REVENUE MANAGEMENT FOR CAMPGROUNDS

 

As a concept, revenue management began in the airline industry, where companies found ways to anticipate consumer demand in order to introduce dynamic pricing.

Hotels and resorts have been using yield and dynamic pricing for years — and successfully too, so why not use it for your campground?

For a campground, their campsite nights are finite – once a date is passed, it is too late to sell that night. As demand soars for those particular nights, campgrounds need to capitalize on it and maximize the revenue they can earn from those sites.

 

What makes Campgrounds and Holiday Parks suitable to ba able to apply RM?

 

 

How Revenue Management Helps Create Better Revenue for Your Campground?

On popular days, as the supply of campsites gets less and less, the rates should increase to reflect the true value of that campsite in the marketplace. You should be letting the market determine your price, instead of resorting to some arbitrary number based on what you have done in the past or what your competition is going. 

In our experience (we have been managing 2 holiday parks for the last 5 years, the Lady's Mile and Oakcliff Holiday Parks), effective revenue management can increase your campground site revenue by up to 25%. When you carry that revenue down to the bottom of your profit and loss statement, some business owners have doubled their profits.

 

Using Data for Successful Post-Covid Recovery

Previously, a look at your historical data would have allowed you to predict when demand would return. However, Covid-19 brought unparalleled, lasting changes that have made historical data mostly irrelevant. The recovery will look nothing like other bounce-backs. That means historical data doesn’t offer the guidance it did before, and a new solution is necessary.

Broad, dynamic data sets are what you need for a successful revenue management strategy in the future. This means focusing on live and, if possible, forward-looking data. This will allow you to understand price elasticity, forecast accurately and make smart pricing and distribution decisions. Revenue Management is your chance to capitalize on emerging opportunities ahead of your comp-set.

 

What Are Some Concerns about Revenue Management in Campgrounds?

One of the big concerns I hear from campground owners who fear using revenue management is that customers will talk and they will ultimately be upset. While this could theoretically happen on rare occasion, this fear isn’t necessarily based on reality. Your customers do not talk about the price of their campsite nearly as much as you think. And if they do, that is a bonus for you. Over time, it will train guests to book early in order to get the best rates.

When you get your guests to book earlier, you are doing three important things. First, you are driving demand by locking them into staying at your campground. The more time that passes, the more likely they are to see another destination or park that they want to try. Lock them in early. Second, it drives your prices to market sooner. If you understand the demand for your inventory of campsites at an earlier date, your yield management system can adjust prices to market much sooner, thus driving higher revenue. And third, depending upon your payment requirements, you get paid sooner.

 

How to Implement Revenue Management in Your Campground?

Here are some tips that can make the transition easier:

 

We are really enjoying having ventured into this field of the tourism and lodging industry and look forward to work with more camping’s and holiday parks.

 

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