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Texas Park Owners See Returns on Investments
Posted By RVBusiness On February 6, 2012 @ 12:14 pm In Breaking News | 1 Comment
When a Dallas-based investment group bought Almost Heaven RV Resort two years ago, the 142-site park was in a pretty sad state of repair.
But, according to a press release, Almost Heaven’s new owners weren’t about to give up on the resort, which had previously been popular with Winter Texans. So they brought in Horizon RV Resorts, which has developed a reputation in the RV park business for rescuing faltering RV parks and making them profitable businesses again.
So far, the Dallas-based investment group is pretty happy with its decision.
“We brought the park back to life,” said Randy Hendrickson, Horizon RV Park’s president and CEO.
Occupancies are running 30% to 35% ahead of last winter’s figures, fueled largely by Winter Texans who decided to give the resort another try after Horizon implemented $45,000 worth of targeted cosmetic improvements.
Hendrickson also worked with Brian Schaeffer of the Texas Association of Campground Owners (TACO), who outlined a marketing strategy that included banner ads on TexasCampgrounds.com as well as prominent exposure in the Texas RV Camping and Travel Guide.
“The person who asks the loudest for the business generally gets it,” Hendrickson said.
Almost Heaven is also generating increased year-round business by offering discounts to cancer patients seeking treatment at the MD Anderson Cancer Center, Children’s Cancer Hospital and other Houston area facilities.
Looking back, Hendrickson said Almost Heaven’s downward spiral could have been avoided if the resort had kept up with its marketing and made ongoing improvements to the park. Unfortunately, he said, they got too comfortable and felt they could get away with not making these investments.
“When you stop spending money on marketing,” Hendrickson said, “people stop coming. And if they stop coming, you don’t have money to spend on infrastructure. So the business spirals.”
And if occupancies are not maintained, the parks don’t retain enough of a margin to reinvest in improvements.
“You have to show that you’re reinvesting in the property as a commitment to the guest,” Hendrickson said, adding that it didn’t take long for Almost Heaven’s guests to realize the previous owner had lost in interest in the property.
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