Industry InSites – January 2016

In Case You Missed it…

You may have noticed that my consulting company, David Gorin Associates, has a new name. In late November, I announced that I’d joined forces with Jayne Cohen & associates to create a new, broader company with increased expertise and experience. While we continue to put the pieces together for the new firm, we are moving ahead under a new name. A new company website will be up early in 2016 and both Jayne and I look forward to working with many of our readers in the months and years ahead. Jayne and I can both be reached through our regular phone numbers or through david@davidgorinassociates.con or Jaynelcohen@gmail.com.

Our thanks to all who’ve contacted us in the last month or two wish us well. We appreciate the warm best wishes.

Amazing Things Keep Pumping Up the RV World

Just when you think things couldn’t get much brighter for the RV industry, another bit of outstanding news comes along.
Ford Motor Company announced it is licensing Livin Lite to create a line of Ford-branded camper trailers, camper shells and toy haulers.
Ford-branded slide-in truck campers will be offered for 6- and 8-foot truck beds, while the first camper trailers and toy haulers will be offered in 22- and 24-foot lengths. Additional products, including a longer fifth-wheel trailer and smaller pop-up camper, are also planned.
A Ford executive noted that “Ford is an industry leader in towing technology, so it was only natural for Ford to license its name and designs in this industry.”

Not since the iconic GMC motorhome of the 1970’s has a major auto manufacturer put its name on an RV. With the industry booming with growing sales and increasing interest by many segments of the public, Ford is displaying great confidence in the industry and market by licensing its brand.
Any day now I expect a major hotel brand to make a move into the RV resort and campground business.
Public Parks Upping Their Camping Game
It wasn’t too many years ago that some in the campground industry were living in fear of the expansion of campgrounds and RV parks in local, county, state and national parks. First it was that public parks were underpricing their services making it tough for commercial park owners to compete. Then it was public parks adding electric hookups, bigger RV sites and swimming pools. Then it was the addition and growth of rental cabins. And today, public parks continue to expand, with some now offering seasonal sites, RV storage, activity programs and a variety of recreational activities.
There is no doubt that public parks at all levels are pretty much now in the campground business – the very same business that some 8500 commercial private parks are engaged in. I must admit I’m somewhat surprised that the commercial park industry seems resigned to accept the situation whereas just a few years ago, most of the industry was concerned about the growth of public parks and in some states were aggressively fighting that growth.
I guess it was about 4 years ago that ARVC President Paul Bambei announced that ARVC would welcome national and state parks into the ARVC membership on the same terms as commercial parks. The outcry from the ARVC membership was loud and clear – not going to happen.
Today I only hear silence as we read daily of the expansion and success of state and other public parks. Here are two examples of this growth from just the first week of December 2015 as reported in the RV Daily Report.

Vermont Plans Opening of 17th State Park

State officials have released details on a plan to convert more than 300 acres into Vermont’s 17th state park.

N.Y. State Park Campgrounds Set Record

Attendance at New York State Park campgrounds reported that more than 2 million people have camped at New York’s
66 state npark campgrounds this year, surpassing the previous record set in 2014.

Has the park industry given up protecting its turf? I can’t think of another business segment where government at all levels is in the commercial business to fund a public program like a park and counts on campground and RV business to provide the revenue to keep the parks in business.

Industry InSites – December 2015

I Can’t Help Myself

You know sometimes you run into a person whose name simply personifies who they are? I used to have a pool company that serviced our pool – Mike Pohl’s Pool Service. That kind of thing.

Well, as the RV Dealers recently wrapped up its annual national meeting, it was announced that the new President of the RV Dealers Association is none other than Sam Parks. What a great name. Too bad he isn’t a campground owner with a chain of campgrounds – all of the Sam Parks!

And if I were writing an April Fools column, I would no doubt announce that Paul Bambei has accepted a new position as CEO of the Children’s Book Association or the Deer Hunters of America.

ARVC in General and the OHCE in Particular

It’s now been about 14 years since I left as ARVC’s president. In fact, my campground industry career is now split equally between my years with ARVC and the since then. So I thought I would take a few paragraphs and share some of my observations about the association and the recent national convention in Daytona Beach.

There is no doubt that ARVC is a competently run association providing members with some good values and accomplishments. The music licensing program, the Government Affairs work on the park model from about a year ago, the addition of the western school of RV Park & Campground Management are among the signature accomplishments of the association in the last couple of years.

On the other hand, the membership numbers do not reflect growth. For some reason, ARVC is unable to attract more than about 30% of the commercial parks in the market. Why?

The annual convention is a professionally and smoothly run gathering and Daytona Beach seems to have been a good choice of venue. However, I for one, found the convention simply an ok event. There was no spark, no excitement, nothing that was a “knock me over” event or a “wow” that park owners try to provide for their guests. Given its location within about a day’s drive to a large percentage of ARVC members, the turnout was good but not great.

Next year – Fort Worth, TX. In the heart of a large state that is not an ARVC affiliated state association and is a God-awful drive from outside Texas and a rather unpleasant airline flight to get there – and expensive. And then come Raleigh to be followed by Oklahoma City. I hope that someone comes up with an exciting event that makes coming to these places something to look forward to.

It is interesting to note that the KOA annual system meeting was being held in Daytona about 2 weeks after ARVC and the Yogi Bear Jellystone Park system meetings were the week right after ARVC in Cincinnati. Nothing new about these meetings as they traditionally been held at this time of the year. But now that ARVC has moved its meeting to early November, the obvious conflicts with these two other meets – and with the NY Campground Owners Association meeting – certainly impacts on the ARVC attendance.

A word on the “title sponsor” of the convention – Good Sam. The company and its affiliate Camping World are powerhouses in the industry. And it’s great they offer such strong support to ARVC. They buy the title sponsor position each year offering ARVC a large chunk of cash in return. The company is led by probably one of the most recognizable business names in America today – Marcus Lemonis or as he’s better known now, the Profit. His astounding business success with Good Sam and Camping World indicates that he probably has some words of wisdom that would be of value to the park industry. I would suggest that as a quid pro quo for Good Sam’s title sponsorship of the ARVC convention next year, that Marcus Lemonis should be the convention’s keynote speaker and should spend a day or two with the association members. No Marcus, no title sponsorship. If nothing else, Marcus might engender a bit of excitement into the convention.

(Kind of curious that he’s never partnered with a campground business on his tv show The Profit. I suppose he likes diversification in his investments).

