Editor’s Note: National ARVC rebranded to OHI Tuesday (Nov. 7) morning, you can read more about the change by clicking here.
Paul Bambei, the president and CEO of OHI — formerly known as the National Association of RV Parks and Campgrounds — moderated a panel on Tuesday (Nov. 7) morning at the 2024 OHCE that featured industry experts and focused on the future of the industry.
The “Outdoor Hospitality and the Future” panel included Toby O’Rourke, president and CEO of Kampgrounds of America Inc.; Rafael Correa, CFO at Blue Water Development Corp.; Amir Harpaz, the owner at Harp Development and multi-park owner; Ali Rasmussen, CEO and creative director at Spacious Skies Campgrounds; and Todd Wynne-Parry, managing director at Horwath HTL and CEO & founder of Montare Hospitality Advisors, LLC
It was kicked off with a short speech by O’Rourke that focused on headwinds and tailwinds impacting the industry.
“This is truly an exciting time for this industry,” she noted. “There is more interest in camping and outdoor experiences than ever before and everyone is having record years. At KOA, we are up over 40% from where we were before the pandemic.”
O’Rourke said many people in the industry are wondering if things will continue in this direction and reported that the industry has a lot to be optimistic about.
“I am very optimistic about the economy and so are campers, with 66% of campers feeling positive about the economy,” she explained. “49% are looking to spend more, 37% want to take more trips and 33% are looking to travel even further.”
O’Rourke mentioned that many economists are still wondering if a recession will take place, but noted that KOA — along with other outdoor recreation businesses — did well during the last recession. From 2008-2012 the franchise system saw a 9.7% increase in revenues because camping ss viewed as an affordable activity and a cost-friendly way to travel.
“No doubt the economy is a significant headwind for the RV industry and manufacturers are seeing steep declines in shipments, but the positive side is that RVing as an activity is still very healthy,” O’Rourke noted. “12 million households own RVs already, 47% are more likely to use an RV for more trips instead of other types of travel and 21% are likely to buy an RV.”
She told the audience that 57% of all campers are likely to continue camping and that 44% of all campers are new to camping and had only jumped in over the past few years.
O’Rourke highlighted that the industry needs to continue providing great service in order to retain campers, with research showing that 69% of new campers are lukewarm about camping in the future.
“A bad experience can cause them to take an exit ramp and then we lose them as a customer in the future,” she explained.
O’Rourke said that for new campers, staff assistance is key so that they feel less anxiety and enjoy more time with their loved ones.
“Exceptional hospitality is not a one-size-fits-all model,” she noted. “Demographics are shifting dramatically and park owners need to recognize that.”
O’Rourke also highlighted that safety is a huge issue for campers, with 37% of campers saying they do not feel safe and secure while camping.
“Moms are going to take their kids somewhere they feel safe,” she said.
Amenities and accessibility are also key.
“Four in 10 campers say they have difficulty walking or climbing stairs and 27% have difficulties with social interactions and communications that impact their ability to be exposed to crowds,” noted O’Rourke. “Campers want to know what campsites are accessible and meet their needs before they book.”
Wrapping up, O’Rourke said that the industry was heading in a positive direction.
“I think the outlook is very strong,” she said. “There are more tailwinds than headwinds ahead of us and we have carved out a key segment of travel and are poised to meet the demands of travelers.”
As the session shifted to the whole panel, Harpaz noted that if park owners create a positive experience, then that will lead to repeat business.
“It creates a positive memory,” he explained.
Wynne-Parry echoed that sentiment, noting that younger campers are looking for authenticity.
“They don’t want locations that all look the same and offer the same things,” he said.
Speaking about inventory management amid increasing interest rates and costs, Rasmussen said it is imperative that park owners increase rates but keep affordability in mind.
“I think you can hedge those increases with the experience that you provide as well,” noted Harpaz.
Correa said that he has enjoyed working with the resorts that Blue Water owns and has developed glamping options that are affordable to the “everyman.”
“We have this incredible foundation in this industry due to RVers and the people that are coming into our parks want to be a part of that scene and environment,” he noted.
On hiring, O’Rourke said that KOA continues to work with universities on expanding programs and attracting employees to the outdoor hospitality industry.
“Park owners also need to rethink what a work camper is,” she said. “Traditionally, they were thought of as retired couples, but we can broaden that scope to families and young couples…etc. If we expand that mindset and begin appealing to different demographics, then we can grow that too.”
Correa wrapped up the panel by noting that high-interest rates are a ‘wet blanket,” but that there are still plenty of opportunities to find financing in the market.
“Maybe not at the larger banks, but definitely at community banks that better understand the business,” he explained.
The conference is open to members of OHI and non-members. To learn more, click here.
