RV Parks and Campgrounds

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 4,200 RV parks and campgrounds in the US provide sites to accommodate campers and camping equipment, including tents and trailers. Major revenue categories include fees for RV and tent sites and room or unit accommodations. Other sources of revenue include meals, snacks, and beverages; membership fees and dues; other rental fees; and groceries.

Seasonality

Sales can be highly seasonal, depending on market-specific dynamics and weather conditions.

Dependence On RV Ownership

RV ownership trends can affect sales for the RV park industry.

Industry size & Structure

The average RV park and campground company operates out of a single location, employs 12-13 workers, and generates about $1-2 million annually.

    • The RV park and campground industry consists of about 4,200 firms that operate 4,500 establishments, employ about 55,000 workers and generate about $7 billion annually.
    • The industry is fragmented; the top 50 companies account for 27% of industry revenue.
    • The industry includes chains, franchises, and independent operators.
    • Commercial parks and campgrounds are privately-owned. Public facilities are owned by government entities, such as the National Park Service and USDA National Forest Services.
    • Large companies include KOA (Kampgrounds of America) and Thousand Trails.
                              Industry Forecast
                              RV Parks and Campgrounds Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Nov 1, 2022 - Winter Camping Expected to Rise
                              • The number of households that plan to go camping this winter is expected to increase over 2021 levels, according to the October edition of the KOA Monthly Research Report. The latest KOA report forecasts that 8.2 million households will camp this winter, marking a rise of 19% compared to the 6.9 million who winter-camped in 2021. Of those surveyed for KOA’s October report, 37% said they probably or definitely take a camping trip this winter. KOA said the rise in winter camping is indicative of the recent increase in camping’s popularity, which has also reduced the seasonality of camping participation.
                              • Wholesale prices for used RVs are on the rise, according to a November report by vehicle appraisal guide publisher Black Book. For November, the average wholesale price for motorized RVs sold at auction was $74,069, up 7.3% from the prior month but down from $74,990 in November 2021. The average wholesale price for used towable RVs was up 3.3% to $21,217 in November but was down from $22,009 the same month in 2021.
                              • US RV sales are projected to fall in 2022 and 2023, according to the most recent quarterly forecast prepared by ITR Economics for the RV Industry Association (RVIA). For 2022, total wholesale RV shipments by manufacturers are expected to be about 498,800, which would be a 16.9% decline from 2021. The drop in RV sales is somewhat unexpected and follows a period of strong sales. In 2023, wholesale RV sales are expected to fall further to about 419,000, down about 16% from the forecasted total for 2022. A slowing economy, high inflation, and rising interest rates are pressuring consumer budgets and tempering spending for big-ticket discretionary purchases like RVs.
                              • RV parks are increasingly following the lead of the hotel and resort industry by introducing pricing strategies that maximize revenue, according to RVtravel.com. So-called “yield management” efforts unbundle services and prices them individually to boost revenue. Despite reduced foot traffic due to the pandemic, Disney theme parks have grown revenue by charging extra for items that used to be included in the overall cost of admission, according to The Wall Street Journal. RV parks are expected to follow suit as they compete with other travel destinations for consumer dollars.
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