How come board member’s who’ve served their 6 year terms are being recycled back on to the board? I’m not questioning their dedication to the job but in my experience, in an association the size of ARVC, new leadership is important for the growth and direction of the association. If I’m not mistaken, this year, 3 former board members where brought back onto the board.

What’s the story with the Business Forum? This group of power companies and executives is just about unknown to the membership and what they are doing seems to be a secret. They are supposed to be the big companies in the industry and they must have lots to share about their success. How about bringing them out into the open and sharing their expertise with the membership?

And the Awards Program. I suggest that the board consider regionalizing the major park awards so more parks can participate and benefit from being a park of the year. The park of the year awards require far too much in the way of preparation for the submission, but once it’s done, it’s easy to tweak it every year or two and resubmit it. Why not have several parks of the year – North, South, East and West might work, or something like that.

One final thought. In my humble view, the association lacks soul. Warmth. Humor. A touchy feely experience. Not easy to accomplish but it could start with some small group social events at the convention. The convention seems cold and impersonal and it needs to be warmed up a bit. Oglebay and the national school has been somewhat successful in building that soul and warmth. And the 20 Groups I think have had similar success. It can be done. How do you take 600 people in Daytona for 3 days and turn them into a family?

There’s lots of young leadership moving up the ranks. I hope they can figure out how to make the association have a deeper meaning for its members. Strong associations build strong relationships. That’s honestly one of the secrets of success of the state associations. Can ARVC do the same?

Time for ARVC to figure out how to personalize the association, give it heart and soul and not just music licenses and washing machine discounts.

Ok, I’m done. Hope there might be a few useful thoughts in all of this.

Industry InSites – November 2015

Lots of Neat Stuff Going On

It is always interesting to note that a healthy economy and a healthy industry always attracts innovation. So it goes in the RV Park and campground business. As the RV industry continues to expand, as campgrounds see growing occupancies and rising revenues, industry thought leaders are on the cutting edge figuring out how to capitalize on the prosperity and move forward in new directions.

A New Name Enters the Park Business

An old buddy of mine, Ed Mayer, the founder of Elite Resorts with several parks in Florida, is teaming up with Guy Harvey Outposts to create new destination resort on Lake Okeechobee in Florida. Not familiar with Guy Harvey Outposts or Guy Harvey? Guy Harvey is well-known for his dramatic paintings of wild fish and as a conservationist focused on conserving the ocean, lakes and rivers and all species of fish. Guy Harvey Outposts are destination resorts and activity centers for water sport enthusiasts. They are located in Florida, the Bahamas, the Galapagos Islands, Dominica and Panama.

The Guy Harvey Lake Okeechobee Outpost Resort will feature a marina, a resort area and 2 sections for an RV resort. The plan also includes a 75 site park model section and about 130 cottages of varying sizes.

Aside from Disney’s Frontier Campground, I can’t think of another major national hospitality and outdoor adventure brand to put its name on an RV Park and campground business. Congratulations to Ed Mayer and the leadership at Guy Harvey Outposts for introducing such a widely recognized and respected brand to the park industry. Next time you see someone wearing a signature Guy Harvey tee shirt, have a little new respect for the man behind the brand.

CAL ARVC Adds Spanish and Portuguese to Website

In what I believe is a first for a state association on-line directory, the California Association of RV Parks & Campgrounds has added special sections in Spanish and Portuguese to their Camp-California.com on line guide to camping in California.

The new language sections serve several purposes. First and maybe foremost, since many parks now offer cabins and other rental units, the market for occupancy is vastly larger and reaches into new segments of the population. In California, the large Hispanic population is a rapidly growing market for these rental units among a segment of population that may not own an RV.

Secondly, the languages also recognize the growing market from South America, especially Brazil where Portuguese is the language of most of the population. Making the information available on line for both RV renters and road travelers from that very large country is a step in the right direction.

Over the years, I’ve seen some parks publishing rack cards or brochures in French, particularly in Florida where the French Canadian business is substantial, or in French and German in areas like Orlando, Miami, Las Vegas, and similar destinations popular with tourists from those countries who often rent RVs for their US trip.

Depending on your location and your desire to expand your markets, considering multi-lingual brochures or sections on your website may be a good strategy.

Zip Lines, Rope Courses, Climbing Walls…the Next Water Park?

In the last 5 years or so there appears to be a great interest in outdoor adventure attractions – zip lines, rope courses, climbing walls and so forth. At first glance, these attractions seem to a natural for campgrounds – more so then laser tag, water slides, and game rooms. At least they are outside, the participants are active in nature, and anyone can enjoy the experience without any special physical abilities or skill. And, the cost of an adventure layout may be more reasonable then a water park at any level.

So my observation on these adventure attractions.

First, a number of standalone independent businesses offering outdoor adventures have sprung up in tourist areas that lend themselves to these activities. I’ve seen them up and down the east coast mostly in forested areas like Hocking Hills, OH, the Gatlinburg / Pigeon Forge area in Tennessee, the Lookout Mountain area in Georgia and Alabama, and in areas around Vermont, New Hampshire and Maine. Entrepreneurs like campground owners have invested heavily in these stand alone businesses. If there’s an adventure park near your campground, is it wise to offer you own or are you better off cross-promoting with your neighbor who already can serve your customers?
Second beyond the cost of installing the adventure layout, there are many on-going operating expenses that need to be budgeted. Significant staffing may be required in order to properly monitor these activities, inspect and maintain the rides, and assure that people of all ages are safe. And on the regulatory side, in many states even a ropes course is subject to rigid inspection and maintenance standards imposed by the same regulatory agencies that oversee amusement parks. A whole new layer of rules and regs.
Third, park owners are already in a multitude of businesses…the hospitality business, the utility business, the retail business, food service, the entertainment business, the storage business, and who knows what else park owners are doing these days. Have to think carefully before venturing out into another new business.
My bottom line on these activities… I do think these types of amenities will continue to grow, but likely at a cautious slow and steady pace. I would encourage owners to partner with another provider in the area rather take on what is really another business. In my way of looking at these things, water attractions are still the number 1 recreational activity that kids and parents look forward to.

Industry InSites – October 2015

It’s Fall…

And a Happy Halloween to all. As we head into the winter, I thought I’d share some Fall thoughts about the park industry and some things I’m currently involved in that may or may not be of interest.

ARVC Board

Having been associated non-stop with the park industry since 1987, there are very few hats I’ve not worn at one time or another from serving as ARVC’s President to Virginia Campground Associations’ executive director to park owner to consultant to founding Best Parks in America to being ARVC’s lobbyist and Washington Representative. So, it seemed to me it was time to take on some voluntary role with the industry and in September, I threw my hat in the ring for an ARVC board of directors seat representing the Supplier Council.

