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Recession-Proof: Private Campgrounds

By KAREN E. KLEIN, BUSINESSWEEK.COM
Posted: 2009-05-13 17:46:53
Filed Under: Small Business, Business Ideas, Starting a Business

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BusinessWeek.com

Low-cost, family-friendly private campgrounds, most of which are small businesses, are doing well despite the travel slump.

Combine a global economic recession with fears of pandemic disease, and it looks to be another dismal summer season for the travel industry. But for one sliver of the accommodations industry -- the small business-dominated private-campground business -- things are looking up.

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    All the gloom and doom about job loss and the economy translates into "one more piece of good news for me," says Rick Yeager, whose family owns Rose Point Park Campground in New Castle, Pa. He employs up to 10 people seasonally; annual revenues are about $350,000. Bad news is often good news for family campground owners, he says: "People are not going to go on a cruise, and a lot of them will look for a closer vacation that's more secure. Sad to say, but September 11 was actually a boost for our business because people were afraid to fly or go to Disneyland."

    There are about 8,000 privately owned or operated campgrounds in the U.S. The industry is dominated by small-business and family-business owners, says Bob MacKinnon, a former Disney executive who started a campground consulting firm, MacKinnon Campground Consulting, after he retired. (He says another 8,000 campgrounds in the U.S. are owned and operated by national, state, and local agencies.) "There are mega-parks out there that have thousands of campsites, corporate players that own multiple campgrounds, and KOA, which is a franchisor with close to 500 parks nationwide," MacKinnon says. "But over 50% of the industry is still individual owners who have small parks. Many are multi-generational family owners."

    Gene Zanger, one of the owners of Casa de Fruta Orchard Resort in Hollister, Ca., has four generations of family involved in running the RV park that started as a cherry stand in the late 1940s with a loan from A.P. Giannini, the founder of Bank of America. Today the operation is a must-see stop off the main inland route from Southern California to San Francisco and includes a restaurant, train, carousel, seven fruit stands, and a tasting room for Zanger Family Vineyards. "This summer we're real hopeful that people are going to come out. Reservations are above last year for the season and we've recently been getting more phone calls," Zanger says.

    Upgraded Amenities
    A big part of the reason, of course, is that the cost of a local camping vacation is far less than a trip that includes airplane tickets and hotel accommodations. A study by PKF Consulting and sponsored by the Recreation Vehicle Industry Assn. found that the average camping vacation would run 21% to 67% cheaper than a fly-drive-hotel vacation. "Historically, when there's been downturns in the economy, our segment of the industry has done pretty well. We will remain fairly stable because we're so value-oriented, even in times of recession," says Mark Anderson, president of Camp Chautauqua in Stow, N.Y., and chairman of the National Association of RV Parks & Campgrounds.

    Even though gas prices and the credit crunch have pushed down sales of campers and trailers over the past two years, people who already own RVs continue to get as much use out of them as possible. Far-flung campgrounds suffered last summer because of record-high gas prices in most of the country, Anderson says, but most people camp within 200 miles of home, and the industry as a whole was not hurt too badly.

    Campground owners spend much of the off-season upgrading and adding to their properties. Anderson says his family spent this spring supervising the installation of new road paving, higher-grade electrical outlets (even tent campers require electricity these days, he says) and remodeled restrooms. "We just switched a lot of our heating over to natural gas from propane and oil," he adds.

    Like many of the most successful campground owners, the Zanger family will incorporate more social activities this summer for their guests. Campers love old-fashioned options like hay rides, ice cream socials, nature hikes, and crafts classes, he says. In recent years many campground owners have also added more up-to-date amenities such as outdoor movies, cable television, yurts, cabins, and Wi-Fi.

    But it may be the nostalgia factor that is the campgrounds' main draw. "People come for the experience, not because they want to stay somewhere cheap. They want to make a campfire and be in a place where kids can run free and they don't have to watch them every minute," Yeager says. That feeling of safety within the boundaries of the private campground, where some families return year after year, may be especially attractive in a society where stress and fear often dominate.

