Quite simply, it’s priced at what the market will bear.
There are enough people who will pay the prices they charge for an easy holiday in school holiday times, with everything on site, and which caters to middle class tastes.
Butlin’s can also be expensive in school holidays but gives a different offer. Much is similar and also actually includes many more activities but it differs in several ways. Crucially it is aimed at a different clientele. It targets a more working class market that enjoys evening entertainment, which is a key element of its offering.
Centre Parcs targets families who do t want to mix at the bar or in a. Communal show in the evenings, but to be purely with their family or group in their own accommodation or perhaps in a restaurant. Butlins is a more communal experience with the shows, the bingo, the mass catering dining rooms.
And centre Parcs and Butlins know their target market and what they will pay. The middle classes going to centre Parcs and the more affluent working classes will pay the prices they ask…otherwise the prices would drop to fill the spaces. Because they target families with school children, school holidays are in big demand and so they can charge lots. January term-time breaks are much cheaper because most people who go to Center Parcs can’t go then, plus of course the weather is often poor so it’s less popular.
Will prices return to ore Covid levels? Unlikely whilst foreign travel is difficult and people are desperate to make up for lost holidays over the last couple of years. Demand for Center Oarcs is higher than ever hence rising prices. Perhaps if foreign travel becomes easy and cheap, and lots want to go elsewhere, demand will drop and prices too. However, I wouldn’t hold my breath for this, because foreign travel continues to be less simple and holidays abroad may well be pricey.
It’s the same reasons for why cottages in prime holiday locations in peak season have rocketed.
Personally, I place little value in having everything on one site or only mixing with the middle classes. I’d choose a cottage and not be bothered about having everything within walking distance, and actually prefer to get away, rather than stay in one location, but lots of people like it for the ease and lack of thought and planning that’s required everyday.
If I wanted this kind of holiday, I’d probably go to Butlins or one of the caravan places in Devon. They can offer lots of nice activities and there is always some good accommodation available. But then, having to walk past the few families who like drinking from 10am or some poorly behaved children wouldn’t really put me off, if I thought I was getting a good activity holiday at good value.
It’s true that people pay for the clientele. By paying Center Parc prices, you do get to mix with ‘people like us’ who wear Joules and Boden and make their children eat vegetables and do their nightly reading. Lots of people really only want to mix with people like themselves …and there’s a charge for this. Those who live on universal credit are likely to be priced out of the market. And lots of people would rather not mix with them. Center Oarcs know all this!