By the time you read this, my industry political career will either be over or just beginning. With 4 highly qualified candidates running, as in politics generally, the outcome today is certainly uncertain. I hope to have the opportunity to serve on the board and use my experience and industry knowledge to help the association become stronger in the coming years. However it turns out, I’ll still be around and working to strengthen the industry and help clients and friends become even more successful.

Disruptive Technology

Ever hear the term? It’s using technology applications to change (disrupt) the traditional business model in an industry. It’s also sometimes synonyms with the “shared economy” where individuals can share their assets with others to generate revenue from those assets.

Examples?

Uber and Lyft are extremely well known companies that are disrupting the traditional taxi and car ride industry using technology to empower individuals to use their own vehicle (an asset) and their own time to generate revenue by offering a ride service. The technology is amazing – you download the company application (or app), provide a credit card number for payment, enter your location and destination and hit submit. Almost immediately you get a response with the name and photo of your driver and the car, the number of minutes until pick up, the estimated fare and then you can track the driver’s progress to your location – a little car moving along the map showing you where your driver is. The driver arrives, takes you to your location and you’re done. Payment is automatic and you get a receipt and a request to review the driver by email. Wow. Try it. You will like it.

The other well known disruptive company is Airbnb. This company uses a technology platform to allow individuals with rooms to rent to make those rooms available to travelers looking for a unique and most often less expensive accommodation when they’re on the road. As with Uber and Lyfte, the system is based on technology that matches the host with the traveler, allows for a back and forth communication, reviews of both parties for others to see and a seamless payment transaction. As an alternative to a traditional hotel model, Airbnb empowers the hosts to use their assets (rooms or space) to generate revenue while enabling travelers to secure reasonably priced accommodations that otherwise might not be available.

Is disruptive technology coming to the campground and RV park business? You bet it is. At least two companies, RVwithme.com and Hipcamp.com are already out there providing rural and back country camping opportunities.

And word has it that another new company, byoRV.com is about to hit the street as well. This company is focused on using technology to allow RVers to locate RV overnight parking in suburban and urban areas where generally there are no campgrounds that provide easy access to these populated areas. byoRV will use its technology to pair property hosts with parking space for an RV with RVers looking for space in close proximity to populated areas – cities, major tourist attractions, hospitals, festivals, sporting events and family festivities. Here too, the transactions and interactions between the property hosts and RVers will be handled on line with direct communications before the reservation is made and post-stay reviews both critical to the smooth operations.

I would expect that some campground owners might anticipate that this model will be disruptive to their business. In the case of Uber and Airbnb, the systems have become so popular worldwide that the companies are being widely accepted in almost every location. Just last week, Sarasota, Florida removed most city regulations from traditional taxis when they tried to apply those regulations to Uber. Uber threatened to pull out of the market if they were forced to adhere to taxi regulations. Rather than lose Uber, the Sarasota City Council removed almost all regulation from all ride services.

How do you feel about these business models? What do you think about the byoRV.com model? Investments in many disruptive technologies have proved to be extremely strong. byoRV.com is raising funds and looks to expand worldwide – wherever RVs are sold and used byoRV will have potential customers. Would love to hear any comments from readers. Reach me at david@davidgorinassociates.com.

Marketing & Discounts

Most park owners know the various ways to market and advertise their parks. Social media via Facebook, TripAdvisor, Twitter and Pinterest. Former guest and other email addresses from shows or phone inquiries get an e-newsletter promoting special events. Some print advertising in state and maybe a national directory or two. Listings on a few websites like Go Camping America, state tourism office websites, local chamber or tourism websites. And maybe RV and camping shows in primary markets.

Within all of these marketing avenues, the one feature that seems to be consistent is the inclusion of a discount of some sort to attract campers. No matter how successful the park, no matter the location, no matter how good the reviews, pricing still seems to get the most attention of the park owner and the potential guest.

With this in mind, a new website is about to make its debut in the park business – campgrrounddiscounts.com! This will be a central on-line catalogue or compendium of campgrounds that offer discounts on a regular basis (i.e. Good Sam or a regular mid-week discount), on a select basis (Passport America or a special park promotion or shoulder season), or to special audiences (military, seniors). Parks using the site to promote their discounts will be able to post last minute “specials” as well as its on-going discounts.

RVers will be able to search for parks on devices based on their location as they travel or by city and state search.

Be on the lookout for the introduction of this new marketing venue. If there’s anything RVers like better than RVing, it’s RVing at a discount! The new site is being managed by David Gorin Associates

To SEO or Not SEO…..That is the Question

From a recent article in Campground Industry E News (June 10th issue)

The snake oil of the Internet age is search engine optimization, commonly known by its acronym: SEO……..In a recent phone call with the former president of one of the world’s leading e-commerce companies, I was struck by his advice to “never hire an SEO agency.” Wasting time trying to find a legitimate SEO company is like trying to find a “good” fortune teller, used car salesman, or payday loan company. They are all truly good at trying taking your money. SEO is nonetheless big business. Be suspicious of companies that offer SEO reports as a means of getting their fool in the door, offer to fix your website so that it will “start ranking higher on the search engines” or show you Google Analytics charts and graphs with misleading annotations that allegedly document their expertise.

In the same issue Campground Industry E-News, just a couple of pages later:

……Google has raised the bar and developed sophisticated search tools that enable the company to sort the stagnant websites from websites those that are constantly being loaded with fresh content…….(name omitted) provided participants with search engine optimization reports which enabled them to see how well their websites were optimized and what needs to be fixed. “We will run search engine optimization reports for anyone who wants one. These reports will provide operators with information on what’s working on their website, what needs to be fixed and where they rank on particular keyword searches.

…….offers SEO services, which enable park operators to not only update their websites, but to develop content strategies that can help them achieve higher rankings on Google searches. This company, the article states, is the “official SEO company of the campground industry.”

Given the disparity of opinion on the value of SEO from these two long time industry experts, I thought I’d turn to my expert, Evanne Schmarder. Evanne is the architect of the industry-first Digital Marketing Benchmark Study for Outdoor Recreation, and co-author of Unconventional Wisdom Works – the industry’s premier digital marketing handbook, and has been active in outdoor recreation marketing for over a decade. Schmarder is an international digital marketing speaker most recently addressing audiences in Germany, France, Australia, and RVDA in the US, and a go-to resource for online marketing in outdoor recreation.

Here’s Evanne’s two cents on the SEO: Yes or No? question.

