The recreational park trailer segment of the RV industry took its hits just like traditional RV builders during the Great Recession. And its recovery may take a bit longer than the mainstream towable market.
That’s according to William Garpow, executive director of the Recreational Park Trailer Industry Association (RPTIA), who says park models’ customer base is the cause.
”The reason is, our particular consumer is 55 to 70 years of age,” Garpow told RVBUSINESS.com. ”They are facing retirement and their 401(k) took a 35% dip and their house dropped 30% in value. They haven’t got the time to make back the dollars they had before they retire.
”As a consequence, they still may want to get into a park trailer, but they have to do everything they can to build their nest egg while they are still working.”
Garpow reported that shipments of park trailers reached a high of about 12,000 units in 2006 before falling to about 6,0000 units last year. ”Still, that wasn’t as bad as other segments of the industry and now 20% of what we lost has come back,” he said. ”But it’s slow and gradual.”
One thing going for park trailer dealers during the economic turbulence, Garpow said, was that most weren’t under pressure from lenders to bring down large inventories. ”Park trailers traditionally are not inventoried,” he said. ”The products that we are shipping are custom built, so we weren’t affected by that.”
He said RPTIA, with headquarters in the Atlanta suburb of Newnan, Ga., ”hasn’t lost any significant number of manufacturers,” during the downturn and that business right now ”is steady and it seems to be fairly decent.”
A factor working in favor of the park trailer segment’s recovery is an emphasis on adding park models as rental units at rates several times higher than those charged for regular campground sites by Kampgrounds of America Inc. (KOA), Jellystone franchiser Leisure Systems Inc. and other parks.
”We identified this has a very strong potential market about 15 years ago,” Garpow said. ”The rental part has really come alive in the last three or four years.”
For campgrounds in designated rural areas that want to expand their park model inventory, Garpow said the United States Department of Agriculture (USDA) is a viable source of guaranteed financing.
The Virginia Campground Marketing Conference, sponsored by the Virginia Campground Association (VCA), will be held Oct. 18-20 at American Heritage RV Resort in Willliamsburg, Va.
The 2 1/2-day meeting will be entirely devoted to discussing marketing tools and techniques for the 21st century, according to a news release. As the park industry continues to enjoy significant growth and public interest, the industry is becoming increasingly competitive and marketing is considered the key to success for individual parks.
The major speaker at the conference will Blake Ashdown, one of the park industry’s most successful entrepreneurs.
Blake has started 15 businesses over the past 30 years, including 10 RV resorts and campgrounds. He received the “Professional of the Year Award” from the American Resort and Development Association and is a registered resort professional. Ashdown was one of the creators of the Encore brand of RV parks and was the architect of its successful marketing and branding program. His most well-known RV park project is Tropical Palms Fun Resort in Orlando.
For the past four years Ashdown has been a professor at the Eli Broad Graduate School of Management at Michigan State University where he taught marketing and business strategy. He is a frequent speaker at industry conventions, conferences and business meetings.
He is the president of SureVista Solutions, a marketing research firm that provides new marketing tools designed to increase revenues.
“Blake has an incredible appreciation for what it takes to market an RV park in today’s rapidly changing world,” said David Gorin, VCA executive. “We’re thrilled to have him as the featured speaker at this first-ever VCA marketing conference. VCA parks have had a good 2010 camping season and parks are improving their game significantly. Staying in the game with great competitors in the Virginia market, requires a real understanding of marketing to today’s consumers. Blake will be a great inspiration and help to park owners who are ready to step up for success.”
In addition to Ashdown, special guests and speakers will include Linda Profaizer, president and CEO of the National Association of RV Parks and Campgrounds (ARVC), who will share the lessons she’s learned about the park industry in her 40 years in the business. VCA will honor and recognize Profaizer’s long industry career as she prepares to retire at the end of the year.
