Key Findings
The 2023 insights into the RV parks and campgrounds industry present valuable data on operational structures, financial performance, and employee compensation trends. Here, we summarize the key findings and their implications for park owners and operators.
Park/Campground Profile
Longevity and Ownership Structure
The data reveals that 70% of parks have been in operation for at least 20 years, with 42% operating for over 50 years. This longevity underscores the stability and resilience of the industry. A significant majority (78%) of these parks are independently owned small businesses, often referred to as “mom and pop” operations, with only 9% being corporate-owned and 6% franchised brands.
Geographic Distribution and Size
Parks are spread across the United States, with the South hosting the highest proportion. The typical park spans 23 acres, although parks in the Northeast tend to be larger, with a median size of 42 acres. Approximately 65% of parks have land available for expansion, indicating potential growth opportunities within the industry.
Operational and Owner Tenure
The average park has been in operation for 40 years, and about half of the respondents have been in their roles for over 10 years. Ownership tenure is shorter, with a median of 10 years, reflecting recent trends in ownership changes.
Employee Compensation
General Manager and Staff Wages
The data reveals that 49% of parks employ a general manager separate from the owner, with a typical annual salary of $52,200. The Northeast reports higher salaries, with a median of $60,000. General staff earn a median hourly wage of $15.01, with parks in the West paying the highest rates at $16.92 per hour. Competition for qualified employees is fierce, with 75% of parks paying above minimum wage to attract and retain staff.
Amenities and Activities
Common Offerings
Most parks offer essential amenities such as Wi-Fi, laundry facilities, and restrooms/showers. Recreational activities like fishing, swimming, and hiking are prevalent, catering to the diverse interests of campers. Larger parks tend to offer more extensive amenities and activities, enhancing their appeal to visitors.
Accommodations
Site Types and Occupancy Rates
The typical park offers 92 rentable sites, with full hook-up sites being the most common. Occupancy rates vary, with full hook-up sites averaging 68% occupancy, while rustic/tent sites see only 25%. Rates for accommodations also differ, with many parks increasing their nightly and weekly rates in 2023 compared to 2022.
Financial Performance
Revenue and Expenses
The median park reported a revenue of $3.52 million over the past year, with the bulk coming from nightly and monthly site rentals. Total expenses averaged $2.89 million, highlighting the significant costs associated with running an RV park or campground. Investments in expansion were reported by 27% of parks, with substantial variations in the amounts spent.
Conclusion
The 2023 data offers a comprehensive snapshot of the RV park and campground industry. It underscores the sector's stability, highlights the competitive landscape for employee compensation, and reveals growth opportunities through expansion. For park owners and operators, these insights are invaluable for strategic planning and operational improvements.
MMCG specializes in providing feasibility studies for RV parks, resorts, and campgrounds, including those for SBA 504, 7(a) loan programs. Our expertise ensures that your RV park, RV resort, or campground can secure the necessary funding to thrive in this dynamic industry.
July 22, 2024, Michal Mohelsky, JD, MMCG Invest, LLC
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