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Home > Consumer Products > Consumer Products & Retail > Sports and Recreation
Recreational Vehicle Parks
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Over 4,000 RV parks and campgrounds in the US have combined annual revenue of about $2 billion. Major companies include Kampgrounds of America (KOA) and Thousand Trails. Most RV parks and campgrounds are single locations and privately held. The RV parks and campgrounds industry is highly fragmented: the 50 largest companies account for about 25 percent of industry revenue. A typical campground has less than $500,000 in annual revenue and about five employees.
COMPETITIVE LANDSCAPE
Demand is driven by personal income and tourist travel. The profitability of individual campgrounds depends on site occupancy rate and effective marketing. Large campgrounds have advantages in diversity of site offerings and amenities. Small campgrounds can compete effectively by marketing to their target demographic and through favorable site location. Campground operations are labor-intensive: average annual revenue per employee is less than $100,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are campground rentals (77 percent of industry revenue) and groceries and meals (9 percent). Other revenue sources include dues and fees for membership campgrounds. Campground rental generally includes utility hookups for power, water, sewage, and propane gas.
Typical RV park amenities include a grocery store or snack bar, coin-operated laundry facilities, and a swimming pool or natural swimming area. More expensive campgrounds offer golf course, tennis, and spa facilities.
Most RV parks and campgrounds are independently owned; even many chain campgrounds are independently owned franchises. Campgrounds generally offer inexpensive recreation-oriented accommodations near national ...
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