Summer '05 Park Report: No Big Gas Price Effect

Jeff Crider

October 5, 2005

Woodalls.biz

Despite high fuel costs, summer season occupancy rates at RV parks and campgrounds across the United States were at least as strong as last year's and, in many instances, outpaced 2004 levels, according to park operators and industry officials.

"I think people did better this summer than last," reports Linda Profaizer, president and CEO of the National Association of RV Parks and Campgrounds (ARVC), Falls Church, Va. "Occupancy levels were up and dollars are up due to people staying longer."

Business over Fourth of July weekend, for example, was up 6%, according to the Woodall's/ARVC RV Park and Campground Survey, with an average occupancy rate of 84% over the long weekend. Reservation levels were also running about 6% ahead of last year's figures, the survey found.

Rather typical of the parks reporting a surge in business this year was California's Anaheim Resort RV Park. "Year to date, we're up 6% to 10% compared to last year," said park owner Paul Bostwick, who also serves as president of the California Travel Parks Association (CTPA).

Of course, not every park saw an increase in business. Profaizer said traffic was "a little off" in parts of New England. "But at the same time," she said, "some parks did really well up there."

"The Best Parks in America affiliates in the Northeast have had a very strong summer camping season," said David Gorin, president and CEO of the Best Parks in America marketing group. "Affiliated (Best Parks in America) parks in other parts of the country report typically strong seasons similar to those experienced in the last three years."

Kampgrounds of America Inc. (KOA) reported that its nearly 500 parks collectively had a strong summer season, with year-to-date camper nights surging roughly 6% ahead of last year's, according to Ken Stellmacher, vice president of marketing for the Billings, Mont.-based campground chain.

Regionally, KOA saw its occupancies increase by 10% in the Northeast, 8% in the Southeast, 6% in the Rocky Mountain region, 4% in the Pacific Northwest and 3% in the Southwest.

The strong showing in the Northeast was significant, Stellmacher said, because that region had suffered some from wet summers in 2003 and 2004. KOA President and CEO Jim Rogers attributed the surge in Northeast campground occupancies to the strengthening Canadian dollar, which has made the Northeast a more affordable vacation destination.

Stellmacher added that the four hurricanes that hit Florida in 2004 had little effect on KOA's snowbird business, so the 2005 Southeast camping season got off to a good start.

KOA was initially concerned about its parks in the Rocky Mountain states, since that region tends to rely more on long-distance travelers that may be more affected by rising fuel costs. But parks throughout the Rocky Mountain region did well, Stellmacher said.

Some state campground officials also reported strong summer occupancies.

Gorin, who serves as executive director of the Virginia Campground Association (VCA), said Virginia parks reported robust business from the Shenandoah Mountains to the coast, with mid-week business exceeding past performances.

The Texas Association of Campground Owners (TACO) saw a significant increase in activity, according to Brian Schaeffer, TACO's executive director and CEO. "In the past 60 days, I've talked to 25 to 30 parks, and I would say the ratio is five to one, with the majority of parks being up anywhere from 5% to 12%," Schaeffer said, adding that the remaining parks either had no change in business levels or they suffered a decline in business.

"I attribute some of the downward trend to people who have either changed their marketing strategy or have not necessarily and specifically kept up with some of the competition in terms of amenities," Schaeffer said. "But those folks who are putting money back into their parks and are paying attention to their amenities are up."

Milford, Ohio-based Leisure Systems Inc., which franchises Yogi Bear parks across the country, said occupancies were flat, although revenues were up, according to Dean Crawford, the company's senior vice president.

As for rising fuel costs, TACO's Schaeffer said there has been little impact on campground occupancy levels thus far. "I talked to several parks who do a significant rally group business and they have not had any cancellations," he said.

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