Mary Arlington, owner of High Plains Camping in Kansas, will also be a special guest. Arlington has fine-tuned the use of social media to build her small campground into a powerhouse small business with national recognition. Affiliated with Best Parks in America, High Plains Camping has received a Guest Review A rating for two years running and is gaining RVer attention throughout Kansas and Middle America. She will discuss her successful social media campaign and how she’s used the cost effective outreach to grow her business.
John Rust and daughter Carol Rust, Yogi Bear’s Jellystone Park, Luray, Va., will also speak, addressing two marketing programs they created during 2010. One program offered a camping discount through Groupon, an Internet marketing program that is sweeping the country in some metropolitan areas. In addition, the Rusts launched a weekly e-mail newsletter to potential and past guests offering specials and most importantly advising on availability for the coming weekend and future weekends. Both of these programs, Groupon and e-mailing, will be part of a panel discussion on new marketing techniques and tools.
The conference is open to park owners throughout the Mid-Atlantic and Northeast. For information on program details and registration, please email email@example.com or call David Gorin at (703) 448 6863. Camping is available at American Heritage RV Resort and hotel accommodations are available nearby.
This week’s ARVC Business Forum, held on the campus of Keystone RV Co. in Goshen, Ind., featured a typically lively give-and-take among the leadership of the National Association of RV Parks and Campgrounds and some of the nation’s key campground vendors.
Forum members met in conjunction with the Recreation Vehicle Industry Association (RVIA) Committee Week and Annual Meeting functions held not far away in downtown South Bend. The week’s agenda also included an industry party in recognition of what RVIA has designated in 2010 as the RV industry’s centennial.
The ARVC Business Forum brings together members of the ARVC Executive Committee and key players in the RV parks and campground business to discuss topical issues.
Shane Ott, director of campground relations for Thor Industries Inc., Keystone’s parent company, who helped orchestrate the meeting at Keystone, said the forum meeting at an RV company, a first for the forum, will help narrow “the huge gap” between the campground and RV industries. “There is no reason we shouldn’t do this more often,” he said.
A few forum highlights:
Mark Anderson, former ARVC chairman and owner of Camp Chautauqua Camping Resort, Chautauqua, N.Y., reported that his park and many others in the East “had almost a perfect Memorial Day weekend,” providing “a great start” to the season. The summer’s outlook for the Northeast is good as travel is up, he added. He noted that while the state of New York is “broke,” the governor found funds to reopen the state parks, which Anderson considers “an important baseline to private campgrounds.”
Vic Nolting, vice chairman of Leisure Systems Inc., franchisor of the Yogi Bear’s Jellystone Park Camp-Resorts, Milford, Ohio, began by summarizing, “In general, things look oh so much better than last year.” He then deferred to LSI’s COO, Rob Schutter Jr., who went into greater detail. Schutter echoed Anderson’s holiday observation. He said business in the Northeast is “leveling out” after “a disaster last year,” due to weather.
Schutter, noting that Yogi operators are seeing an upturn in campers’ ancillary spending after a 2%-3% downturn in such spending last year, reported that the rental market at Jellystone Parks is “through the roof,” thanks in part to its non-dependence on good weather and the growing number of visits of campers new to the Jellystone system.
LSI’s rental business was up 8% in 2009 and he expects another rise this year. The rental business, which puts campers into lodges and cabins, is bringing a lot of non-traditional or first-time campers, added Nolting. They explained that many Jellystone Parks maintain good working relationships with area chambers of commerce and hotels, which also spurs business. Cabin rental rates were $145 a night in 2009 and have been raised by $10 a night for the 2010 season, said Schutter, adding that LSI opened its first company-owned park this year in Bloomington, Ind.
Cindy Halley, publisher of the Trailer Life RV Parks and Campgrounds Directory and vice president of Good Sam Club marketing, Ventura, Calif., reported that TL’s rep teams are well underway in their collection of data and advertising sales for the 2011 directory. Team members “are very upbeat and expect a better year overall,” she said. On the club side, membership growth is exceeding forecasts and currently totals about 950,000. Good Sam Club members average 62 years of age and are typically retired, empty nesters. However, she added, the club is always trying to recruit younger members.
