Owning an RV park means you get to make a living out of something that you love. You get to experience an outdoor lifestyle while providing unique experiences. But of course, you also want to earn a good profit and keep growing your business. So here, we will explore some of the most effective strategies for maximizing revenue in an RV park or campground.
Maximizing revenue in your RV park is entirely in your hands. Industry statistics show that even in times of economic uncertainty like the ones we are living in, RV parks thrive. Due to the fact that it provides an affordable and flexible alternative to traditional vacations, the RV park industry is considered among the limited group of recession-proof businesses.
For a number of reasons, RV sales have experienced an unprecedented boom in the past few years. So as an RV park owner, you can expect continuous growth in demand for years to come. But how can you make your business stand out in an increasingly profitable, increasingly competitive market?
Increasing revenue in your RV park goes beyond reaching high levels of occupancy. From attracting new groups of campers to developing new revenue streams, from implementing technology to adapting to new trends, there are plenty of strategies that you can undertake when you are determined to find new opportunities for your RV park business.
1. Fully Integrate Technology into your Business
Traveling across the vast landscapes of North America is part of our tradition. For decades, RV parks have proved a profitable and steady business. Demographics of RVers remained pretty much the same and there was not much need for adapting to new realities. This meant that many RV park owners felt comfortable with the traditional ways of doing things.
Now of course the RV park business hasn’t been immune to the deep changes that our culture has experienced, especially since digital technologies became ubiquitous in our everyday lives.
The demographics of the industry have experienced a significant change. The median age of a first-time RV buyer has dropped to 32 years. The share of millennials and Gen Zers in the overall number of RV enthusiasts is likely to keep growing for years to come. Most RV owners know today that integrating technology into their business is an absolute must.
There are many ways in which you can integrate technology. However, your chance of standing out in a highly-competitive, digitally-dominated market will be significantly boosted if you do it as widely as possible. Getting hold of every possible technological feature is key to maximizing revenue in your RV park.
Online Bookings and Centralized Reservation Management
The internet is the main gate through which guests discover your campground and book a site in it. Though many RV parks feature online reservations, there are still plenty that haven’t transitioned from emails and phone calls. Increases in the number of reservations and in revenue usually follow closely when RV park businesses implement online bookings.
Reservations at most RV parks today can be made via their website or via Online Travel Agencies (more on this below). Basically, the goal of using an online booking engine is to reduce the barriers for your guests to book at your RV park.
But you should keep in mind that there are two sides to them. While the side facing the customer is aimed at making their journeys seamless and user-friendly, the side facing the business should help RV parks organize bookings in real time, save time, and generate more revenue.
As part of our mission of providing campgrounds with the most effective management tools, RoverPass developed an easy-to-use, easy-to-learn campground reservation software.
Designed as the ultimate reservation software, it allows you to manage all reservations at your campground from one single centralized view, helping you bring your guests a simpler and better booking experience.
Implement Dynamic Pricing
Hospitality is a highly dynamic industry. The pricing system used by businesses should be flexible enough to reflect constant changes in demand and supply. This is why a reservation system that features dynamic pricing is an effective tool for revenue maximization in the RV park industry.
But what is dynamic pricing? We can define it as a revenue management strategy based on market supply and demand. It is widely used by businesses in the hospitality industry since it allows owners to adjust prices based on a number of factors such as occupancy, holidays, seasons, and more.
But how does dynamic pricing affect your revenue? Basically, it helps you maximize the amount you charge for a site at your RV park on any given day.
In a way, most RV parks implement a simple version of dynamic pricing when they use differentiated rates for the high season or for weekends. However, with a more sophisticated strategy, owners can adjust prices based on real-time occupancy. This way, they can make sure that, at every moment, they are getting the most value out of each of their sites.
Simplify Channel Management
Today, most RV parks are connected across a wide range of Online Travel Agencies such as Booking, Airbnb, Expedia, Agoda, and others. This represents a huge management challenge. Keeping listings updated across every channel is not only time-consuming, but it also exposes you to errors.
Luckily, there are tools available today to simplify channel management. As part of our goal of providing campground owners with a complete suite of campground management tools, at RoverPass we created Channel Manager Optimization Software, which is designed to help RV parks manage all their OTAs from one centralized portal.
With reservation information being updated in real time, you eliminate the risks of duplicating bookings, which means you will avoid that recurring nightmare many hospitality entrepreneurs have experienced: overbooking.
Also, once you have simplified channel management, it will be easier to list your RV park at new places, increasing your distribution network and eventually leading to more reservations and more revenue.
