Thor Expanding Rental Lodging Market Reach

Editor’s Note: Thor Industries Inc. on Tuesday (March 23) announced that it is joining Midwest Leasing Inc. in rolling out a leasing and financing program for the rental lodging arena. Coupled with Thor’s previously announced vendor relationship with the National Association of RV Parks and Campgrounds (ARVC), the Midwest Leasing deal brings Thor’s team of RV lodging professionals full circle. Thor manufactures “ruggedized” rental lodging units customized to withstand the rigors of rental use under the Airstream, Breckenridge, CrossRoads and Keystone divisional brand names. Midwest Leasing, based in Crested Butte, Colo., will provide the financing to get them on site. “This Midwest Leasing announcement could not have been timed better, as ARVC owners are looking for the opportunity to add lodging inventory before the upcoming summer season,” said Shane Ott, a former KOA president and current director of campground relations for Jackson Center, Ohio-based Thor. His comments appear below with those of Midwest Leasing President Fran Wickenhauser, who is based in Crested Butte, Colo.

RVB: Why is this deal with Midwest Leasing Inc. important to the campground industry?

OTT: The No. 1 hang-up for campground owners right now is the lack of the ability to obtain financing. Banks have routinely struggled to understand the campground model anyway because our industry doesn’t have a lot of publicly traded companies. They don’t understand the dynamics. With the downturn in the economy it became increasingly tough. We’re providing an option. If you want to pursue lodging accommodations, we think we have an outstanding offering of park models and ruggedized RV units. It’s exclusive to Thor products.

RVB: How did this relationship unfold?

OTT: I pursued it. I talked to a couple of national lenders (about the program) and it was apparent it was going to be a long road. They didn’t say no to us but it was apparent this would be an arduous process going through two large companies, Thor and the institution. The window of opportunity is right now! Midwest Leasing, a smaller regional lending group, was able to move quicker and be more flexible with our needs at Thor. I spoke with Fran Wickenhauser, the president.

RVB: Why are you entering the RV park and campground sector?

WICKENHAUSER: It is a brand new market for us but we have always known that sector of the market was out there. We’re a general equipment leasor; we finance any type of equipment, computers to school buses to construction and production equipment. We have leased motorhomes and travel trailers in the past; we just haven’t done it on an organized basis and we haven’t done it for the campgrounds

In this economy, credit is tight all over. Campground owners are not unique. We realize we are coming into a segment of the market in a time when credit is still tighter than it was two to three years ago. That is true in the lending community in general. We are confident this economy is on the slow rebound and recovery and that lending will get more relaxed in their requirements as times goes on.

RVB: You are in a sense a middleman in this operation. Please explain.

WICKENHAUSER: We are a privately held company and have been in business since 1985. We have bank lines of credit. That’s typically how it is done in the leasing community. We have a fair amount of staying power and have gone through a number of cycles and survived them all.

RVB: You have offices in Colorado and Arizona but you see this program as a nationwide program, right?

WICKENHAUSER: Yes. In lending community, it’s somewhat impersonal. Ninety-nine percent of the clientele I deal with, I never meet them face to face. All work is done on the Internet and in e-mail and the electronic world we are all in. We cover the entire U.S. through the Internet. It’s a very expeditious way to handle that. You attach documents and quotes and can have it on a campground owner’s desk within 30 seconds. We’ve been covering the entire U.S. for 25 years. Now the campground industry will become a part of our world.

RVB: Walk me through how this would work for a campground owner seeking to use your service.

WICKENHAUSER: The campground owner will come with a borrowing request. Let’s say he wants to buy five park models, $40,000 each for a total of $200,000. The campground owner would ask for a quote. We say we’ll provide a quote within 24 hours, but typically it might be within the hour. We’ll e-mail the quote. If the quote is acceptable, we will send them a credit application. Within two to three days of the return application, the campground owner would receive a credit decision. If the decision is positive, we would move forward with a lease agreement. At this point, we would wait for Thor to deliver the park models. As soon as they are delivered, Midwest would pay Thor and the lease commences, with the campground paying Midwest Leasing. Typically, a lease would be for five years. At the end of 60 payments, they own the park models.