Regardless of what SEO camp you belong to — snake oil, significant tool, or somewhere in between — appearing on the first page of search engine results still matters and search engine optimization still plays a significant part in online success. Keyword stuffing, non-relevant links, and multiple pages of meaningless content among other tactics are no longer effective. Instead longtail keywords, specific title tags and H1 headers, video and social content, and mobile functionality rule today’s SEO world. Smart businesses take advantage of analytics, researching how a site is being found, how visitors are flowing through the pages, and the entrance/exit pages. They stay on top of relevant, valuable content (including curated content), are active on relevant social sites, optimize their YouTube videos, optimize their site speed, and review their competitor’s SEO strategy. It is in these small but critical details that businesses can benefit from hiring a web-aware SEO practitioner, all the better if they are familiar with the outdoor hospitality industry.

RV Park Development Heating Up

As I’ve written in earlier columns, as RV sales continue on a 6 year run up and as RVing and camping continue to gain popularity in the press, soc ial media and product marketing (see the recent series of ads being run by Expedient about credit scores that take place in an RV), developer and land owner interest in building new RV parks is heating up. there is certainly a need for new parks in many areas of the US, I think a word of caution is called for at this point.

In my opinion, developers should exercise extreme care in evaluating opportunities for new RV parks. With the recession of 2007 – 2009 still fresh in mind, very conservative planning is how I am approaching clients with an RV development in mind. In fact, in recent months, I’ve discouraged several developers from moving forward when my analysis of property or location caused concern and raised a red flag of caution and higher than acceptable risk.

I’ve recently reviewed several development prospectuses and have been surprised by some of the plans I’ve come across that are being touted as sound investments by some of my consultant colleagues.

*I continue to be amazed at a projected $100 million RV park project that is planned to be essentially a time share or membership park in St. Augustine, FL. What are they thinking and what industry are they looking at as a model?

*A proposed high end luxury RV park with over 400 sites located midway between Phoenix and Los Angeles anticipates selling 100 sites prior to construction. Is there any park in the US that has ever sold 100 sites prior to development or was even able to keep up that pace of sales over 4 years? If one park exists that has been that successful, I must have missed it. This projection is being circulated to potential buyers or partners who to get into this deal. I’m on the sidelines on this

*On another project, I recently saw a fundraising or feasibility study prospectus that used a property appraisal from 2007 to justify today’s valuation.

*And one of the industry’s long term condo developers whose successes go back to the 1970s, is back at it again in Jupiter building a new park with sites proposed to sell into the mid-$250,000s. And he’s back to the class A motorcoach only model that severely limits the market and to be successful has to be located in the best of the best locations – Naples, Hilton Head, Napa, Aspen, places like that where the rich and famous like to hang out. Jupiter’s nice but the location of this project is a sizeable drive to the beaches, is not waterfront and is not on the higher end Jupiter Island.

While the time is surely right for new park development, conservative planning is the key word. Take it easy, plan carefully, study and know the market and innovate in small increments with small risk.

What Are the Industry Associations Up To?

The three leading industry associations involved in RVs and camping are the RV Industry Association representing the RV manufacturers, the RV Dealers Association representing exactly what their name says, and the National Association of RV Parks & Campgrounds representing that group.

To some degree with some more or less openess, each organization reports in some form to its members what it is up to in programs and activities, how much money the collect from each source of income, how they spend the money on salaries, programs, tax-exempt activities and on non-exempt activities.

Members and others who want to know the real scoop on how the associations are operating can access the annual 990 Tax Return each organization is required to file with the Internal Revenue Service. These returns are supposed to be available upon request to any member or to the public. The returns are also available at Guidestar.org, an organization that tracks non-profits and their subsidiaries.

A quick look at the three organizations returns provides one interesting finding……..RVIA is of course the big cahoona with an annual budget in excess of $15 million. The surprise is that ARVC has surpassed RVDA in the number 2 position among our industry organizations. ARVC reported revenue of $2.284 in 2014 while RVDA reported $2.075 million.

Lots of other interesting facts and tidbits are available on these forms for those interested in learning more.

Big Move for the Park Model Business

It takes a lot these days to get me excited about something in the RV industry, but a recent announcement about what I think is a major move in the park model business really caught my attention.

For years the park model business has been trying to capture the public’s attention – the RVing public as well as the general public. And now comes a big announcement from the most recognizable brand in the RV world – Winnebago. The company has signed a licensing agreement with Champion Home Builders for Champion to build Winnebago park models! Champion owns park model builder Athens Park Homes and is a major player in the manufactured housing arena.

The fact that Winnebago sees park models as an extension of the Winnebago brand should come as welcome news to the park model community although it no doubt will be a major competitor in the market.

What might come next? A Fleetwood Park Model? A Jayco Park Model? Maybe Fleetwood? The move of a main line RV manufacturer directly into the park model business certainly helps solidify the position of the park model as a main line RV that deserves all of the recognition accorded to other Winnebago and other brands.

Be interesting to see how the sales of park models goes in the coming year or two. Sales seem to be trending upward month by month as reported by RVIA and this new Winnebago/Champion partnership should give the numbers a boost.

Sales Event Selling Coming to the Park Industry?

Most readers of this column are probably familiar with the big glossy postcards that arrive in your mail or the full page newspaper ads promoting 10 acre mountain land parcels with streams and great mountain views for just $29,000 (or sometimes even less)! The adsprovides a day and date for this once in a lifetime opportunity to buy mountain land for you and your family to enjoy forever. Usually the roads and utilities are in the development and the land is surveyed and staked for each parcel. All you need to do is call to set up an appointment for the day of the sale so you can be among the select group who will take advantage of this great opportunity.

Sound familiar?

Well, maybe it’s time for this sales method to be adopted to the RV park industry and used to pre-sell RV sites in some great locations.

I recently had occasion to spend a day with a client in the Smokey Mountains who has successfully used this technique to sell RV sites at an RV park that had been trying for a number of years to sell the sites as RV condominiums. Some sites had been sold but a majority of the sites remained unsold.

Well, this client of mine used what he refers to as a land sale event to sell out most of the remaining sites in one day at prices that were very acceptable to the seller and in line with the prices of the few sites that were sold earlier.

Check out this You Tube video to see what the sale event looked like: https://youtu.be/sR_iYmS-QEY.

The client is now preparing to execute a sales event to sell RV sites on a beautiful tract of land right on Douglas Lake in the Smokey Mountain area of Tennessee. The property will have about 190 sites on a peninsula into the lake – these sites will have boat dock possibilities and direct lake access. And additional 100 or more sites will have lake views and access. Clubhouse, pools, and recreational amenities will be part of the development. Using the land sales event technique, the seller will sell 3000-4000 square foot lots suitable for a camping, RVing or park model site. The lots are sold unfinished and the buyer can improve the lot at their own pace and as they feel it best suits their needs.