Eric Stumberg, president and co-founder of Wi-Fi provider TengoInternet, Austin, Texas, reported that TengoInternet’s acquisition of Nomad ISP is complete with Nomad’s clients integrated into Tengo’s in May, bringing its market penetration to some 800 parks and between 67,000 and 100,000 guests a month, depending upon the season.
Wi-Fi remains a key criteria in RVers’ decision on where to camp, he noted. He sees mobile point of sale terminals, such as an ice cream cart that accepts credit card swipes, becoming the next popular phase in parks and campgrounds. He is targeting 25% growth for 2010.
David L. Berg, ARVC chairman and owner of the Red Apple Campground in Kennebunkport, Maine, said business appears to be “back to where we used to be.” He had sold out his 140 sites for the July 4 holiday by Memorial Day and his tent and popup trailer sites sold out first for the first time ever.
Berg, at the same time, said he remains “boggled” by the growth and popularity of the cabin business. He charges $120 a night for a cabin, even though “the motel down the street charges $29.” He can explain the willingness to pay more because customers “want it all today, the safety, the experience…” He also is getting into the RV rental market, charging about $1,000 a week to rent a unit on-site.
Al Johnson, president of Recreational Adventures Co., an 11-park chain based in Hill City, S.D., reported “an exceptional Memorial Day” and stated that nine of his 11 KOA-affilitated properties are ahead of plan so far this year. He has begun to replace aged cabins with new park models. He is putting on hold an overhaul of RV sites until he can better determine size requirements for the next RV generation. He, too, saw more guests with tents and folding camping trailers last year, but said it’s too early to tell whether that trend will continue this year.
David Gorin, who wore multiple hats to the forum as a campground consultant, ARVC lobbyist, park owner and state association director, reported that his Holiday Cove RV Resort in Bradenton, Fla., experienced a 25% increase in business last year, with his rental business up 20%-25% annually.
Gorin says he sold approximately half of the lots for sale in his park in the last 19 months. As director of the Virginia Campground Association, he said that state’s parks are looking for a good year, but that they’re concerned about whether the Gulf oil spill will make its way eventually up the East Coast. Meanwhile, Gorin says his Best Parks in America network has grown from 22 to 63 parks in the past year, has recently finished a long-term strategy session and will be publishing its first print directory. Finally, Gorin announced that he will be building a new 250-site RV park in Palmetto, Fla.
Ann Emerson, ARVC Business Forum chairwoman and vice president of Woodall Publications, publisher of the Woodall’s North American Campground Directory, Ventura, Calif., said sales consultants are reporting overall that most parks are doing well. In general, parks near metro areas are still faring better than those in remote areas. And there’s a serious concern among tourism-related business operators — parks among them — in many Southern and Southeastern locales regarding the long-term impact of the Gulf oil spill, prompting some owners to defer decisions on marketing expenses.
Emerson began a discussion on the explosion of social media in the campground business. At her parent company, Affinity Group Inc. (AGI), parent company of RV Business and Woodall’s Campground Management, almost all the websites have a Facebook page and each publication has at least one staff member assigned to increase its social media presence and AGI is developing a SmartPhone “app” for both of its campground directories. This discussion elicited comments on mobile marketing, which fueled a wider discussion on the explosion of mobile phone use in society. Some 90% of all U.S. homes have cell phones, and a significant percentage of Woodall customers have SmartPhones, she said. Stumberg noted that one study showed that almost as many people today access the Internet via their SmartPhones as from personal computers.