An analogy would be school buses or modular classrooms for schools. We’ve been working with school districts for years.

RVB: The initial response has been good, we understand.

WICKENHAUSER: I’m getting calls daily from interested parties, be it KOA, Jellystone, associations or sales and marketing people. The information is so new it’s just now being released. I’m hearing from marketing and sales people from Thor Industries, from people who want to better understand the program.

RVB: How do you see this business unfolding this year?

WICKENHAUSER: I have no idea, only because I don’t know if Thor knows how many people will be interested in financing their products through Midwest Leasing. I think we’ll get a good feel for this in the next six to nine months, after the summer season and some trade shows. I’ll be in Reno in April and standing next to the Thor people in their booth as they market their products to the campground owners…We’re all very hopeful it will be very productive for both of us. It’s all based on the strength of the individual campground entrepreneurs. As I told Thor Industries, each opportunity has to stand on its own two feet.

Thor/Midwest Leasing to Serve Park Industry

Thor Industries Inc. announced that it has joined with Midwest Leasing Inc. to provide the rental lodging industry with leasing and financing solutions.

Added to Thor’s previously announced association with the National Association of RV Parks and Campgrounds (ARVC), Midwest Leasing brings Thor’s team of RV lodging professionals full circle, according to a news release.

Since its inception in 1985, Midwest Leasing has provided customized and structured finance options for virtually any type of equipment. Now they will design those options to meet the specific needs of campground owners seeking lodging opportunities. All financing products can be customized and structured to meet the unique requirements with appropriate term and repayment schedules needed by today’s campground owners.

This threesome – Thor, Midwest Leasing and ARVC – is a first in the campground industry. Thor manufacturers Airstream, Breckenridge, CrossRoads RV and Keystone provide quality, ruggedized, rental lodging units customized to industry standards. Midwest Leasing provides the financing to get them on site.

ARVC’s commitment to promoting the campground industry continues. All three successful organizations combine to provide a first-time collected resource for campground owners.

According to Shane Ott, Thor’s director of campground relations, “Our commitment to meet the needs of our customers continues as we develop efficient and profitable ways of doing business. This exclusive offer from Thor sets us as the premium brand of choice for lodging accommodations. Right now the biggest need of campground owners is finding financing. This Midwest Leasing announcement could not have been timed better, as ARVC owners are looking for the opportunity to add lodging inventory before the upcoming summer season.”

Contact Ott or Fran Wickenhauser for more information on Thor’s Rental Lodging opportunities by calling (406) 670-7181 or e-mail Ott at sott@thorindustries.com.

California RV Park Occupancy Down 0.6% in ’09

The occupancy at private RV parks and campgrounds in California in 2009 was 57.8% or down 0.6% from 2008, according to a study by the California Association of RV Parks and Campgrounds (CalARVC).

The 2009 occupancy rate was down 2.7% from 2007 and down 4.9% from 2006, making 2009 the lowest occupancy for the past 10 years, CalARVC noted in its current Wednesday Morning Coffee Talk & Updates e-newsletter.

Occupancy was highest in 2005 at 63.8%, followed by 2001 at 63.5%. Statewide occupancy at 57.8% is 0.6% less than the average for the past 20 years. This slip in occupancy is widely attributed to continued high fuel prices and a slumped economy that resulted in many job losses and home foreclosures.

Occupancy decreased in eight regions, with San Francisco showing a 15.4% decline. Monthly regional averages vary in accuracy depending upon which CalARVC members respond in any month resulting in a margin of error of plus or minus two to five percentage points. The error of margin for the statewide averages is one to two percentage points.

Average statewide occupancy increased over last year in six months, and decreased six months resulting in an overall decrease of approximately a half percentage point.

