Analysis of the Campground and RV Park Industry · Analysis of the Campground and RV Park Industry...
Transcript of Analysis of the Campground and RV Park Industry · Analysis of the Campground and RV Park Industry...
Analysis of the Campground and RV Park IndustryWisconsin 2008
Including:• List of all campgrounds in the region sorted by rating and rate.• United States summary of Rate vs. Rating Report• Your selected state or region Rate vs. Rating Report• Number of campgrounds and number of campsites in the region as well
as average rating and average rate.• Ranges of maximum occupancy per site or rental unite based on the
latitude of your property.• Your own campground rate compared to your regional marketplace.• Step-by-step guide on how to use this information to set your rates for
your campground or RV park.
Based on Data Obtained From Woodall’s® 2009 Campground Directory Which Contains Information from the Year 2008
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Woodall’s® rates a campground for facilities and for recreational amenities. Each is rated on a scale of one to five. When the numbers are added together, this results in a rating of one to ten. Woodall’s® reports the highest rate that a campground charges. This rate would generally be for a full hook-up site in prime season.
Figure 1 and Tables 1 and 2 present this information from the 2009 Woodall’s® directory for the entire contiguous forty-eight states of the United States. The same information for the state of Wisconsin is presented in Figure 2 and Tables 3 and 4. A breakdown of the number of campgrounds and campsites which exist in Wisconsin is shown in Table 5. This information is helpful to understand the general business environment that exists in this state in this industry. A specific listing of each campground or RV park in Wisconsin sorted by Woodall’s® rating and maximum site rate is provided in Exhibit A. This information, combined with the demand that exists for a park, can be helpful in setting a rate structure to maximize the value and the cash flow of a business. Figure 3 gives a general indication of the maximum occupancy a camping business might expect based on its latitude, which affects the length of season that is available. The upper limit on occupancy usually requires a superior location in a resort area or other highly desirable location, or very extensive recreational facilities within the park. The lower end of the range is the likely maximum potential if a campground is in a very rural location. A specific step-by-step guide to setting overnight rates is in Exhibit B.
The Woodall’s® rating for “YOUR CAMPGROUND NAME”, and it’s maximum site rate, and how it fits within the campground industry in Wisconsin, is shown in Figure 4.
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United States of America48 Contiguous States
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TABLE 1 & 2: UNITED STATES OF AMERICA: PROJECTIONS AND VARIATIONS AT A GLANCE2010 projected rates are based on an annual increases of 5%
Woodall’s ® Rating
Average Highest Rate
2008
Range of Highest Rates 2008
1
2
3
4
5
6
7
8
9
10
$28.42 $20.00 - 35.00