    "This reminds me of the north side of Pittsburgh in the '30s and '40s," Yeager says one customer told him last summer. "It's a throwback to where people grew up, when they knew their neighbors and everybody talked to everybody else."

    Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.

    2009-05-13 15:54:01
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    samsontv 12:39:07 PM Oct 22 2009

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    Knoebels Family Resort in central PA has two huge campgrounds, is connected to a free admission, pay-as-you-ride awesome amusement park, is pet-friendly, good food at reasonable prices, and a nice golf course. One of our family's favorite places. A wonderful place since grandparents and disabled folks who don't wish to ride many rides can get it free and just do the few things they enjoy. Besides pay-as-you-ride (ticket books) mean that if a line is longer you're not wasting any money as you would in a mega theme park. Common sense great place.

    crystalannesays 02:57:13 PM Jul 09 2009

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    Every Business needs the availability to accept credit cards. Go to www.bankcardempire.com/15066

    kinesisjax 08:19:36 AM Jun 10 2009

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    Recession proof your income:While the economy struggles and millions of Americans lose their jobs, the Home Business Industry is thriving. I joined a company called LGN (highly reputable ... look it up) that is making me thousands in a down economy. Check it out ... http://www.EasyHomeEarning.com

    molegitmoney 01:34:26 PM Jun 07 2009

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    While camping is for those that can travel during these tough times. It would be great to take your business in a box while you relax. I feel as most of America has in which the economy has affected over seven million homes in some type of disaster. While we absorb the media as what has happen with Forbes richest list and celebrities, most Americans can change the way they live with a small investment for their dreams to come true by being in business for themselves. My son-in-law showed me a way out. While the product is moving across America we are excited that we can assist so many people.Do You Want To Earn More Money? Earn up to $2,000 to $5,000/mo without leaving your job.. Call now and listen to what my friends have to done! (3min. message) Toll free 1-866-670-0989-leave my code-LEB

    jinjerbell 08:02:47 PM May 31 2009

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    .......... If you are working now, start your business anyway and work part time, just in case you lose your job. If you don't work get in and work it hard! I can help anyone who is looking for a job or business online. Until I found a company that exceeded my expectations, I made a ton of mistakes and lost as much money. If you're lost, afraid, pondering a business or job, don't know what to look for or look out for, feel free to email me for help, advice or concerns. Sincerely,TracieEmail: BeenThereDoneThat@bigstring.com

    jinjerbell 08:01:47 PM May 31 2009

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    I work at home in my own business and I have had quite a journey finding one that pays me. I made a lot of mistakes and lost a lot of money doing it. It's very scary stepping out of the box and doing something we weren't programmed to do as we grew up. We were taught to get school over with and then start planning our retirement with a normal 40 or more hour job in corporate America.There are businesses on the internet that will work and you will get paid for. There are however some rules to follow in your search. Make sure the industry is one that will survive the recession. Personally, I believe residual is the only way to go. Residual income means something you get paid over and over for. It will allow you to retire early and in some cases, it can be inherited by your family.Don't settle for just a job. Why would you want to? It would still be something that could be taken away from you. Make sure you can work part time or full time.................................continued

    dklekamp 10:28:43 AM May 31 2009

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    Go to www.abcamping.com . I have found this campground chain to be one of the best. Great locations........great activities........great staffing.

    algamu 10:00:20 PM May 24 2009

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    It is amazing camping, I never thought I would ever enjoy it as much as we do, we went camping to NC from VA at this campground call YogiBear at Marion and the water park, the activities and the entire place is just so amazing, this time we stay in a cabin that has a beautiful view of the lake, may be next time we stay in a tent or maybe not we definitely we are coming back

    rramsey100 07:14:04 AM May 15 2009

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    In addition to contacting ARVC, every state has a campground owners' association. Google "campgroung owners of (insert the state). Then call or email them and ask them to send you a catalogue. It's free and they would be very happy to commomodate you. Happy Camping!

    gsos732 07:37:49 PM May 14 2009

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    here you go. find all the campgrounds you needhttp://www.rvparkhunter.com/state.asp?state=newyork

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