Coast’s First Membership Camping Conference

• ”Successful Marketing” by Annette Bruzewski, marketing manager for Outdoor Adventures, and Pam Nelson, director of marketing and resort operations for Midwest Outdoor Resorts.
• ”Tour and Sales Presentation” by Greg Penrod, COO of Durango Riverside Resort, Durango, Texas, and Charles Youngren, director of sales for Midwest Outdoor Resorts.
• ”Gaining Efficiencies with New Technologies” with Pournoury and Peter Graffman, Ocean Canyon executive vice president and CFO.
• “‘How to Market to Non-RVers” by Penrod, Gene Addink, general manager of Midwest Outdoor Resorts, and Greg King, president, Outdoor Adventures.
• ”Hiring and Developing Successful Salespeople by Robert Topci, sales manager, Travel Resort of America-Gettysburg Battlefield Resort and Youngren.

Subjects of half-hour breakout sessions during the three days included ”Project Renaissance: Restarting Sales at Non-Selling Resorts,” ”Partnering With Camping World,” “Other Revenue Sources,” “‘Creating Positive Members Satisfaction,” “Financing and Closing the Sale” and ”Off-site Selling.”

Bruce Hoster (left), president of Coast to Coast Resorts, goes over confernence materials with Mike Pournoury, president of Ocean Canyon Properties, Texarkana, Texas.

Participants at the recent Coast to Coast membership camping conference include (from left) Joe Daquino, senior vice president and group publisher, Affinity Media; Mike Pournoury, president of Ocean Canyon Properties; Bruce Hoster, president of Coast to Coast Resorts; and Michelle DuChamp, vice president of sales and business development for Interval International.

New Hampshire May Repeal Its Campground Tax

New Hampshire’s House is considering repealing a 9% tax on campsites that took effect last July, according to WBZ-TV, Boston.

The House votes today (March 3) whether to eliminate the tax that was enacted to help pay for state spending.

Campgrounds were added to the state’s tax on hotel rooms and restaurant meals. The tax, which went into effect July 1, applies to RV and tent sites.

Supporters argue basic tent sites are assessed very little tax. But opponents say the tax will drive away campers, which could put campground owners out of business.

Industry Veteran Hittmeier Named KOA President

Pat Hittmeier, a 29-year veteran of Kampgrounds of America Inc. (KOA), has been promoted to the position of president of the 48-year-old family camping company, according to a news release.

Hittmeier has served as chief operating officer of KOA for the past eight months. The promotion was announced Feb. 26 by KOA CEO Jim Rogers.

“The depth of knowledge about our industry that Pat brought to his new job eight months ago allowed him to lead KOA at a very critical time,” said Rogers. “Pat’s leadership helped turn what could have been a very difficult year for KOA into a very positive one.”

Rogers said while the new title won’t necessarily lead to new responsibilities for Hittmeier, it will put him on “equal footing” with his peers in the camping, RVing and outdoors sectors.

“Pat Hittmeier has done nearly everything there is to do at KOA, so he brings a depth of knowledge to this position that just can’t be matched,” Rogers said. “Early in his career, he worked in our Company Operated Properties Division, learning the nuts and bolts of campground management. He later was in the field building new KOAs like the beautiful park we have in Polson, Mont. He’s also been at the helm of our Franchisee Services Department, a very complex operation that is at the very heart of the value KOA brings to its franchisee partners. He intimately understands the needs of our staff, our campground owners and our guests.”

Before being named chief operating officer, Hittmeier was vice president of sales and development, where he spearheaded the successful effort to add 50 campgrounds to KOA in just two years.

Hittmeier, a native of Litchfield, Ill., is a graduate of Southern Illinois University in Carbondale. He moved to Texas after graduation and worked with youth outdoor education programs in Houston and Waco. In 1977 he moved to Montana and became a forester for the state of Montana. In 1979, he came to Billings to be sales coordinator for the Mossmain Industrial Park before joining KOA in June 1981.

