UK Holiday Let Owners Offer Unique Experiences to Boost Profits Amid Rising Costs

Holiday let owners in the UK are increasingly offering unique experiences to guests as a strategy to enhance occupancy rates and profitability. This trend comes as the sector faces rising operational costs, including energy bills and taxes, alongside a competitive market.

Sykes Holiday Cottages reports a 26 percent increase in such additional offerings over the past year. The number of guest nights spent in short-term lets in the UK also saw a 10 percent rise in the year leading up to June 2025 compared to the previous period, indicating sustained demand.

Diversifying Income Streams

Rob and Fiona Cunningham, who operate two holiday lets on Maynard's Farm in Shropshire, offer a butchery course for £150 per person. This experience, which teaches guests how to make sausages and cure meats using locally sourced produce, has helped increase their occupancy by approximately 25 percent and boost profits by up to £10,000 annually. Their luxury retreats, renovated from an old tractor shed, typically rent for between £400 and £800 for five nights during the peak summer season, generating around £50,000 a year. "Locally sourced food is our passion," Rob Cunningham stated, noting that their work with local produce and courses cater to both holidaymakers and those interested in their butchery expertise.

Farm stays, in general, have seen a 16 percent year-on-year increase in popularity. Pam Brown, managing holiday lets at Ilderton Dod Barns in Northumberland National Park, offers stargazing as a key attraction. Situated within an International Dark Sky Park, the location provides exceptionally dark skies ideal for astronomical observation. While the barns sleep up to six and can cost around £1,000 a week in peak season, the unique appeal of stargazing attracts guests beyond those seeking a typical farm break. "Stargazing offers something extra that appeals to many visitors," Brown commented, adding that the farm also offers facilities for guests bringing dogs or horses, and opportunities to observe sheep shearing. These added attractions are estimated to boost bookings by about a third, increasing income by approximately £10,000 annually, with the cottages bringing in £30,000 per year.

Lee Merlin-George has found success with a private skateboard park at her Little Nollie log cabin in Norfolk. Guests have exclusive access to the halfpipe ramp, a feature Lee believes has potentially doubled bookings. The one-bedroom cabin, which accommodates up to three people, charges between £118 and £130 per night and is projected to generate around £20,000 in bookings this year. The ramp, built by her carpenter husband, offers a unique recreational activity that appeals to both novice learners and experienced skateboarders.

Shifting Tax Landscape

These efforts to diversify come at a time when holiday let owners are facing significant changes in tax regulations. The favorable tax treatment previously afforded to furnished holiday lets was abolished in April 2025. This change means that income and capital gains from these properties are now taxed similarly to other rental properties. Owners can no longer claim tax relief on the purchase of items like furniture and fixtures, only on replacement costs. Further tax increases are scheduled from April next year, with an additional two percentage points of income tax being added to profits from property rentals. This will raise the tax rate for basic-rate taxpayers from 20 percent to 22 percent, and for higher-rate taxpayers from 40 percent to 42 percent.