it in summer but it stands empty for 6 or so months of the year. Where does the money come from? Raising the price in the good months.
Great idea – farm stays could be a better option.
True but as Grey Nomads , we check prices if too high or caravan park have the the price during peak or school holidays, we bye pass and find a lovely free camp till prices go back to normal,caravan parks are only doing there self out of business when there is no holidays
So for us check caravan prices first too High find a lovely free camp and there are plenty of those
Rest my case
More of us will just free camp. We have worked all our lives to do the great Australian lap which for many now will mean free camping.
Agree Gail, and loving it 🙂
Set up for free camping, so thats what we will be doing.
What will happen when the travellers who have bought vans because of covid head back overseas … dynamic pricing? or price gouging.. guess more free camping for us.. we are set up for it and many more will follow suit no doubt.
This practice is already happening in most chain parks , we had a stay in a mid nsw Park last year, we arrived on a Thursday and paid $27, the following Monday it was $92, when queried we were told it was school holidays, not in nsw but in qld! As if Queenslanders are going to leave home to stay in mid nsw enmass !
On a slightly different note but equally as “money grabbing”, we stayed at a caravan park in Coober Pedy with friends we were travelling with and took a couple of sites towards the back of the park as we were told they were slightly larger and would make it easier to pull out our awnings as well as park the vehicles. Decided we would put the awnings up in the morning as we wanted to head out to the “Break Aways” to watch the sunset. When we returned a couple of hours later, there were people setting up camp on each of our sites, to the point where if our friends weren’t careful they would trip over the guy ropes of there “new neighbours” when entering or exiting their van. We both complained to the management and the extra campers were moved. Next day, after doing the “touristy” thing around the town we returned in mid afternoon to find two guys on motor cycles setting up camp, but we were leaving the next morning and the “bikers” didn’t take up too much room as did the previous campers so we told them to stay but we did again let management know that we were “less than impressed”,
We also complained to the head office of this particular caravan parks “chain”, but as far as we know, nothing was done and a letter from the caravan park a few weeks later informed us that for them it was “common practice” during peak times. Well, not for us and we won’t be visiting that park again.
Cheers Sundy.
Don’t understand what the difference will be between what they are already doing with Peak, Shoulder & Off Peak as well as absolutely exorbitant prices anywhere near water in summer & school holidays.
I free camp as much as I can & use showgrounds & small family owned caravan parks where possible.
will that cut both ways . When they have 50% or less they offer 15% discount and if almost empty or empty they pay us
A few years ago we were at Coffs, wanted a site for 1 night (Friday) only while transiting, the park operator /manager could not be contacted by phone until we got to the empty office, there were only a few caravans to be seen in the park, when asked about 1 night stay were were asked to leave as they said we had to take 3 days and only pay for two or none at all, I asked if he was busy and he said no, very quiet.
I don’t care what the general rules are there but his arrogance and manners were an indication of the lack of customers.
We were welcomed with open arms at another site and even offered a discount on our way back when we stayed an extra night when we had more time.
A similar thing happened at Lakes entrance VIc 18 months ago.
We rarely free camp because of equipment but if we get stuffed around 1 or 2 nights free camp can be a regular thing.
If you are not fully self contained tell no one, keep your camp clean and tidy, don’t over stay, use parks as well if they are friendly and cheap.
Have fun.
I would be pissed off if I had to pay a lot more for a site than someone else with the same site. Everyone should pay the same or else it isn’t fair. The whole idea is a joke. Who the hell thinks these things up.
In the end caravan parks will only be for families – the rest of us will use wiki camps and camp at camp sites.
Pure greed. At Reflections, Seal Rocks, I was going to becharged $100 anight for a powered site, simply because it was the last site available. Postponing my visit by a few days meant that I was charged $56pn.