The lot prices will be at a level that makes them available to just about any middle-class couple or family that wants to have a lake front recreational site that can grow with them as they wish. Imagine starting with a pop-up or even a tent, and over the years moving to a travel trailer, 5th wheel, motorhome and then a park model cabin.

Will it be successful? We’ll have to wait and watch to see how the event goes but if it is successful, it may well be a technique that can help expand the number of camping and RV sites available in some great scenic, cultural, historic and recreational places in our country.

If you’re interested in learning more about this land sales event technique and the company that is pioneering it in the RV park business, give me a call (703 448 6863) or drop me an email to david@davidgorinassociates.com

I fully realize that there may be some skeptics out there wondering if Gorin’s going to far or if he’s lost his mind by advocating this type of sale. I can assure you that neither is the case. My client is a well-respected developer and marketer who has a great track record of conducting these sales in a no pressure, 100% ethical and legal manner. He’s not selling swamp land or selling land that is inaccessible.

Recognizing Two Long Time Industry Friends

There was a recent announcement that came across the online news wires that Jo Ann Mickelson has been awarded the Jack Denton Memorial Award from the Arizona Association of RV Parks and Campgrounds. As a friend of both Jo Ann and Jack, I know he would have been thrilled that Jo
Ann has been recognized with an award in his memory. Jack and JoAnn were colleagues, friends, neighbors and I suppose competitors in the Flagstaff, AZ market where Jack owned the Flagstaff KOA and Jo Ann and her husband Harvey own J & H RV Park in the same town.

In the probably 25+ years I’ve known Jo Ann, she has been a stalwart leader of the AZ park industry serving over the years as President of the state association, a board member probably for all those years, and probably as an office and committee chairman. And now, Jo Ann continues to serve the association as its Executive Director. In a state association comprised to a great degree of large mega RV parks, Jo Ann has represented and been a leading spokesperson for the smaller parks in the state

Industry InSites – May 2015

What a Winter!!

In more ways than one, it’s been quite a winter. On the one hand, the northern tier of the country has experienced all kinds of record cold temperatures while Boston and a lot of New England experienced record snow falls to go along with the cold. No doubt large numbers of Americans are suffering from cabin fever and are ready to get outdoors.

For me, it’s also been quite a winter. For the first time, I actually spent the winter in Florida, arriving on December 10th and getting ready to head north to Virginia in a couple of days. But what really stands out in my mind about this winter is not just the sunny warm winter Florida days but the intense interest I’ve seen in the RV park industry.

This winter has been the busiest on record for David Gorin Associates. As the RV industry was in its 6th straight year of growth since the great recession, my business growth is obviously feeling the wind at our back. We have fielded more telephone and email inquiries since early January than ever before in a 3 month period. Developer and investor interest in the RV park business seems to me to be at an all-time high. And as my travel schedule certainly attests, the increasing level of interest in the RV park real estate asset class appears to be at its highest level since I entered this end of the business in 2002.

For the first time, business was actually getting in the way of social activities, golf and enjoying the outdoors! Feasibility studies are not quick consulting jobs. They are time intensive and involve significant travel, research, contemplation, financial analysis and study.

I’ve no idea how my consulting colleagues around the country are doing this winter, but for DGA we’ve done projects in Tennessee, New Jersey, Georgia, Alabama (2 projects), Arkansas, Nebraska, New York, Ohio, Florida and South Carolina. And another Ohio, another New York, and Mississippi are still to come. If half of these projects actually materialize and produce new RV parks, it will add significantly to the number of new, state of the art available RV sites. And new product in the market place is certainly a good thing.

Man, I wish I were 20 years younger so I could really take advantage of this exploding market opportunity.

And by the way, much to my disappointment, this winter marked another milestone in my life……I actually turned 70 (freakin’) years old! No fun. Can’t believe I was just 42 when I joined NCOA (the National Campground Owners Association, the forerunner of ARVC) and that was 28 years ago. What a ride it’s been and there’s still much more to do. To the three wise men of NCOA at the time – Dan O’Connell, Al Daniels and Erv Banes – who gave me the opportunity to join the park industry, I wish them a happy 70th also. I’m not sure exactly when they go over the big 70 but if I recall, we were all about the same age 28 years ago.

Baby Boomers v Millennials

For just about as long as I can remember, the RV industry has hitched its star to the baby boomer generation. The post World War II generation, born between 1946 and 1964, were to be the generation that would put the RV industry on the map. Affluent, successful, and getting ready to go over the age of 50 and enter the prime RV buying years, this generation was to turn 50 beginning in 1996 at the rate of 11,000 a day! Surely, there would be RV buyers aplenty out there.

In a recent issue of RoadSigns, a quarterly economic review publication of the RV Industry Association, economist Richard Curtin has turned some attention to the next coming generation, the Millennials.

Curtin points out that the Millennials, the oldest of which were born in 1980 and are now 35, are now the largest US generation, outnumbering the baby boomers. The most important characteristic of the millennials, says Curtin, is that they share core RV values – a deep attachment with family and friends to the outdoor lifestyle, and have an active interest in exploring nature and traveling. They are attracted to products and marketing strategies that reflect these characteristics. Millennials are more diverse in their ethnicity, living arrangements and lifestyles, and they face a less positive economy than prior generations. They are the first generation of the internet and social media age. Forward looking companies and industries recognize that enormous changes are required to serve this millennial market and successful companies will adapt their products and marketing to meet this new group.

Attention Campground Owners – the millennials are not too far way and its not too early to begin to think about what this next cohort of RV owners may find attractive. The average age of the RV buyer, especially buyers of travel trailers and toy box trailers, is already in the low 40s and dropping. Pretty soon they will run into the millennials on their way up. Take a look at your own family, listen to your millennial aged kids and watch what they like and what they do. They are your future customers.

