Industry InSites July 2014

Competition Heats Up

Over the years, independent park owners that comprised much of the industry prided themselves on their openness and willingness to share information and experiences with other owners or new comers. This spirit of cooperation was a hallmark of the industry for many years. A rising tide – better operated campgrounds – would raise all boats – and everyone would benefit. While this spirit of cooperation can still be found in the business, there’s no doubt that competition is heating up among parks in many parts of the country. Several factors are contributing to the emerging competitive environment within the park business.

First, on the heels of the recession of 2008-2009, many campers and RVers are staying closer to home and traveling far and wide less frequently. The local and regional markets are the primary source of business for many campgrounds and attracting local and regional business is increasing important and competitive.

Second, there are more large companies expanding their network of campgrounds by acquiring parks in many markets, promoting their brands with considerable financial resources and expertise, and providing real competition where it may not have existed previously. Companies such as ELS, Sun Communities, Carefree, RVC Outdoor Destinations, Yogi Bear Jellystone Parks and KOA are bringing new marketing energy to the industry and working hard to expand their market share.

The deep discount camping clubs – Freedom Resorts, Passport America, Escapees – continue to expand, adding a competitive factor into the marketing plans of many parks.
And of course Good Sam and the new Amerigo Camping Club have more than 1.5 million members combined that they are pushing to their affiliated parks.
And for the independent campgrounds and RV parks around the US, we can’t overlook the new competitive force of Kampgrounds of America. Always a force in the market with more than 500 franchised and corporate owned properties, the new KOA initiatives to re-brand their affiliates to better help the RVer and camper find a KOA that meets their needs and now their plan to launch major national television advertising, KOA is rapidly repositioning its brand to gain wider appeal to all segments of the RVer and camper market and to expand their markets into the non-camper segment by aggressively promoting their cabins. KOA has always been a powerhouse marketing engine within the industry, but now with these initiatives, they are changing the popular perceptions of KOAs as good but not great places to camp to great places to visit. Raising their standards and demanding that affiliates become better and better, they are likely to grab market share across the US.
Finally, the competitive field is being challenged by federal, state and county parks that are expanding campgrounds and upgrading to a higher and more developed standard in order to attract more business and raise rates to support public recreation and public parks. There is no doubt in my mind, that these facilities are going to increasingly challenge private, commercial parks for market share.

The future is clear for independent campgrounds – step up your game in all aspects of your business to compete successfully or risk being the victim of declining occupancy as others “eat your lunch” in your market.

With the growth of RV sales and the rising popularity of outdoor recreation and camping, it’s a new era for the park business, one that calls for everyone to be on their toes all the time.

Technology Comes to the Laundry Room

I remember being impressed when my kids were in college and they could use their credit cards or school-issued meal cards to pay for the washers and dryers in the dorm laundry. Great idea. But I was taken by surprise by the latest development in laundry technology that I saw recently at a campground.

Aside from the ability to charge your washing and drying on a credit card, there was a system that enabled a customer to receive a text on their phone when a washer or dryer became available and another text to alert when their washing or drying was finished. No more hanging around waiting for an open washer and wondering where the thoughtless person was whose wash was done, “why were’nt they here to take their clothes out so I can use the machine?”

A good step forward in delivering top notch customer service in today’s technology age.

Are Campground Game Rooms and Cable TV On Their Way Out?

I’m hearing that many parks are re-positioning their game rooms and arcades. As more and more kids and families are traveling with their own game devices, many of the formerly popular arcades are seeing the revenues decline, especially on video games. While there may still be a good market for pinball games, billiards or pool, air hockey and crane games, the old reliable video games are rapidly becoming a thing of the past.

What’s your experience?

Along the with the changes in the game room business, it would seem that offering cable tv may also be on the decline, or at least about to head in that direction. With rapidly expanding demand for quality internet service with sufficient bandwidth to enable streaming of movies and television programs, combined with rising costs of providing cable television, it seems that the time may be coming to do away with cable television and put the savings into providing the best internet access possible. There is significant cost associated with quality park-wide wireless internet, but the savings on eliminating cable tv may compensate for the cost of providing high quality wi fi.

Anybody heading in this direction?

Digital Marketing for the Outdoor Recreation Industry

Industry digital marketing expert and RV Cooking Show hostess Evanne Schmarder is publishing a bi-weekly Digital Marketing Newsletter for the Outdoor Recreation Industry. The newsletter is available at no charge – drop Evanne a note at evanne@roadabode.com and ask her to add you to the subscriber list. If you agree that electronic marketing is the way to go for marketing your park, and even if you’ve got an expert social media marketer on your staff, you owe it to yourself to subscribe to this newsletter and keep up to date on the rapidly growing field of digital marketing.

Each issue is filled with ideas, tips, suggestions on how to improve your digital marketing and how to expand your reach.

And while you’re at it and contacting Evanne, ask her for a copy of her recently released Digital Marketing Benchmark Study, a valuable report on what your competitors are doing in the digital marketing era.

David Gorin Associates is a sponsor of both the Digital Marketing Newsletter and the Digital Marketing Benchmark Study. Digital is the wave of the future.