Trends Impacting the Park Business

David Gorin & Associates keeps its fingers on the pulse and direction of the park business and regularly advises clients on trends that are effecting the business. Visit this section of the website for current trends that may be effecting your business interests.

Summer Season Trends

As the summer of 2011 moves forward (as a summer lover, way too fast for me), there are some clear trends that have emerged and which will have a long life in the park business. Some things to keep in mind as you go through the summer season or as you prepare for your busy season during the winter.

Emergency Preparedness (July 8, 2011)

It's been a brutal spring and summer weather-wise in many parts of the country - and not just in the usual places. Tornadoes, floods, heavy thunder storms and extreme heat have impacted parks from Massachusetts to Missouri, from Pennsylvania to Arizona. The reports of camper/RVer deaths resulting from downed trees on trailers and tents, of river drowning, lightening strikes and fires seem to becoming more the norm than an aberration.

If ever there was a time for park owners to re-visit their emergency planning, re-train and remind their employees about emergency procedures, review back emergency equipment and procedures, and put an emergency notification system into place, now seems like an appropriate time.

An emergency notification system seems to me to be almost essential. How do you notify your guests of an impending weather system or other emergency that may put them in danger? I realize no one really wants a public address system all over the park, but it may make good sense to have one on hand - assuming you're able to control its use for any purpose other than emergencies. Obviously there are other ways to notify guests of a possible situation - but no matter what you do, please have something in place and ready to activate.

In the words of the Boy Scouts, be prepared.

Electric Car Charging (July 8, 2011)

In recent months, a number of articles have appeared in various industry publications about the potential for RV parks and campgrounds to eventually become a leader in providing charging stations for electric vehicles. Seems to make sense as parks generally have electrical hookups that work well with providing power to RVs, why not to cars?

Depending on your location, the park could serve as an electrical charging station for the general public as well as for park guests who may have a need to charge their towed vehicles for local traffic, golf carts and other electric vehicles.

Some park owners are packaging several hours of charging together with use of the park wi-fi system, use of the pool and restroom facilities and other on-site amenities.

Could be the new profit center of the decade. Best Parks in America recently issued a white paper to its affiliates about this new development. For a copy of the paper, please send an email to info@bestparksinamerica and we'll be happy to send it along.

Energy Efficiency (July 8, 2011)

There's not a park out there that isn't constantly looking for ways to reduce expenses. And there's not a park out there where electricity is not one of the top 3 to 5 expense items. So reducing your electric bill makes great sense and a great difference to your bottom line.

Energy audits have been around for a long time. Some utility companies offer energy audits as a service to their customers. Some have programs that let them reduce your power use during peak periods and essentially force you to use less power and reduce your cost. And there are some very excellent private consultants who can do audits and help you find ways to reduce your electric use - primarily be replacing older technology with new, energy efficient options. Lighting is one particular area where changing older bulbs with newer, high efficiency cooler bulbs may make great sense.

I'm amazed at how many bulbs may be burning in RV parks and I think you'd be amazed as well if you did an inventory of bulbs in your park. Try counting every one of them, figuring how long the are on each day and how much electricity each uses during a 24 hour period. I think you'll be quite surprised.

Suggestion one: First place to look is to see if you can put lights on a motion sensor that turns them on and off based on motion in the room.

Suggestion two: Engage a professional to do an audit of your park and provide you with a report on how and where you can reduce energy use. Many of these pros will conduct the audit for a very modest fee (maybe including a couple of nights in the park) or for your business in purchasing some of the recommended fixes from them (that's not a bad deal if they know what they're doing).

I recently came across two highly qualified experts in helping parks achieve energy reductions. Howard Boothroyd, Energy Management Partners, operates out of Florida and can be reached at hboothroyd@comcast.net (www.empgreen.com) or 941 320 0476. Another good contact along the Atlantic Coast and up to New York is Vince Kranz. Vince can be reached at vkranz@comcast.net. Either one of these highly qualified gentlemen can help you significantly reduce your electric usage and be sure you are getting the best deals on equipment.

Posting Site and Cabin Availability (July 8, 2011)

I've recently noticed a couple of parks that are sending weekly emails to past guests advising them of availability for the coming weeks and reminding them of upcoming events and special promotions. Regular communications with recent guests is an excellent way to keep your park in their minds and by telling them what's available you are planting the seed to go camping again at your park - and they better make that reservation because as you can see, we don't have much space left for that special event weekend.

Why are You in Business? (July 8, 2011)

In a recent video blog provided to Best Parks in America affiliates and others, well known RV industry expert Blake Ashdown posed the question "why are you in business?" The apparent answer is "we're in business to make money." Ashdown maintains that if you're in business to make money, the decisions you make are always driven by that single goal.

The better answer to the question is that you're in business to find customers and to keep customers. If you approach each business decision with that in mind - will my decision in this situation help me find customers or keep customers - you'll make more sound decisions that will have a longer term impact on your business profits than if you take the opposite approach - will my decision help me make more money?