Shoot Out at Walmart

A March 23rd shoot out in a Walmart parking lot in Cottonwood, AZ may have a cooling effect on overnight camping at Walmart that the park industry has been hoping for over the years. The shoot out and brawl involved 8 police officers and 8 civilians.
According to the newspaper account of the incident, the suspects had been staying (living…camping) in a Suburban vehicle for at least four days in the parking lot, according to a man camping out in an RV in the parking lot. The man would not give his name nor do we know how long he’d been camping out there.
The man said he looked out of his RV’s window after the brawl and shootout woke him up Saturday night. He heard screaming and saw people running around and firing guns.
Over the last many years, the issue of safety of staying in Walmart parking has been raised repeatedly. There have been numerous incidents of shootings, kidnapping, carjacking, robbery and other crimes in these parking lots not unlike these types of incidents in almost any city and in almost any large parking lot.
I remember one RVer writing to ARVC years ago when an editorial about overnight parking raised the question of safety. The writer was irate and was sure that ARVC was just trying to scare RVers to staying in campgrounds. He said something like “don’t you try to tell us what to do. We all have loaded guns in our RVs and let anyone come near us and they’ll be sorry.”
Maybe now the Walmart lawyers will decide that overnight camping in Walmart lots, in RVs or Suburbans, isn’t really a necessary feature of Walmart. We’ll see what happens this time.

Salute to Richard Coon

RVIA President Richard Coon has announced he will retire at the end of September. A lot will be written and said about Richard and the outstanding leadership he has provided to RVIA since taking the position in 2006 but the one thing that truly stands out in my mind is his stable, solid leadership of the industry during the recession years of 2008 and 2009. Those were incredibly difficult years for every industry but not many took a hit of the size of the RV industry that endured a sales decline of over 50% during those years. Richard’s strong leadership that steered the manufacturers through that tough time stands out in my mind as a super accomplishment. Taking over in the record high-water mark year of 2006, watching sales plummet and then rebound over the last 6 years is surely a sign of a superb executive.
Congratulations Richard on a job very well done. Enjoy your final months at the helm of a great association. I know campground owners should be on the lookout for the Coon family as you most likely enjoy an RV retirement – at least some of the time.

Final Word

I know it’s been a booming winter season in Florida and expect it’s been the same in Texas, Arizona and southern California. And as the summer season is just around the corner, I wish all the summer parks all the best for a safe and prosperous summer season. All the stars are aligned for a great camping year.
KOA recently announced that’s its reservations taken during the first 60 days of 2015 were the most in its history. Great news for KOA and hopefully it’s a signal for the rest of the industry – a good summer is ahead.

Industry Insites – February 2015

Eye Catching Headline

A headline in the December 2014 daily on-line RV Business newsletter really caught my attention: Work Underway on $100 million Florida RV Resort. The story describes The Fountains of St. Augustine to be “located in the nation’s oldest permanently settled city.”

Having worked now for about 13 years as a consultant primarily doing feasibility studies for developers and investors interested in building new RV parks in various places around the country, I was intrigued by the headline and the scope of the investment. To my knowledge (and I may be wrong here), there has not been a new RV park built on this scale or any where near this scale EVER. Some condominium RV parks built in the early 2000’s came in the mid $20 million range and to the best of my knowledge nd those built in that price range have struggled to make the business model work.

I wish the developers of The Fountains great success as that would be provide strong evidence of significant strength in the high end of the RV and RV resort market. However, I must admit to considerable skepticism that this project can be successful with that kind of investment.

The Fountains is offering 246 sites each with a “casita” or villa ranging in size from 485 square feet to 2 story homes up to 1447 square feet. While the promotional materials and website refers to the resort as a premium motorcoach resort or a class A motorhome resort, the project comes close to being a home or residential community with RV parking next to each home.

Based on the announced $100 million investment, that comes to about $406,000 per site at cost so we are probably looking at $550,000 to $600,000 retail/site! Does anyone know of any motorcoach resort that has been successful at that level?

It is interesting to note that through November 30, 2014, the industry shipped just over 20,000 class A motorhomes. In 2013, the number was 19,000+. This is about 1 class a unit for every 10 towables. Based on 11,000,000 or so RVs on the road today in the US, about 1.1 million may be class As and this includes units that may have been on the road since the 1980s. Given the size of this class A market, would seem to me that the developers of The Fountains have their work cut out for them – a relatively small market size of class A owners, a nice location but hardly a world class area like Hilton Head or Napa Valley or Aspen, very high development costs and pretty high prices.

Will be interesting to watch the development and hopefully report back on a smashing success sometime down the line.

ARVC: Washington, DC to Denver

While attending the recent Outdoor Hospitality Conference & Expo (OHCE) sponsored by ARVC in Las Vegas in early December, it was interesting to note how the ARVC’s education program now centers entirely on the Outdoor Hospitality Education Program (OHEP) and how the OHEP is being integrated throughout the ARVC program. Good idea, I thought. It flows nicely through the education sessions at the conference, is being integrated into the curriculum of the National Schools of RV Park & Campground Management in West Virginia and now in Colorado in July. It appears in the ARVC Voice articles and I understand a text book is being created to use in all seminars and classes taught for OHEP credit at state conventions and elsewhere. And now even a special designation – Superior Quality Staff – to recognize those parks that enroll all of their staff and have them all certified at some level.

I applaud Barb Youmans, Mark Mahacia and Saundra Brynn for their hard work in developing and bringing this program to the forefront of the industry. I only hope that ARVC members embrace the program although I expect that the numbers of participants may be slow to grow as the program is far from simple, requiring participants to complete assignments, undergo reviews and prove their learning – not a bad idea but something that I think will be hard for many small business owners to get excited about.

The other thought that occurred to me during the convention was that its been 7 years since ARVC left Washington in covered wagons and headed across the great Applachian Mountains and the western prairies for Castle Rock outside of Denver, Colorado. As I recall, the primary reasons for the move were twofold.

First, it was the sense that the cost of living in the Denver area would be significantly less than in the DC area and the first rate staff could be hired at lower cost than a similar staff in DC. Secondly, the original move was to Castle Rock where the ARVC building would be situated on a large property adjacent to a campground on property where the Center for Outdoor Hospitality could be developed by the
ARVC Foundation.

On the cost of living side of this discussion, current data strongly supports the move to Denver, According to the online bank BankRate.com, salaries in the Denver area are approximately 22% below Washington DC salary levels for comparable positions. An individual making $100,000 in DC would be able to take a 22% pay cut to about $78,000 while maintaining the same standard of living in Denver. So it would seem that ARVC could be employing a more professional staff at significant savings.

As far as the Center for Outdoor Hospitality and a showcase campground, when the deal on the Castle Rock building and property went south, that idea apparently was put on the back burner. Whether is ever comes back on the table, is anyone’s guess.

In early January, I sent an inquiry to Paul Bambei, ARVC President and CEO, asking him his impressions of the ARVC move to Denver. Paul was a Denver resident prior to his position with ARVC and chances are neither he nor any of the current staff would have ever been associated with ARVC were it not for the move. And as Paul noted in his response, he was not a part of the ARVC decision to move the association.

