Dirigentes Magazine, July/August 2024 Edition.
Fernando Clariana, CEO of Branch Out Glamping, explains in an interview for Dirigentes, the potential of glamping, an accommodation concept that has gained exponential popularity in recent years. It develops the journey of the company, which started from a project that began in 2012, that gave them the beginning of the success that the business reaps today.
*This article has been translated into English
What was the objective of Branch Out Glamping when it was created?
Our project was born in 2012 when David Troya, our president and founder, launched www.glampinghub.com, the leading portal for unique nature-based accommodations. To put things in perspective, the term "Glamping" was officially added to the Oxford dictionary in 2016. Over the years, we have gained valuable insights into what clients seek and what makes properties thrive.
Recognizing the growing demand and the fragmented supply in the market, we sold the marketplace over a year ago and pivoted to our current model. Today, Branch Out Glamping is a leader in curating properties and partnering with them, co-investing to offer high-quality accommodations and experiences with a strong potential for success.
What is the concept of your glamping sites? What differentiates you from your competitors?
The glamping wave is massive and appeals to a broad audience. Our primary differentiator lies in our experience as the leading glamping marketplace for 10 years, which provides us with a unique competitive edge. Unlike others who offer services, franchises, or consulting, we do not charge property owners. Instead, if we find a property and owner that align with our vision, we co-invest and supply the optimal equipment.
Additionally, we attract customers through major platforms like Airbnb and Booking.com, and we only charge based on success, operating on a "revenue share" model. This comprehensive 360° approach is unmatched, as no one else possesses the data and expertise we have accumulated, enabling us to ensure success in this emerging industry.
What evolution has the company experienced?
We began with a few pilot projects in 2023, testing and refining our theory. Since then, we've experienced strong, consistent growth, surpassing the previous year's results every single month. In March alone, we managed to multiply our sales by 5x. By the end of the year, we expect to have between 80 and 100 structures deployed, and we're currently signing contracts that will more than double that number by 2025.
What markets do you operate in?
Currently, we operate exclusively in North America. Given the market size and cultural fit, our focus remains there. However, we remain open to exploring opportunities in other regions in the future.
Do you think this type of accommodation is on the rise?
Definitely. New generations increasingly prefer experiences over traditional accommodations, and that's exactly what we provide. The data backs this up: the market is clearly expanding. According to the American Glamping Association, which we founded, and other industry sources, the sector is expected to triple in size over the next 10 years.
What are the main challenges facing the company?
Our primary challenges are finding the right partners, as they are essential for maintaining quality and upholding our brand, and securing the necessary financing to support our growth and equipment acquisition. Quality partnerships and adequate financing are crucial to our long-term success, especially in an industry where reputation is key.
What type of investor is Branch Out Glamping targeting?
I think that anyone with interest or knowledge of the hospitality/experience world can quickly understand the value we bring and, most importantly, the size of the wave that is coming. But we have everything from funds to small business angels, through some renowned figures in the hotel and travel world.
What evolution do you expect for the medium term?
In the medium term, we hope to continue growing with quality, maintaining our spectacular reviews (4.8+ on Airbnb ) and expanding to new states with increasingly professional partners. In the long term, we aspire for our brand to be globally recognized in glamping, similar to how big names are recognized in the hotel industry.