Bruce Hoster, president of Coast to Coast Resorts, the membership camping wing of AGI, said, “We think membership camping is due for a renaissance.” He cited a number of ways Coast to Coast is attracting new parks and members to the concept. As an aside, he observed that membership campgrounds are finding new revenue streams by developing storage facilities for their members’ RVs while they are not camping. For example, one membership park developed a 7-acre storage facility and realizes an estimated $1 million in revenue in annual storage fees. He reported that Camp Club USA, AGI’s discount camping club, “has come back strong after seeing a slight dip during the recession” with high renewal rates and is up to nearly 50,000 members. Coast to Coast, which has taken membership camping under its wing, sponsored a membership camping conference in February in Las Vegas and will sponsor another in February in New Orleans. He is working to make inroads with developers of hotel and condo complexes to consider integrating campgrounds into their projects, he said.
Pat Hittmeier, president of Kampgrounds of America Inc. (KOA), Billings, Mont., said camping was “soft” over the winter, hindered by cold weather in its Southern campgrounds. But it’s taken off since May and was up 7% through Memorial Day. KOA is projecting an 8% increase through Labor Day, said Hittmeier, adding that use of the Internet to make reservations is up 12% over last year, a reflection of more business in general and the migration of campers to the Internet.
KOA has 4,000 units in its lodging pool and that business is strong, he said. Lodges make up 13% of the total KOA sites, but the company is aiming to raise that figure to 20% at 50% of its campgrounds. KOA also is looking to increase its first-time visits, which now make up 15% to 19% of its total guests.
ARVC loyalist Ian Steyn, owner of Jellystone Castle Rock Campground, Castle Rock, Colo., noted that his business is up 38% year-over-year, and 2009 was a good year for his business. He discussed an integrated approach to promoting the outdoors with other hospitality businesses in his community seeking to make it the epicenter for outdoor recreation in his state.
Larry Weaver, park model sales manager for CrossRoads RV, Topeka, Ind., briefly outlined the preferred park model program his parent company, Thor Industries Inc., has established with ARVC. Weaver stressed that campground owners should make sure they buy “ruggedized” park models for their rental units and refrain from features such as carpeting that will not hold up well under the rigors of long-term use.
Leisure Systems Inc., the franchisor of Yogi Bear’s Jellystone Parks, has temporarily waived its franchise initiation fees as part of a strategic move to expand the company’s presence in the family campground business, according to a news release.
The promotion, which is being offered as the 75-location Jellystone-park chain celebrates its 41st anniversary, is being promoted as Peter Yesawich and other travel industry experts forecast continued growth in demand for family friendly vacations.
“Travel industry research shows continuing strong interest in family travel, and we believe that modifying our franchise offer will be an effective way to encourage high-quality, family-oriented campgrounds to leverage our brand name and business model to grow their businesses,” said Rob Schutter, Leisure Systems’ COO.
Five independent campgrounds have already signed agreements to join the Jellystone Park chain in time for this year’s spring and summer travel season, and more are expected to sign on later this year, Schutter said.
The newest Jellystone Parks are located in the following cities:
- Bloomington, Ind.: Cedar Ridge Camping Resort, a five-year-old former private membership resort, will reopen April 16 as Yogi Bear’s Jellystone Park at Lake Monroe. The park, which features 92 RV sites, 12 cabins and forested areas for primitive tent camping, is currently undergoing $200,000 worth of cosmetic improvements.
- Burleson, Texas: Rustic Creek Ranch, which recently doubled its size to include 248 RV sites and 37 fully furnished luxury cabins, will become the North Texas Jellystone Park.
- Donalsonville, Ga.: The park, formerly known as Trail’s End Resort & Marina, will join the Jellystone Park chain on April 1. The park, which is currently undergoing an expansion, will feature 39 RV and tent sites, nine cabins and six floating condos on Lake Seminole, which is popular with bass fishing enthusiasts.
- Forsyth, Mo.: Shoal’s Bend RV Resort will officially join the Jellystone Park chain on April 1. The park has recently undergone more than $80,000 in improvements, including larger campsites, upgraded campsites with patios and outdoor chimineas, new landscaping, remodeled bathrooms and a new dog walk. A 20- by 60-foot outdoor pavilion is also expected to be completed by April 1.