Kampgrounds of America, founded in Billings in 1962 by Billings entrepreneur Dave Drum, currently has more than 475 locations in North America. It is the world’s premiere family camping organization, hosting nearly 6 million camping families each year.

The Man Behind the First Virtual Outdoor Expo

The First International Virtual Outdoor Expo is being produced by Campground Expositions. The company’s president and the producer of the Expo, Art Lieberman, has had a great deal of experience in the production of trade shows and conventions, according to a news release.

In 1984, Lieberman produced a small show called Video Marketplace at the Adria Conference Center in Queens, N.Y., which tapped into the flourishing video rental business. The show drew over 1,100 video storeowners.

Two years later, under the name of The East Coast Video Show, the show moved to the Showboat Hotel and Casino in Atlantic City, drawing over 3,800 attendees. The trade show stayed in Atlantic City for three more years drawing, in its final appearance, over 8,500 attendees from all over the U.S. and Caribbean Islands. Lieberman sold the show in 1989 when it became apparent that the large video chain stores made it virtually impossible for the mom-and-pop stores to compete.

Throughout the early 1990s, Lieberman produced or co-produced several other trade shows in the hobby, pet and 900-call industries. In the late 1990s he produced several outdoor multi-cultural festivals in Connecticut and New York.

In 2000, Lieberman became president of MCPS of Central Pennsylvania and is now the president of MCPS for Campgrounds – a credit/debit card processor specializing in the RV campground industry. Working with Deanne Bower, vice president of sales and marketing for MCPS, the two are now co-producing the Virtual Expo.

Snow Birds Opting to Buy, Not Renting, RV Sites

Mogens Hermansen is what you’d call a working Snow Bird.

He lives in Memphis, Tenn., but spends much of the winter enjoying the sunshine in southern Alabama.

But unlike most Snow Birds, Hermansen and his wife don’t have to worry about trying to reserve a site for their 45-foot Beaver motorhome. They own an RV site at Bella Terra RV Resort in Foley, Ala. (Learn about Bella Terra RV Resort in today’s Featured Video.)

“It’s our home away from home,” said Hermanson, 59, a full-time operations manager for a global packaging company.

In fact, their RV site at Bella Terra is not their only home away from home. The Hermansens also own a site at Traverse Bay RV Resort in Acme, Mich., where they like to enjoy the summer months.

The Hermansens are part of a growing number of RVers who are purchasing RV sites at upscale RV resorts across the country, according to a news release.

“This segment of the industry is generating increasing attention from consumers,” said Linda Profaizer, president and CEO of the National Association of RV Parks and Campgrounds (ARVC) in Larkspur, Colo.

While most campgrounds, RV parks and resorts rent their sites by the night, week or month, there are growing numbers of parks that have started selling their sites, particularly Sunbelt parks that cater to Snow Birds.

Nationally, more than 25,000 RV sites at nearly 200 RV parks and resorts are privately owned, according to David Gorin, a longtime campground industry consultant and principal of MacLean, Va.-based David Gorin & Associates.

That’s still a fraction of the market, when one considers that there are more than 8,000 private campgrounds and RV parks nationwide. But it is a significant trend, and an attractive investment option for working professionals, empty nesters and retirees who want to spend all or part of the winter in the Sunbelt, said Gorin, who also owns Holiday Cove RV Resort in Cortez, Fla., which offers RV sites for sale.

While prices for RV sites vary from roughly $50,000 to $250,000 or more, depending on the park’s location and amenities, the numbers make sense for Snow Birds who plan to spend extended periods of time in the Sunbelt.

“If someone comes down and spends $3,000 or $4,000 a year every winter in Florida, and let’s say they come down five years, they have already invested $20,000 in Florida,” said Eduard Mayer, president and CEO of Elite Resorts Management Inc., which has developed several RV resorts in Florida that sell their sites. On the other hand, many consumers do not want to commit themselves to a single location, which is why most people rent RV sites, Profaizer said.