In today's world, it is distinctly possible to make more money in the short run but at the same time lose a customer you have. And think about the value of that lost customer - how much did it cost you to get that customer, how much will the customer spend at my park if I can keep him, and how much will it cost me to replace the customer I lose.

Blake's on to something that certainly deserves some careful thought and consideration. Why are you in business?

Spring Season Trends

Why People Drive (March 1, 2011)

Gas prices may be inching towards the $4 per gallon mark, but most Americans still prefer the convenience and affordability of a drive vacation.

New data from a Mandala Research/Solutionz Project 85 study of American travelers show "being comfortable" is the primary reason why almost three-quarters (74 percent) choose to drive to their destination, compared to the 17 percent who choose air travel.

With the continued accumulation of ancillary airline fees, tighter seat configurations, baggage restrictions and airport security delays, it's not surprising that Americans are asserting more control over their vacation plans by opting to drive themselves.

The comfort factor is particularly import to travelers over 50. Eighty-one percent of those 50-plus say they like that they can determine their own schedules and stop where they like, while 71 percent say they like that they can "bring more stuff" when they drive to their destination.

All good news for the RV park industry.

New Revenue Opportunity for RV Parks? New Guest Service? (March 1, 2011)

A new breed of travelers is on the road - electric car owners. Both independent drivers with new electric cars (Chevy Volt, for example) or RVers towing or trailering an electric vehicle. And they need to charge their vehicles along the way. They need electricity and RV parks have electric pedestals. And parks have other amenities that make your park desirable during a re-charge: wifi, a store, nice picnic tables and perhaps even a cafe, snack bar or restaurant. Many can even offer pools and restroom facilities.

Hotels around the globe are adding charging stations. It won't be long before truck stops, Crackerbarrel, even McDonalds may be adding charging stations. RV parks that have onsite rentals are already ahead of that curve. Those that have park models or other rental accommodations are perfectly situated to take advantage of this new traveler.

If you aren't already servicing this new market ... consider doing so. This can be a new revenue stream AND introduce your park to new potential guests.

Interest rates edging up (March 1, 2011)

Higher interest rates could effect the sale of RV condominium lots as well as RV purchases. Rising interest rates may be helpful in the short run as buyers of sites and RVs figure rates are heading up and now's the time to pull the trigger on the long-delayed purchase.

Gas prices heading up (March 1, 2011)

An increase in gas prices may not a good sign for the economy, but also may not be too bad for RV parks and campgrounds located within 100-120 miles of major population areas. Even though gas prices may rise, camping (or RVing) remains the most affordable vacation or travel option - especially as RVs become more energy-friendly.

Winter Season Trends

RV Shipments Surge in 2010 (January 15, 2011)

Total wholesale shipments to retailers of all RVs soared to 18,300 units in a December 2010 survey of manufacturers, 36.5 percent greater than November 2010 and and 30.7 percent greater than this same month last year, according to the RV Industry Association. The month's strong showing brought totals for the year to 242,300 units, up 45.6 percent over 2009 and the highest annual totals in the past three years.

Environmental Considerations (January 15, 2011)

Green parks, those that are implementing various environmental and energy efficient strategies in their operations, are appreciated by RVers and campers although the consensus among park operators is that this is not a major factor in how RVers and campers select a park to visit. Experts are saying that expenses incurred to become more energy efficienct are only valuable when they can actually and verifiably reduce expenses and provide a sound return on the investment. In a survey conducted by RVTraveler.com in April 2010, 75% of the respondents (over 1350) indicated that an RV park that promoted itself as a "green" park had no bearing on their decision to visit that park. Less than 8% indicated they gave preference to a "green park".

Fitness Facilities (January 15, 2011)

Fitness and exercise rooms have become an increasingly popular amenity in RV parks. The second phase of this trend is now emerging - state of the art equipment, weights and overall more upgraded fitness areas are gaining in popularity as more people of all ages are becoming more health and fitness aware.

Rental Units (January 15, 2011)

The importance of adding or offering rental units of various types (cabins, park models, trailers)has been getting substantial press and generating lots of buzz in trade press and at industry meetings. According to the 2010 National Economic Survey (conducted by National ARVC), 44% of the parks offer some type of rental unit, compared to 60% offering rental units in the 2008 survey. The jury seems out on whether or not rental units are a growing trend in the industry.

What Clients & Colleagues Say About David Gorin

"David is one of the pinnacles in the RV industry. He has an extensive knowlege of both the micro and macro aspects of RV'ing, RV parks, and the entire lifestyle. David has kept pace with the rapidly changing trends and has the innate ability to apply his knowlege and adapt to an always evolving industry." March 2, 2009

- Ryan Billib, Owner, Billib & Billib
Reported to David at Holiday Cove RV Resort LLC