Over the many years that I have been helping campground managers and owners set up their reservation software, one topic is certain to come up for debate; the deposit policy. A reservation deposit can deter campers from not showing up but it could also hinder those from booking a site. The balance can be hard. So, here are the three deposit policies I see most often, with pros and cons for each example.
According to the U.S. census, 4.5% of the US population identifies as LGBTQ. Fifty-eight percent of those are married, equaling almost 7 million same-sex households in America. If 10% of that population camps, then the LGBTQ community makes up 9% of all campers.
So, how can you reach the LGBTQ community?
Each year the KOA of North America puts out a comprehensive 45 plus page report on the trends, statistics and findings made from the camping and RVing industry over the past year. This year’s report provided a lot of useful information. Below we broke out some of what we consider to be the most useful information and ways you can apply it to your campground.
Instagram turns 15 years old in 2020. So to be frank, if your campground is still not using it, you really have no excuse. Nearly 1 BILLION people use Instagram every month and of those 1 billion, 500 million use it daily.
Over the last 10 years, Instagram has become become a digital link between celebrities, politicians, artists and legions of followers and fans. But most importantly, Instagram has evolved into a marketer’s Nirvana. Owned by Facebook, it is easy to run ads to reach EXACTLY the perfect camper you want at your campground.
Camping and RVing is one of the last sectors of the travel and tourism industry to evolve through the use of technology tools. When I listen to campground owners talk about what they want from reservation management software, the simplest answer is that they still want ultimate control over their reservations. And that makes sense because reservations are the baseline product and revenue generator of the travel industry.
There were over 160 million online reservations booked in 2017 in the United States. While these were for hotels, let’s take a moment to think about this in terms of RV Parks and campgrounds.
There are approximately 15,000 RV Parks in the U.S. and approximately 55,000 hotels. If you use the same hotel to RV Park ratio, RV Parks should be booking approx. 4 million online reservations a year. 4 MILLION. Of those who book online, over 45% of people booked their stay 1-5 days in advance and 24% booked a reservation ON THE SAME DAY AS THEIR ARRIVAL DATE. If your primary goal as a campground manager/owner is to fill those sites, those extra couple of reservations booked the day of could mean the difference between profit and loss.
So, this poses the question, how can you capitalize on online and short notice bookings?
It is easy. Allow people searching for where to stay to book and pay online, even during times when your campground is not open.
We have heard it time and time again. Park managers and owners wake up and start their day calling back those who left messages after closing to reserve stays only to find out they called another campground and successfully booked. You can combat this easily by adding a URL to an away message allowing those looking to stay at your park to book online.
We know what you are thinking, “over booking can happen.” Not with reservation management tools, like Bonfire, that allows you to control inventory by automatically updating which sites are full and for how long. Bonfire also provides you with your own online booking page, making it easy for you to point people to the correct URL for simple online reservations and payments.
Don’t know if Bonfire’s simple-to-use and simple-to-learn reservation and campground management tools are right for you? Schedule a call with our Head Honcho and ask any questions you have.
With or without Bonfire, we hope your park can capitalize on the growing online reservation industry and those looking to book stays at your park.
Thinking of getting out of the corporate world or investing your money for the future? We understand. In recent years an increasing number of Americans are seeking respite from the daily grind by retreating to nature. Pastimes such as hiking, camping, and other outdoor activities are on the rise. In fact, each year since 2014, 1 million additional American households have added camping to their yearly retreats. Buying a campground might be a great investment for you and/or your family. However, it does come with risks. If you are in the market or thinking about getting in the market, here are a few tips on how to buy a campground.
1. The Down-Payment
When purchasing a RV Park or campground, you have to have a hefty down payment of 20-30%. There really are not any good ways around this. Why? Unlike buying a home, you are purchasing a business with 3 parts.
Although they are all joined physically, they are analyzed separately, so, you need a little cash flow. A lot of new owners sell their homes and use the money made to pay for the down-payment. One thing to keep in mind, however, is that park owners will not hold their park while you sell your house. So, it is a bit of a gamble. You can also consider using other assets for down payments as well.
2. Extra Cash
Even after the down-payment, remember you will need to have some cash in the bank for general operating costs, to make improvements and for tools your business needs to get off the ground like Bonfire’s campground reservation management software.
There are several loan options out there besides a loan from banks. You can apply for a SBA (Small Business Administration) loan. If a bank is hesitant to give you a loan, they could require a SBA guarantee. You still HAVE to have the down-payment. The interest rates on these loans are also much higher. Bank loans are your best bet but again, you must have a downpayment of 20-30% upfront in order to qualify.
4. 401K Small Business Financing
This can get a little tricky. The easiest way to use your 401k makes it impossible to become a full time employee of the campground as you have to keep working for the employer your 401k is through until the loan is paid off. The harder way is to apply for ROBS (Roll-Over for Business Startups), but it allows you to work full time for your new campground. For ROBS, first, you have to structure your business as a C-corporation. Then, you have to set up a new retirement plan under the C-corp. At that point, you roll over the funds from your existing retirement plan into the new company’s retirement plan. Finally, your new corporation sells stock to the retirement plan, and the company uses the proceeds from the sale as a source of capital. (One catch: You can’t pay owners’ salaries from these funds.)
There are four main eligibility requirements for a ROBS:
• You need an eligible retirement account—such as a 401(k), 403(b), SEP, Keogh, or traditional IRA. Roth accounts are not eligible.
• The retirement account must have at least $50,000.
• The business owner should be an employee of the business and receive a salary.
• You must either have a C-corp or be willing to structure your business as a C-corp.
For more on the above click here.
4. Seller Financing
Some park owners will allow you to pay a downpayment and create an installment plan over a fixed number of years. This is normally a great option for new purchasers and sellers. Many sellers will put stipulations in the agreement not allowing you to expand, cut leases or other things that might change how the park operates. So, depending on how you want to run your park, this may or may not work for you.
5. When To Start Talking to Banks
The best time to start talking to a bank is when you have a contract in hand from the campground. After all, terms and contracted price is what the banks will need to see in order to give you the loan.
6. Next Steps
After you have a signed contract and a loan agreement, you have approx. 30-60 to do your due diligence on the property and business. Now is when you should investigate the businesses tax records, leases, permits and other assets. The park owner might not be comfortable opening up the books for you prior to a bank signing off. If everything looks good, then the only thing left is to close the deal.
Buying a campground can be a complicated process but the rewards can far outweigh the risks. If you have any questions about the campground purchasing process, please shoot us a email at firstname.lastname@example.org.
Providing experiences and memories to groups of people each week is something that cannot be replaced. That is probably one of the reasons you own a campground or RV Park. But that doesn’t mean that all you are making money on is the nightly rates. Part of providing an experience to your guests is including other optional activities and, essentially, being a concierge. This provides an opportunity to generate revenue from multiple channels. Check out a few ways you can make passive income from your successful campground or RV park.
The allure of glamping, a word association of glamour and camping, comes from the age-old pleasure of having your cake and eating it too. For a growing number of people, glamping offers the escapism and adventure of the wilderness alongside the conveniences of refined, urban living. The effect is less classic rustic campground, and more upscale bed and breakfast.