2. Scale Up Your Marketing Strategy
Expanding and improving marketing strategies is one of the main challenges RV parks are facing today. Luckily, it is now easier than ever for businesses to deploy a comprehensive set of marketing actions across a variety of different channels.
Using the right tools, you don’t need to be a marketing expert to increase and improve your park’s online exposure. You will be able to reach a wider audience, actively attract and retain more guests, and, ultimately, generate more revenue.
Most RVers plan ahead for their trips. So your marketing strategy should be aimed at attracting their attention to your campground while they are at it, and showcasing what makes your RV park a special place.
Build a Website
A strong online presence has a major impact on the success of any business. Studies show that 75% of customers judge a business’s credibility based on the content and design of its website.
What are the absolute musts for an RV park website? Aside from being professional-looking and easy to navigate, it should provide potential guests with all the information they usually look for. This includes location, rates, availability, photos of campsites and amenities, and reviews from previous customers.
But keep in mind that the goal of a website is not only to display information. You should make sure that your website showcases what sets your park apart from others. RVers have access to enormous amounts of information, so your website should look attractive enough to hook them as soon as they are in.
Finally, when building your website content, don’t forget about search engines. The concept of SEO defines a set of techniques that can make your website rank better. Consider using relevant keywords, meta descriptions, and images to help search engines understand that your website can be the answer to users’ search intents.
Now if you have never created a website all this can sound a little overwhelming. But there are many website solutions that can provide you with customizable templates that will allow you to save tons of time and achieve better results.
RoverPass’ Website Building solution was developed for this purpose. With a website created, hosted, and managed by RoverPass, it is easier for campgrounds to turn visitors into guests with just a few clicks. Directly linked with the central reservation system, it streamlines the process of booking in order to generate more conversions and increase revenue.
Build New Amenities
Marketing is all about identifying a certain demand and then developing strategies for attracting customers that represent that demand. So building new amenities to make your campground more attractive to potential guests, or to cater to a new demographic, is an essential part of positioning your business in the market.
Amenities are a key factor in the attraction and retention of new guests. Most RV enthusiasts look for amenities that go beyond the basics.
When planning for new amenities, consider your target demographic and what additions will better suit their needs and expectations. Are you catering to families? Groups of young campers? Digital nomads? Pet-lovers?
Amenities that are popular among campers do not necessarily require big investments. For example, you can build a dog run in your RV park without spending much and just by following a few steps. Other desired amenities are swimming pools, playgrounds, and sports facilities.
There is a major challenge many campgrounds are facing when it comes to building new amenities. Access to capital is not always easy for small businesses, especially in a complex economic context of inflation, the threat of recession, and rising interest rates.
Building new amenities would not be of much use if you don’t let RVers know all the effort you have done to make your RV park more appealing.
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List Your Amenities Attractively
Today, travelers have access to plenty of information. They can compare among a wide variety of different options and decide which one of them offers the amenities that suit them better. So it is key that you ensure visibility for everything that can make your park stand out in that ocean of images and information.
Listing the features of your RV park at your website and at the different OTAs is crucial for the success of your business. Attractive listings can make your park differentiate from competition and increase your chances of attracting guests.
Listings should showcase your park’s amenities and location, describe the sites and the facilities in a simple manner, and highlight those unique features or experiences that set your park apart. Also, they should mention proximity to natural landmarks or tourist destinations, which is one of the main attractors for campers.
Marketplace is a RoverPass solution to help RV parks gain visibility by uploading their listings for free to the largest database of bookable campgrounds. It has a significant impact on revenue, with earnings growing up to 20%. By filling out a simple form, RV park owners can list their property details to showcase what is unique about their campground.
To become a featured property and gain a privileged placement in the marketplace, they can also request the RoverPass Premium Listing. This solution allows for increased impressions, views, traffic, and bookings.
Encourage Your Guests to Come Back
Once you have attracted guests to your campground, now you want them to come back. There are many different strategies to achieve this.
Usually, guests have a clear picture of what they can expect in terms of sites and amenities before they arrive. What really makes the difference, then, is high-quality customer service. This not only means being responsive to guests’ needs or addressing issues. It’s about making your best effort to ensure they have a great experience at your campground.
In addition, you could offer discounts for repeat customers and referrals, as well as loyalty programs for frequent guests. Also, make sure to reach out even after your guests have left your campground. Encourage your guests to write reviews, if they want to, and aim at building a strong online community where campers can share their experiences.
Know Your Competition (and Stand Out)
Conducting thorough market research is an essential part as you plan ahead for building a profitable RV park business. But it doesn’t end once your park is open.
