Kampgrounds of America Inc. (KOA) shared continued revenue growth in its Q3 Business Report, according to a company release. Comparing the same period in a record-setting 2021, revenue improved by 2.1% on a same-store basis. Looking ahead, advanced deposits on future business are up 4.5%.
Short-Term and Long-Term Performance Analysis
The bulk of KOA’s business, short-term leisure travel, posts a 1.5% increase in same-store registration revenue over the first three quarters of last year. Conversely, occupancy decreased for the quarter by 6.6% as the business adjusts to a new level established in 2021. Short-term occupancy for the period was 29% and 11.5% improved over the same time frame in 2020 and 2019, respectively.
“Our business saw an exponential jump over the past two years. Rather than returning to pre-pandemic levels of occupancy, a new higher bar has been set,” said Toby O’Rourke, president and CEO of KOA. “Legions of new campers were drawn to the outdoors and that interest is poised to continue. Many of those who started camping over the past two years report that they plan to continue, particularly in the current economic climate as camping is largely viewed as an affordable vacation option. With deposits on future business sitting comfortably above this time last year, we are very optimistic about what lies ahead.”
Looking toward long-term business, KOA posted a nearly 6% increase in registration revenue. Occupancy fell slightly and finished the quarter 4.2% behind 2021.
Franchise System Adds Campgrounds, Recognized as Most Profitable Franchise
In the third quarter of 2022, KOA added two franchise locations to the campground system. The new franchise KOA campgrounds are located in Colorado and Alaska. A growing state for KOA, the addition of Fairbanks/Chena River KOA brings Alaska’s state total to four.
“Alaska has made a splash growing from zero locations to four in less than five years,” said Ann Emerson, chief operating officer of KOA’s franchise system. “It’s encouraging to grow new markets where we can introduce camping audiences to the service and hospitality of KOA.”
KOA ended the third quarter being recognized as one of Franchise Business Review’s Most Profitable Franchises. One of 50 to be included on the list, data was analyzed from over 30,000 franchise owners representing more than 300 brands.
KOA’s Corporate Portfolio Expands by One
During the third quarter, KOA added a new California campground to the company’s owned campground portfolio. The most recent addition is Bakersfield RV Resort in Bakersfield, Calif. This addition brings the 2022 acquisition total to 10.
“Our acquisition strategy continues to be aggressive,” said Darin Uselman, chief operating officer of owned and operated assets of KOA (OAK). “This not only makes financial sense, but it also further solidifies KOA’s leadership and position in the growing campground industry.”