Most RV resorts that sell their sites also set up rental pools, which enable RV site owners to generate income from their campsite when they’re away. The resorts take a percentage of the rental income to cover their management services.

The economics of modern RV resort development are also leading growing numbers of private park developers to build upscale resorts that sell their sites. “When you consider the cost of land in attractive locations, the cost of design, engineering, permitting and construction costs, it’s almost impossible to justify building a new park for a rental market only,” Gorin said.

And while the downturn in the economy has taken a toll on RV site sales, some RVers have found that they can purchase RV sites through their Individual Investment Accounts (IRAs) and 401K plans, said Tripp Keber, COO of Bella Terra Resort, which recently announced plans to begin building its second phase. “With the income that can be realized through our rental management program and the lot’s appreciation, this represents a great investment,” Keber said.

Many RV enthusiasts also like the upscale nature of RV parks and resorts that sell their sites as well as the convenience of owning their own site.

“The advantage of owning our own site is we can come and go as we please,” said Emile LaChance, an Ontario, Canada, resident who recently purchased a site at Silver Palms RV Village in Okeechobee, Fla. “If you’re renting a site,” he added, “you’ve got to be on a schedule.”

Looking to the future, Gorin said the concept of owning an RV site will continue to grow in popularity, especially in highly attractive vacation destinations and in resort locations within a two-hour drive of major cities. Gorin added that the development of new, upscale RV parks and resorts that sell their sites will also create a new supply of modern RV sites for the rental market.

Carolina RV Park Owners Meet in Myrtle Beach

Dozens of owners and operators of private campgrounds in North Carolina and South Carolina are meeting at Lakewood Camping Resort in Myrtle Beach, S.C., to talk about the status of their industry and the latest trends, according to South Carolina Now.

They’re attending the annual Carolinas Association of RV Parks and Campgrounds Convention and Expo. The event started Sunday and concludes today.

“This industry is somewhat recession proof,“ said Barb Krumm campground marketing director at Ocean Lakes Family Campground, also in Myrtle Beach, “The campgrounds have not suffered as hoteliers may have suffered; we have only seen a slight reduction and in some cases an increase in business.“

Campers can expect to see changes like more concrete pathways, a lot of landscaping and even access to the latest technology like Wi-Fi connections.

“We manufacture park model cabins and cottages and we are here to meet the park owners and show them what are product is and how it an help them in their park,“ said Andy Davis with Pinnacle Park Homes. “This allows the campgrounds to reach out to families that may not have an RV and not sure of they want to get into the camping lifestyle or not but it allows them to go camping. We are always wanting to stay on the cutting edge and make sure we are where we need to be to satisfy the needs of the families and the young people”

Krumm said that Ocean Lakes will be going “green” this year, meaning campers can expect to use amenities such as solar-heated water bathhouses.

The campground is the first in the area to use this technology as a way to save electricity and minimize water waste.

Sunbelt RV Parks Diversify Their Offerings

The stereotypical image of Snow Birds is a group of older adults lounging around a swimming pool, soaking up the sun.

But while that image may apply to some Snow Birds some of the time, retired Baby Boomers who spend the winter at the larger RV parks and resorts across the Sunbelt are more likely to be taking classes in Tai Chi or Qi Gong, refining their artistic skills with wood carving, ceramics or calligraphy or attending daylong seminars on music and politics by professors from Ivy League universities, according to a news release. Some RV parks even have their own theatrical and choral groups and host their own arts and crafts shows and sporting tournaments.

“Today’s retired Baby Boomers are nothing like retirees of the World War II generation,” said Linda Profaizer, president and CEO of the National Association of RV Parks and Campgrounds (ARVC). “This is a very active group that thrives on activities, classes and entertainment.”’

Similarly, today’s RV parks and resorts are nothing like the Snow Bird parks of a generation ago. In fact, RV parks and resorts that cater to retired Baby Boomers increasingly offer classes, activities and special events to keep their snowbird guests entertained throughout the winter months.

