Blue Sky clear about the way ahead to profits

But although caravan sales have declined, savvy entrepreneurs have found new ways to boost business.

Wakefield-based Blue Sky Resorts, which was launched in 2004, has carved a niche for itself in the weekend break market, buying holiday parks in non-tourist locations close to cities.

It operates four of its own parks – two in Yorkshire and two in Northumberland – and operates 22 others around the country in partnership with their owners.

Mark Alston, joint managing director, said: "Our first park was in Wakefield and the competition to buy it wasn't that strong because people didn't recognise the potential.

"Our model is to offer a weekend retreat for people who live in city areas that is only 10 minutes from home and you can be there straight after work."

The company employs almost 50 staff and turnover for 2010 is projected to be 3.5m – 20 per cent higher than last year - which is due to its touring and holiday provision.

The company has added four new parks to its portfolio in the last year, including Spring Willows, which it leases on the outskirts of Scarborough.

The other three parks are partnerships and there are two more partnerships pending.

Mr Alston said: "Our turnover has increased because we have pushed forward and increased the size of our business irrespective of what's happening in the economy.

"Perhaps you could say we've been a bit too risk-taking but if we hadn't increased the size of the business it would have shrunk in 2008 and early 2009 and we would maybe be back in growth at the moment."

He added: "We're not looking to own 50 of our own parks but there's nothing to stop us helping 50 independent operators and therefore build the same synergies as one of the big operators.

"So we could end up being quite big without having the capital investment."

Although UK domestic holidays have risen over the last two years, like other caravan park operators, Blue Sky Resorts has seen a fall in caravan sales.

Mr Alston said: "Caravan sales, which is the main driver of all the businesses, has been affected by the recession. But it's been intermittent.

"It seems like there will be some economic, market or political news that hits the streets and suddenly caravan sales stop and then it builds again. However, there's been a steady improvement through this year."

Although the company has continued to grow this year, Mr Alston said the focus over the next 18 months would be on consolidating its operations.

"We made our biggest ever investment in Spring House Country Park in Northumberland 2008 and the recession hit almost as we signed the contract," he said. "As a consequence, we'd increased our debt and our exposure at exactly the wrong time, which was unfortunate for us.

"So it means that our period of consolidation has to be longer than we might have wanted it to be."

The company has so far invested 300,000 in Spring House and predicts it will be up to the five-star standard of its other parks in the next 18 months.

"The quality of caravans has become much more sophisticated over the years," said Mr Alston.

"They are now like city apartments in the forest with washing machines, baths, central heating, double glazing, even walk-in wardrobes."

The environmental aspect of caravans is also becoming an important part of the industry. "We're already there because of our locations," said Mr Alston.

"Many of us are now using alternative fuel sources. I think there's definitely a coming together of the public's requirement for us to become more environmental in our industry. I think that's part of the future attraction."

Operator at premium end of sector

Blue Sky Resorts was founded in 2004 by Mark Alston and Jason Caine to cater for the premium end of the holiday park sector.

After long and successful careers in the holiday park sector the pair branched out on their own and fulfilled a dream by purchasing Nostell Priory Holiday Park in Wakefield and forming their own company.

Mr Alston said: "I sold my house, Jason remortgaged and sold everything, and we put together a paltry sum, which seemed amazing at the time. We went to the bank and they helped us to buy Nostell Priory."

During the first year of business Mr Alston lived in a caravan on the park with wife Vanessa and their daughter.

He describes the first year of the company as "really successful". "We were at the end of the economic cycle so a lot of people wanted to buy caravans," he said.

Mr Alston and Mr Caine invested 250,000 in upgrading the park. "We immediately rushed off to buy our second park – Heathergate in Northumberland," said Mr Alston.

They went on to acquire two more: Spring House Country Park in Northumberland, and Spring Willows Caravan Park near Scarborough as well as run 22 parks on behalf of other operators.