Campground and RV Parks: Industry Highlights
Buying a campground or RV park is an incredible way to translate your love for the outdoors into an entrepreneurial endeavor. It takes a lot of hard work, careful consideration of your own skills, as well as a firm knowledge about the industry and your target customers. If you’re an outdoors person, love nature, and want to spend your time in the manner of your choosing, buying a campground or RV park might be the business move for you.
Is there a strong demand for campgrounds and RV parks?
Due largely to the influx of retiring baby boomers, combined with millennials' keenness on connecting with nature, this industry has seen steady growth through the last five years, and will likely continue its expansion streak.
- Overall industry growth. From 2015 to 2019, the market for campgrounds and RV parks has grown by 1%, according to an industry market report conducted by IBIS World. While that may seem like a low number, it simply means the growth is slow and continuous. Businesses are keeping up with the demand without being overwhelmed.
- Demand driven by baby boomers. Census data statistics show that an average of ten thousand baby boomers are retiring every day, and many of them look to spend their retirement traveling across the continental United States in an RV. The latest count puts the number of RVs owned at 8 million- and they all need somewhere to live as they travel.
- Millennials entering the marketplace. Millennials are the lock to pick in order to continue the growth of this industry as more and more of them are looking for an escape into nature. Millennial parents are sure to translate this love to their children, most people go camping with at least one other generation of their family.
Where is the biggest market for campground and RV parks?
- While the market for campgrounds and RV parks would be any place beautiful and worth admiring, the most reserved spots are on the outskirts of national parks according to the North American Camping Report. Campers value the accessibility and proximity to the 58 national parks that the U.S boasts- not to mention more than 10,000 state parks.
- Surveys from the same report shows that over three-fourths of all campers stay within 200 miles of their homes- meaning the market for campgrounds and RV parks is expansive, and all over the country. It will be up to you to choose where to build your new business, whether you want to continue to live in your state or invite change into your life and move elsewhere.
- The Outdoor Industry Association reports the western seaboard ranked the highest in camping occurrence at 63%. The northeast part of the country ranks the lowest, at 52%. Logically, this seems to fit given the greatly differing weather patterns in these parts of the country.
How do campgrounds and RV parks generate their revenue?
There are various and differentiating revenue streams for both campgrounds and RV parks. The priorities of baby boomers and millennials are different, and to maximize your own revenue you will have to satisfy them both.
- Understanding the needs of baby boomers. When baby boomers are out in nature, they are looking mainly to relax and maximize their enjoyment. They spend a lot of their budget on food, beverages, and campground fees. Baby boomers show a preference towards RVs, and the comfort they bring to being in nature. One of the drawbacks that campgrounds have- which deter RVers from picking them- are the restrictions on extending their vehicle. Buying an RV park which has the resources to allow this will greatly appeal to your target demographic.
- Understanding the needs of millennials. On the other hand, millennials are showing a preference towards campgrounds that offer WiFi and full amp hookups, spending more of their budgets towards campsites that offer glamping, or glamorous camping.
- Catering to the needs of your customers. Surveys show that people like to partake in different activities when they’re out in nature, such as fishing, canoeing, and mountain biking. The amenities you offer will help you establish your brand.
- Learn everything you can about your chosen campsite or RV park. There is a lot of money to be saved by knowing your land inside and out. In fact, a majority of your time as owner-operator will be spent tending to the land, fixing things that have come apart, and finding ways to add more amenities for your customers. For example, by knowing technical details of how power lines run through your land, you may be able to fix a small issue by yourself, or at the very least, know what a fair price would be for a contractor to charge you to fix it.
Among eligible households, census data shows only 42% of households are non-campers that don’t participate in the outdoors industry at all. Meaning, more than half of the households surveyed are camping. Specifically, 44% of households are active campers, going camping more frequently, multiple times a year. Suffice to say, the art of camping and RV tripping lives on, slowly dazzling new generations.
Buying an RV park or campground is can be a good investment, but expect a lifestyle change. If you’re looking for a way to bring meaning into your life and spend time connecting with nature, buying this business will help you towards it. Even better, buying a campground or RV park that’s already listed for sale can be a leg up, and since most are family businesses, you will likely be supported throughout the journey. Now that you've gotten a head start on the research, it's time to browse for campgrounds and RV parks for sale!
Sources:
Agredano, Rene, and Dave Helgeson. “New Generation of Campers Demand Free WiFi in the Outdoors.” RV Life Magazine, 30 July 2015, rvlife.com/free-wifi-camping-survey/.
Gernon, David. “'The RV Space Is on Fire': Millennials Expected to Push Sales to Record Highs.” CNBC, CNBC, 30 July 2017, www.cnbc.com/2017/07/28/the-rv-space-is-on-fire-millennials-expected-to-push-sales-to-record-highs.html.
Staff, RV Industry Association. “2019 Projected To Be Third Highest Year On Record For Total RV Shipments.” RVIA, 28 Feb. 2019, www.rvia.org/news-insights/2019-projected-be-third-highest-year-record-total-rv-shipments.