The importance of being up-to-date with what your competitors are doing cuts across your whole marketing strategy and beyond. In order for the actions mentioned above to be effective, they have to be performed with a clear awareness of how your park will differentiate from others.
How are other parks presenting themselves online? Are they building new amenities? Are they catering to new audiences? As you scan the market to understand its current state and latest developments, you will be able to identify gaps and discover new possibilities for your own business.
So now it is time to explore how new trends and changes in the market can be leveraged for the purpose of maximizing revenue in an RV park.
3. Make New Trends Your Best Allies
We mentioned above how the vast economic and cultural transformations of the last decades have affected the RV park industry in many ways. But these major shifts go beyond demographics. More recently, new ways of using RVs have emerged or become more mainstream.
The median annual usage for RV owners has remained steady at 20 days for years now. Yet surveys show that people intending to buy an RV in the near future plan to use it for at least 25 days per year.
This significant 25% increase indicates that, aside from traditional vacations, other ways of traveling are becoming more and more common. It is these new trends that are demanding changes to RV park owners to adapt, and also bringing new opportunities.
Workation
The growth of remote work has opened new possibilities in different sectors of the economy. Surveys show that 39% of new RVers expect their vehicles to be places where they can have access to work while at the same time being able to explore the outdoors.
This means that providing excellent Wi-Fi service and good Internet speed is now more important than ever. This type of guest tends to stay longer than average, which allows for establishing deeper connections and long-term relationships.
Glamping
Glamping is a growing trend among younger generations that combines the outdoor approach of camping with modern amenities. Adding yurts to your campground is not costly and it is an effective strategy to attract millennials and Gen Zers.
Other Trends
Groups traveling across the country to attend music festivals are now a common sight at campgrounds in the United States. Another growing trend being observed in the hospitality industry as a whole is that travelers are looking to become more immersed in local cultures.
Also, younger generations tend to pack technology devices such as video game consoles and streaming devices, as well as sports gear, all of which create new expectations and demands for RV parks.
4. Diversify Your Revenue Streams
So far, we have explored strategies that are aimed at attracting more guests to your campground and retaining them for longer. But what about when guests are already at your campground? What can you offer them that will make their vacation more pleasant and at the same time help you increase your revenue?
Not all of your profit must come from the RV sites. In fact, and especially as your business begins to take off, you will find many different options to expand your revenue sources.
Feature an On-Site Camp Store
An on-site camp store allows you to boost your revenue per reservation.
Items that are typically offered at a camp store are campfire supplies, plumbing supplies, and all of those things that campers usually forget like sunscreen, bug spray, toilet paper, batteries, clothes pins, and many more. Check out this article for a detailed list of items you may offer at your camp store.
To help campgrounds manage their stores, we created RoverPass Online General Store, an online point of sale where you can centralize all monetary transactions that take place at your campground. A well-designed, well-managed, and well-supplied camp store will allow you to earn more revenue per guest.
Host Special Events
The search for more meaningful experiences by guests has been observed across the hospitality industry for years now. Providing campers with events is a great way to create memorable experiences, which also helps build customer loyalty.
A wide variety of different events can be hosted at a campground:
- Full moon hikes
- Music concerts or festivals
- Barbecues
- Bingos
- Craft fairs
- Sporting events
These are just a few ideas. Nobody knows better than you what image you want to convey to your guests. So make sure to choose the events that are aligned with what you want your RV park to be.
Partner With Local Businesses
We have already mentioned how travelers are looking to connect more deeply with local culture and communities. This is a trend that you can leverage for your campground by partnering with local businesses that can provide the meaningful experiences your guests are looking for.
Some businesses may be willing to give your guests discounts, or to share commissions for referrals that benefit both your business and theirs.
But aside from helping you maximize revenue, partnering with local businesses will allow you to create deeper connections with your community. In time, this will help you become a better host and give you tools to provide better experiences for your guests.
Maximizing Revenue in an RV Park or Campground is About Being Open to Change
Once a traditional, relatively steady business, RV parks have now become part of a highly-profitable, highly-dynamic industry. At the same time, the market has become much more competitive, which demands new strategies from campground owners.
While all of the strategies exposed above are aimed at maximizing revenue in an RV park, they can be summed up in an attitude: being open to changes and willing to take bold steps to adapt your RV park to market transformations and guests’ expectations.
Keep reading our blog to learn more about the many aspects of managing an RV park in the exciting and challenging times we live in.
Additionally, if you’re seeking a forum to exchange innovative ideas and collaborate with like-minded RV park owners, we encourage you to join our Facebook group—a thriving network dedicated to fostering growth and adaptation in the ever-evolving world of RV park management.