- Swansea, S.C.: River Bottom Farms RV Resort & Campground will become the first Jellystone Park in South Carolina. The 43-acre park on the North Edisto River has five stocked fishing ponds and 70 campsites.
Schutter said the franchise promotion is available to private campgrounds and RV parks that meet Leisure Systems’ facility requirements, which include a swimming pool, pavilion and playground.
By anyone’s standards, 2009 has been a tough year for the U.S. economy.
But while most Americans have tightened their budgets in response to job losses, difficulties obtaining credit or simply because of economic uncertainties, campgrounds and RV parks have remained economically resilient, according to a news release from the National Association of RV Parks and Campgrounds (ARVC).
“We are very grateful for the level of business we’ve had,” said Jayne Cohen, president of Adventure Bound Camping Resorts in Center Harbor, N.H., which owns and operates nine RV resorts in New Hampshire, Massachusetts, New York, New Jersey, Pennsylvania, Tennessee and Arizona. “When we closed down our November numbers, we were even with last year in revenue.”
That’s a significant accomplishment, Cohen said, not only in this economy, but given the fact that most of her company’s parks are located in areas that suffered unusually cold and wet weather last summer. “We strongly feel that if we had not had bad weather, we would have been ahead of last year’s figures,” she said.
Most of the nation’s campgrounds, in fact, reported business levels that were stable or slightly ahead of last year’s figures, and most private park operators expect their business levels to remain steady or experience continued growth next year.
“I’m very optimistic and very grateful for how we finished out this year,” said Mark D. Anderson, president of Camp Chautauqua Camping Resort in Stow, N.Y. “Our reservations are looking very good for next year. We’re already just about full for Fourth of July weekend. And to be almost full at this time of year is pretty good.”
Across the country, Harriette Groth of SunBasin RV Park in Ephrata, Wash., said she is already receiving reservations for Memorial Day weekend next year. “Two groups have already called in for reservations for Memorial Day weekend. We feel that’s encouraging,” she said.
David L. Berg, ARVC chairman, said he is also optimistic about the level of consumer interest in camping next year. “I think we’re looking across the country to an improved camping season next year,” he said. “The state of the affairs of our economy has not hurt the camping business at all.”
Revenues at Berg’s own park – Red Apple Campground in Kennebunkport, Maine. – were up 8.5% this year, compared to last year, and Berg expects the upward trend to continue.
“Our reservations for next year are at least as strong right now as they were a year ago,” said Jim Ozburn of Falcon Meadow RV Campground in Falcon, Colo. “I really think the camping business is going to get better. As long as gasoline and fuel behave, those who do the most traveling will still do it.”
Ozburn added that he, too, is already receiving reservation requests for next year, which he finds encouraging.
Carolyn Strong, co-owner of Sundermeier RV Park and Conference Center in St. Charles, Mo., is also receiving reservations for next year, including reservations from large rally groups. “We had a tremendous increase in business this year,” she said, adding that as of mid-December her park was already running about 10% ahead of its business levels in both 2007 and 2008.
Some Sunbelt parks are also reporting strong reservation levels for this coming winter. “Right now, we just finished the best November we’ve ever had, and our advance bookings from now through March are probably 20% over last year,” said Doug Shearer, who opened Parkview Riverside RV Park in Concan, Texas, in 2001. He expects this winter to be the best winter season he’s ever had.
Some park operators remain cautious, however.
Bruce Aljets, who owns Yogi Bear’s Jellystone Park Camp-Resort in Sioux Falls, S.D., experienced a 17% jump in business this year, despite the recession. “I don’t know what to expect next year,” he said. “Being in South Dakota, we generally lag behind the rest of the country. But I’m going to hope for the best.”