$23.49 $14.00 - 59.00
$26.11 $12.00 - 65.00
$27.62 $10.00 - 80.00
$29.85 $12.00 - 75.00
$32.74 $15.00 - 100.00
$35.86 $12.50 - 120.00
$40.34 $15.00 - 120.00
$48.49 $15.99 - 375.00
$54.85 $24.00 - 450.00
Woodall’s ® Rating
Average Highest Rate in
2008
2010 Projected Highest Rates
1
2
3
4
5
6
7
8
9
10
$28.42 $31.26
$23.49 $25.84
$26.11 $28.72
$27.62 $30.38
$29.85 $32.84
$32.74 $36.01
$35.86 $39.45
$40.34 $44.37
$48.49 $53.34
$54.85 $60.34
$0
$12.00
$24.00
$36.00
$48.00
$60.00
1 2 3 4 5 6 7 8 9 10
$54.85
$48.49
$40.34$35.86
$32.74$29.85
$27.62$26.11$23.49
$28.42
Figure 1: Camping Rates vs. Woodall’s® Rating for United States of America: 2008
Ave
rage
Hig
h R
ate
Combined Woodall’s Rating
Wisconsin
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TABLE 3 & 4: WISCONSIN: PROJECTIONS AND VARIATIONS AT A GLANCE2010 projected rates are based on an annual increases of 5%
Woodall’s ® Rating
Average Highest Rate
2008
Range of Highest Rates 2008
1
2
3
4
5
6
7
8
9
10
N/A N/A
$17.75 $16.00 - 20.00
$24.73 $12.00 - 33.00
$25.86 $15.00 - 35.00
$26.98 $16.00 - 53.00
$30.15 $18.00 - 37.00
$34.45 $24.95 - 52.00
$41.62 $27.00 - 64.00
$47.03 $33.00 - 66.00
$63.39 $42.00 - 109.00
Woodall’s ® Rating
Average Highest Rate in
2008
2010 Projected Highest Rates
1
2
3
4
5
6
7
8
9
10
N/A NA
$17.75 $19.53
$24.73 $27.20
$25.86 $28.45
$26.98 $29.68
$30.15 $33.17
$34.45 $37.90
$41.62 $45.78
$47.03 $51.73
$63.39 $69.73
$0
$14.00
$28.00
$42.00
$56.00
$70.00
1 2 3 4 5 6 7 8 9 10
$63.39
$47.03$41.62
$34.45$30.15
$26.98$25.86$24.73
$17.75
$0.00
Figure 2: Camping Rates vs. Woodall’s® Rating for Wisconsin: 2008
Ave
rage
Hig
h R
ate
Combined Woodall’s Rating
Table 5: Campgrounds and Campsites - WI
Rating Number of Campgrounds
Average Rate
Average Size
Total Sites
% of Market
Campsites
Summary % of
Market
2 4 $17.75 34 135 0.4%
3 15 $24.73 60 903 2.7%
4 25 $25.86 94 2,357 7.0% 10.1%
5 44 $26.98 94 4,129 12.3%
6 49 $30.15 87 4,259 12.6%
7 46 $34.45 173 7,949 23.6% 48.5%
8 31 $41.62 190 5,894 17.5%
9 19 $47.03 361 6,857 20.4%
10 5 $63.39 240 1,202 3.6% 41.4%
Totals or Average 238 $32.93 142 33,685 100.0% 100.0%
Average Campground Rating $6.10
Average Campsite Rating $7.00
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Figu
re 3
: Lat
itude
vs.
Occ
upan
cy
Regional Rates and My Property
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$0
$14.00
$28.00
$42.00
$56.00
$70.00
1 2 3 4 5 6 7 8 9 10
$63.39
$47.03$41.62
$34.45$30.15
$26.98$25.86$24.73
$17.75
$0.00
$26.00
Figure 4: Camping Rates for Wisconsin Campgrounds and RV Parks: 2008
Ave
rage
Hig
h R
ate
Combined Woodall’s Rating
Your Own Campground Name Woodall’s Rating
Exhibit A: Wisconsin Listing Of CampgroundsCampground Name City Rating
FacilityRating
RecreationRating
CombinedSites # of
Rate Highest
Yogi Bear - Wisconsin Dells
Wisconsin Dells 5 5 10 263 $109.00
Hidden Valley Milton 5 5 10 232 $62.00
Pride of America Portage 5 5 10 372 $54.95
Smokey Hollow Lodi 5 5 10 213 $49.00
Stoney Creek Osseo 5 5 10 122 $42.00
Yogi Bear - Fremont Fremont 4 5 9 286 $66.00
Yogi - Bear Warrens Warrens 4 5 9 723 $65.00
Crystal Lake Lodi 4 5 9 430 $60.00
KOA - Hayward Hayward 4 5 9 179 $52.60