How the current salary levels would compare with those necessary to operate ARVC in DC is not the subject for this article but perhaps that subject will come up in the future.

For what it’s worth, here’s the exchange of emails with Paul’s view of ARVC in Denver as opposed to Washington, DC.
Gorin to Bambei: It’s been about 7 years since ARVC left the DC area. Do you have any thoughts on the pros and cons of that move and any thoughts on advantages or disadvantages of ARVC being in Denver as opposed to the DC area? What’s the current breakdown on ARVC membership east and west of the Mississippi River? Does ARVC maintain dues paying membership in the Small Business Legislative Council? The American Recreation Coalition? The US Travel Association? Is the association represented on the boards of these organizations?
Bambei to Gorin: “Let me try to give you an overall perspective of the move from DC to Denver, which as you know occurred before my start at arvc. One of the more important positives resulting from the move has been a lower cost structure incurred by the Association. According to recent data, DC ranks about 30 basis points higher than Denver in the cost of labor. Additionally, Denver’s overall cost of living is remarkably lower as well, which affects many day to day operating costs of our business. Arvc is in a much stronger financial position than it was seven years ago, due in large part to this move.
Regarding involvement in DC based associations such as SBLC, ARC, and USTA, we are dues paying members in organizations where the benefit and value is clearly demonstrated. I personally stay connected to these and many other organizations by reviewing the constant communiques that come on a frequent basis. I do not sit on their Boards, as it would be a tremendous commitment of time that I consciously choose to devote in other ways, but make no mistake I’m aware of what they do.
Of course, we have a dedicated staff person in Jeff Sims who stays on top of industry activity impacting arvc, which I don’t believe was the case prior to the DC move, and have also subscribed to the State Net service since 2011 to stay abreast of all regulatory and legislative activity affecting our industry at the local level. Should any issues of national impact require lobbying effort, we also employ the DC law firm McDermott, Will and Emery, whom we selected for their respected lobby influence.
In conclusion, I’d say the arvc Board made a wise financial choice by deciding to come to Denver, and feel we haven’t sacrificed our industry connections to DC from a lobby/networking aspect in the process. In fact, based on the direct work we conduct through staff, a very active Public Affairs Committee, State Net, etc., I feel we’re actually serving our members extremely well. “
What do you think? Has the move to Denver been beneficial from your perspective as a member of the association? How’s ARVC doing as a western-based organization?

Industry Insites – December 2014

Random Thoughts on the Business…….

The Latest HUD Park Model Issue

Sure hope the industry is looking at exactly what happened here. After a number of years of quiet, what suddenly prompted HUD to revise the method of measuring the size of a park model. I know they claim they haven’t changed anything, but for practical purposes measuring a park model to include the porch is a change in the process.

In Washington, nothing happens without a reason. Who is behind the October memo from Pamela Danner, the new HUD official overseeing manufactured housing? Somehow, I doubt that she woke up one morning and decided to screw the RV industry and the parks. More likely, someone put a document in front of her to get the ball rolling, followed by a visit from someone with a particular interest and then it just happened. Sure would be nice to know what the industry is up against because the same forces are most likely to be on the scene if and when congressional legislation becomes likely. My guess is that the new Congress in January is not going to be spending much time worrying about the RV industry and if the issue is at all controversial in the House or Senate, passage is going to be quite difficult if not impossible. So, who’s behind this?

Perhaps we should start by looking at Ms. Danner. Her long legal and government service career has many intersections with the manufactured housing industry.

What is the RV Park & Campground Business?

I’m pleased that the Pennsylvania Campground Owners Association invited me to present a seminar this Tuesday on Trends in the Park Industry. I’ve done a similar seminar at various meetings in recent years and always find it interesting to use the opportunity to track the relevant changes in the park industry.

As I prepared for the PA seminar, I decided to take a look at the various business lines that park operators are engaged in every day.

Here’s a quick rundown of the lines of business that come to mind: Camping……Outdoor Recreation…..Hospitality……..Entertainment……..Travel…….Amusement Park……Attractions……… Lodging……..RVing……..Tourism……..Sports. And you can probably think of many others.

In thinking about this question, I’ve concluded that a campground or RV park is really an amusement park. Yes, a different business model than we normally associate with that business, but an amusement park none the less.

A campground has activities and events intended to amuse and entertain the audience. The park has food services at varying levels ranging from park-wide meal events (pancake breakfasts, holiday themed meals) to snack bars, ice cream parlors and restaurants of various service levels. A park has a wide variety of amenities and facilities designed to amuse and entertain such as swimming pools and water-related features ranging from large water parks to water slides, splash pads and lazy rivers, hay wagon rides, various styled bikes from three wheelers to water bikes, laser tag, zip lines, holiday parades, basketball courts and soccer fields, themed events like Water Wars, Christmas in July and murder mystery weekends. Most campgrounds operate on a seasonal basis with some special shoulder season events. Stores that sell souvenirs, t-shirts, hats and special fun cups and other unique items are found in m ost campgrounds. Most parks offer a single price that includes all of the facilities and amenities while other parks offer an admission fee (camping fee) plus an extra fee for the amusements and entertainment. And special park discounts at certain times of the year encourage visits for different markets.

Now the amusement park. Try re-reading the above paragraph and substitute amusement park for campground or park. Pretty much the same thing, right?

When you have a chance, go visit an amusement park in your area. Guaranteed you’ll come home with some new ideas on how to please your guests.

Praise for Suppliers

Every now and then on Facebook or Linked in or in some other venue, there’s a supplier posting or talking about how they find campground owners to be among the nicest, most down to earth and hospitable people to be found in every industry. They praise park owners openness and willingness to help others, even their competitors.

Rarely if ever have I seen a Facebook or Linked in post or other comment from a campground owner praising the services of a supplier to their business who plays a role behind the scenes in their success. So, here I go.

Suppliers I met in the park industry, especially those I’ve known for 25 years or more are among the nicest folks I’ve known or worked with in any venue. Their desire to provide the best products and services and competitive prices is unsurpassed in any industry.

As campers have many choices of where to camp, so too do campground owners have many choices when it comes to where to purchase the essential needs of running their business. Many campground industry suppliers have been around serving the industry for many, many years while others are new to the industry, having been drawn to it by the great positive publicity the camping and outdoor recreation and RVing has received in recent years.

The suppliers I’ve known for many years are great folks who, like campground owners, rely heavily on good reviews and repeat business (sound familiar?).