Cohen of Adventure Bound Camping Resorts, for her part, said her company is optimistic but cautious about the future. “We’re very enthusiastic and we’re very pleased with the results of this year. But we’re not taking anything for granted, either.”
Leisure Systems Inc. (LSI), the franchisor of Yogi Bear’s Jellystone Parks, is temporarily waiving its $20,000 franchise initiation fee in an effort to make it easier for family-friendly campgrounds to join its network.
The promotion, which is being offered as the 70-location Jellystone Park chain celebrates its 40th anniversary, is being promoted as Peter Yesawich and other travel industry experts forecast continued growth in demand for family friendly vacations, according to a news release.
“Travel industry research shows continuing strong interest in family travel, and we believe that modifying our franchise offer will be an effective way to encourage high-quality, family-oriented campgrounds to leverage our brand name and business model to grow their businesses,” said Rob Schutter, LSI president and CEO.
Campgrounds signing a seven-year franchise agreement will get: a 10-foot Yogi Bear statue; a Yogi Bear costume; a facility sign package; travel and expenses for two people to attend “CAMP” (LSI’s proprietary training program) and “CARE” (LSI’s recreation training program.)
As a special promotion in conjunction with the National Association of RV Parks and Campgrounds (ARVC) InSites Convention & Outdoor Hospitality Expo, LSI is also offering $1,000 worth of free Yogi Bear merchandise to each campground that signs a franchise agreement within 90 days of the convention, which will be held Nov. 9-12 in Orlando, Fla. A campground must visit the LSI booth at the InSites tradeshow to be eligible.
To sweeten the deal further, all new franchisees joining the franchise in 2010 will also be eligible to win a Boo Boo costume, valued at $3,100.
Schutter said the promotions are available to private campgrounds and RV parks that meet LSI’s facility requirements which include a swimming pool, pavilion and playground. For more information, call (866) 928-9644 or visit www.campjellystone.com and click on Franchise Opportunity.
Launched in 1969, the Yogi Bear’s Jellystone Park Camp-Resort system is the second largest chain of campgrounds in the United States, boasting more than 70 campgrounds with over 15,000 campsites in 27 states and Canada. Jellystone Park Camp-Resorts, which focus on the family market, are among the best campgrounds in the industry with a quality reputation for being fun, friendly, clean and service-oriented parks. On average, they have higher revenue per site night and a longer average stay than that experienced by other campgrounds – independent or franchised. Additionally, each Jellystone Park is themed with Yogi Bear elements providing instant recognition and consumer appeal. It is truly a place “Where You Camp With Friends.”
Yogi Bear Jellystone Parks are franchised through LSI, a wholly owned subsidiary of the Park River Corp., Cincinnati, Ohio.
The Yogi Bear’s Jellystone Park franchise is celebrating its 40th anniversary by hosting a video contest for campers to capture how they have fun at Jellystone Park. The grand prize is $10,000.
“Our mission is to foster a fun family experience that creates lasting memories,” said Michele Wisher, director of marketing for Leisure Systems Inc., the franchisor of Jellystone Park Camp-Resorts. “We’re excited to see how our campers enjoy our parks and to share that enthusiasm with others.”
The videos must be taken at any of the 71 Jellystone Park Camp-Resort locations and be 30 to 90 seconds in length (maximum length is 3 minutes.) Videos can also be comprised of various still photos in a slideshow.
Each person submitting a video to www.jellystonefun.com is eligible to win special Jellystone Park gift baskets full of Yogi Bear souvenirs during weekly prize drawings. Some baskets may include a free night of camping at a Jellystone Park.
For the grand prize, contest participants are encouraged to forward their videos to friends to generate votes. The five videos receiving the most votes will be entered to win the $10,000 grand prize. Finalists will receive a Jellystone Park gift basket full of Yogi Bear souvenirs and a free weekend stay at a Jellystone Park. The grand prize winner will be selected by Leisure Systems Inc. and announced in October.
The contest started May 23 and runs to Sept. 8.