Consider Palm Creek Golf & RV Resort in Casa Grande, Ariz. The park offers numerous recreational activities, including aerobics, Pilates, tai chi, yoga, lawn bowling, softball and volleyball, while those who like to dance can take classes in everything from cabaret dancing to line, square and Western dancing.

Palm Creek also offers more than a dozen arts and crafts classes, including ceramics, pottery, sewing, oil painting, watercolor painting, silver smithing, stained glass and wood carving. In fact, its winter guests produce so many high quality craft items that the resort now has a monthly craft fair.

“We’re not very sedentary here,” said Wendell Johnson, general manager. “I’d say probably 70-80% of our guests pursue something here other than lying out by the pool.”

Voyager RV Resort in Tucson, Ariz., offers similar classes and activities, as well as Qi Gong, a Chinese exercise class, in addition to a class where guests can learn choreographed spirit dance, jazz dance and free form dance.

Last year, Chicago-based Equity LifeStyle Properties, which owns RV resorts throughout the Sunbelt, launched a lecture series at several of its parks in Florida and Arizona that featured professors from Harvard and Yale who talked about a variety of topics, from the music to Mozart to the role of women in politics.

The lecture series was so popular that the program has been expanded this year, with topics including “Music And The Brain: Why We Like The Music We Like,” by Professor Craig Wright of Yale University; “FDR And The Path To World War II,” by Professor Richard Pios of Columbia University and seminars on Gershwin’s most popular songs by Professor Orin Grossman of Fairfield University.

Randall Hendrickson, manager of Leaf Verde RV Resort in Buckeye, Ariz., said organized activities provide opportunities for park guests to forge strong friendships with one another, while stimulating repeat visits to the park.

“At Leaf Verde,” he said, “we have augmented the activity schedule to include water aerobics, yoga, water volleyball, casino trips and bus tours. These have been extremely well received, and our returning guests are amazed at all there is to do. Literally every day there is an activity available to serve all interests.”

Meanwhile, The Great Outdoors RV Resort in Titusville, Fla., offers its winter guests daily activities, including Zumba, kickboxing, hi-low dance aerobics, pilates, total body toning, yoga and group meditation as well as classes in calligraphy, photography, oil painting, and rubber stamping. The park also has formed clubs for virtually every type of interest, from knitting to kayaking to motorcycling.

Many private park operators now see activities being an essential part of their business strategy.

“If you’re trying to attract Snow Birds, you’ve got to have activities,” said Jolene Wade, managing partner of the Fountain of Youth Spa and RV Park in Niland, Calif. Her park, located in the Southern California desert just east of the Salton Sea, features natural hot springs and some of the best winter weather in the country. But even with those attractions, she offers numerous activities, including radio control aircraft flying, a clown school, bocce ball, therapeutic and water exercise classes and dances with live music.

Many parks have also expanded their entertainment offering and now host frequent dances and even dinner shows with professional entertainers.

“The last time I did a luau I hired an act out of Las Vegas to perform,” said Doreen Fuller, activities director for Rincon Country RV Resort in Tucson. That’s a sharp contrast to a generation ago, when a big social event at an RV park was a potluck.

“In the ’80s, people had less money to spend,” Fuller said. “They were from the Depression era and they didn’t let loose of their money very easily.

So a $4 or $5  ticket in those days was a lot of money. Today, we still have $5 and $6 tickets, but we also have $12 and $15 tickets for the bigger shows. I thought that was going to hurt us this year, but we haven’t had any problem selling tickets to our shows.”

That’s not to say that retirees are not interested in saving money. In fact, the activities program at Golden Village Palms RV Resort in Hemet, Calif., is drawing its largest crowds ever, partly as retirees scale back their investments in entertainment options outside the RV parks and resorts where they spend the winter, said Greg Sidoroff, operations manager for La Jolla, Calif.-based SunLand RV Resort, which owns the Hemet park.

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