When you can and when you feel its deserved, why not write a comment or review of a supplier experience you’ve had and post it on Facebook or on Linked In. Or visit Yelp or other review sites and share your positive experiences.

Go Suppliers!!!!

The KISS Principal

Time to remind everyone of the KISS principal – keep it simple, stupid!.

Check out your website – is it intuitive, simple and quick to respond to commands, available for Ipads, smart phones and any and all other media, clean and not too cutesy, is any music appropriate and at a reasonable volume?

Arrival and check in process is often fraught with delays and time consuming processes. Is it easy, quick and simple for your guests to arrive?

You get the idea. Take the time to review all of your policies, practices and so forth and see if you can KISS them to make it easier for you, your staff and your guests.

And a word to associations out there – national, regional, state and local campground associations. Want to gain new members? Want to retain current ones? Want to increase involvement and attendance? All programs and activities should be reviewed for KISS compliance.

Small business that comprise the majority of the campground and RV park business don’t have time or the inclination to engage in complex, confusing or lengthy steps to take advantage of the values of the membership. The longer it takes to take an action, the less likely it is that the action will be taken. And the less actions taken by members, the greater the likelihood that they will explore whether or not the membership is worthwhile.

Nine times out of ten, measuring your business processes against KISS will lead to business improvements. Try it.

Industry Insites – November 2014

43 Years…..Moving On

On September 30, 2014, I turned over the management of the Virginia Campground Association to Derek Dick, a former ARVC staffer now living in Virginia. With that, I concluded 43 years in the association management world. Over those years, I’ve been associated with the American Jewish Congress, the American National Metric Council, the Solar Energy Industries Association, the National Association of RV Parks & Campgrounds and finally the Virginia Campground Association.

Association management has been a fulfilling career but its time to turn my full time attention to consulting work in the RV park and campground industry as the industry steps up its growth and development into a modern 21st century hospitality and recreation business. And it’s time to pursue some new ventures and advocacy in the business.

Advocacy

In the August issue of Campground Management and also in RV Business, I wrote a column suggesting that it is time for the terrific Go RVing promotion program to expand its horizons into Go RVing……and Camping promotion.

I feel strongly that the time has come for the three legs of the RV industry stool – the manufacturers, dealers and accommodations – to re-establish the close relationship that created the Go Camping America program in the 1980’s and was the foundation for the eventual emergence of the Go RVing program. While it’s clear that RVs have multiple uses depending on the desires of the owners of the rigs, it’s equally clear that the dominant use of an RV is camping in one form and one place or another.

RV parks are popping up in many places. NASCAR and other racing venues are moving to formalize camping in RV areas that were previously informal parking areas for tailgating. The same is happening around major universities where RV tailgating is a major event combined with college football. And golf resorts, ski resorts, amusement parks are increasingly recognizing the growing popularity of RVing and the need to provide campgrounds or RV parks (the terminology is not really important). Federal, state and local parks are sprucing up their camping areas to serve the growing RV market.

It’s kind of like the old days in Las Vegas when hotel rates and food costs were incidental and the profits were all from gambling. Many entertainment and sports venues provided for RVs but either didn’t charge or charged very little. Now, there’s an awakening that there’s money to be made in RV parks – why give away what can become a profitable revenue source.

The Go RVing program has over the years focused on the many uses of an RV – taking the kids to soccer games and tournaments, tailgating, “pursuing passions” of all kinds, getting “away”, and so on. But most of these uses include nights out in campgrounds and RV parks.

Go RVing has the mechanism in place to raise additional funding to expand the Go RVing program to include camping. It’s up to the leaders of Go RVing and, more importantly, to the leaders of ARVC and the park industry, to get together and figure out how to expand the program to include camping. Demonstrating to potential RVers the many diverse campgrounds available for their enjoyment and use should certainly contribute to a better understanding of the joys of RVing and help increase RV sales while supporting the growth of the park industry.

It was somewhat disappointing to note that the column proposing this expansion of Go RVing received not a single comment or response – pro or con – from readers. As the campground industry would be the major beneficiary of the expansion, I expected that there would be some response from that end of the industry.

As a long time member of both ARVC and RVIA for many years, I would encourage the leaders of those organizations, chief executives and elected leaders to let the industries they represent know where they stand on this proposal to expand Go RVing. If it’s a lousy idea, say so and tell us why. If the idea is positive, say so as well.

At least from the park industry perspective, expansion of the promotion program should be something with broad support. The silence is deafening.

RV Site Ownership

Back in the early part of this century, RV condominium site ownership was growing rapidly in many parts of the country. As the real estate market pushed land and home prices skyward, many park owners in key locations were selling out to developers who had plans for a higher and better use of the land. RVers, especially in Florida, became concerned that their winter RV parks would be sold out from under them and they would have to relocate elsewhere. The popular thinking was that RV sites in desirable areas would become fewer and fewer and RVers would be forced to settle for second rate locations.

And thus was born the RV condominium park where an RVer could buy a site, become an owner of the campground and assure its continuation for years to come.

The own your own site business flourished in many areas from 2001 to the real estate implosion and the recession of 2007 to 2009. RV condo site sales dropped dramatically – in fact almost disappeared. Developers were forced to drop prices significantly and while that helped in some cases, for the most part RVers like the rest of the country, were not in a spending mood. If the price was down 50% today, why not wait until it goes down 75%?

As the recession has eased, site sales have edged a bit in certain areas where price declines have put the sites in the range of affordability for more RVers. But it is now appearing that except in some very special circumstances where the location of the park is too good to pass up, the price declines have not been sufficient to show RVers that it is less expensive to own then to rent.

And as the building boom in Florida and elsewhere has not come back to the fever pitch of the period before the recession, few RVers are worried about their favorite RV park disappearing to make room for re-development. And the view of RV site ownership as an investment with strong upside

The keys to a successful RV site sales program are several. First and foremost, as noted above if the lot price is set at a point where owning is as good or better than renting. For a broad segment of RV owners, this is most important in a successful sales program. Second, the location has to so strong that it has a wide appeal to RVers of all types and where pricing to secure the location is reasonable and within reach of a large market segment. Third, the development has to be so exceptional in terms of location, limited number of sites, amenities, aesthetics, service and high end appeal that it will capture the attention of the small cadre of RV owners for whom price is no object.

The RV condominium business is likely to continue to come back as RV sales continue to expand. In certain areas, RV site supply may fall behind site demand and the condo market could heat up again. In this case, owning sites in a quality park with high demand for rentals could prove to be a solid investment over time.

Keep a careful eye on this market segment as converting an RV park to an ownership resort is a good exit strategy in the right circumstances.

Folder Name