Plymouth Rock Camping Resort Plymouth 4 5 9 667 $52.00
Neshonoc Lakeside West Salem 4 5 9 248 $51.00
Lakeland Milton 4 5 9 678 $48.05
Lake Arrowhead Montello 4 5 9 225 $48.00
Yogi Bear Jellystone Camp Resort Caledonia 4 5 9 261 $47.00
Indian Trails Pardeeville 4 5 9 327 $46.50
Holiday Shores Wisconsin Dells 4 5 9 468 $44.00
River Bay Resort Wisconsin Dells 4 5 9 287 $44.00
Hickory Hills Edgerton 4 5 9 284 $42.00
Evergreen Wild Rose 4 5 9 482 $41.00
Stand Rock Wisconsin Dells 4 5 9 251 $40.50
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Westward Ho Fond Du Lac 4 5 9 338 $40.00
Quietwoods South Brussels 4 5 9 200 $38.00
Vista Royale Bancroft 4 5 9 275 $35.00
Lake Joy Belmont 4 5 9 248 $33.00
American World Hotel & RV Resort
Wisconsin Dells 4 4 8 60 $64.00
KOA - Wisconsin Dells Wisconsin Dells 4 4 8 127 $59.00
Green Lake Campground Green Lake 3 5 8 342 $52.00
Arrowhead Resort Wisconsin Dells 3 5 8 416 $52.00
Wagon Trail Campground Ellison Bay 4 4 8 140 $48.00
Badger RV Park @ Village Inn on the Lake Two Rivers 4 4 8 24 $47.00
Yogi Bear-Bagley Bagley 4 4 8 204 $46.00
KOA - Hixton Hixton 4 4 8 87 $45.50
Merry Mac's Camp'N Baraboo 4 4 8 210 $45.00
KOA - Fond Du Lac Fond Du Lac 4 4 8 101 $45.00
Baraboo Hills Campground
Wisconsin Dells 4 4 8 133 $45.00
Dell Boo Wisconsin Dells 4 4 8 151 $45.00
Tranquil Timbers Camping Retreat Sturgeon Bay 4 4 8 270 $44.00
Fox Hill Baraboo 4 4 8 125 $43.00
Wanna Bee Campground and RV Park
Wisconsin Dells 4 4 8 113 $43.00
Silver Springs Rio 4 4 8 300 $42.22
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Bass Lake Wisconsin Dells 4 4 8 68 $41.00
Buffalo Lake Montello 4 4 8 110 $40.00
Hiawatha Woodruff 4 4 8 170 $39.00
Lake Chippewa Campground Hayward 4 4 8 200 $38.00
Lake of the Woods Wautoma 3 5 8 300 $37.00
Camp Holiday Boulder Junction 4 4 8 236 $36.00
Tunnel Trail Wilton 4 4 8 80 $36.00
Chapparal Wonewoc 4 4 8 101 $36.00
Hi-Pines Campground & Resort Eagle River 4 4 8 185 $35.00
Wisconsin Riverside Resort Spring Green 4 4 8 174 $34.00
Kastle Campground Marion 3 5 8 700 $33.50
O'Neil Creek Chippewa Falls 4 4 8 391 $33.00
Pettibone La Crosse 4 4 8 160 $31.00
Peshtigo River Campground Crivitz 4 4 8 100 $28.00
Heaven's Up North Lakewood 4 4 8 116 $27.00
Dells Timberland Camping Resort
Wisconsin Dells 3 4 7 145 $52.00
Sherwood Forest Wisconsin Dells 3 4 7 203 $48.00
Yogi Bear - Sturgeon Bay Sturgeon Bay 3 4 7 274 $46.00
Happy Acres Bristol 3 4 7 224 $45.00
Crazy Horse Brodhead 3 4 7 207 $45.00
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Sky High Portage 3 4 7 224 $44.00
KOA - Madison Madison 4 3 7 99 $42.00
Wilderness Campground Montello 3 4 7 338 $42.00
Bonanza Wisconsin Dells 4 3 7 157 $42.00
Kilby Lake Montello 3 4 7 123 $40.00
Egg Harbor Campground Egg Harbor 3 4 7 123 $39.00
Blackhawk Campground Milton 3 4 7 518 $38.00
Door County Camping Retreat Egg Harbor 3 4 7 276 $37.00
Frontier Wilderness Egg Harbor 3 4 7 240 $36.00
Pineland Camping Park Big Flats 3 4 7 190 $35.00
Cedar Valley Campground Kewaunee 3 4 7 199 $35.00
Kewaunee Village Kewaunee 3 4 7 85 $35.00
Patricia Lake Minocqua 3 4 7 100 $35.00
Maple View Norman 3 4 7 100 $35.00
Pine Grove Campground Shawano 3 4 7 246 $35.00
Timber Trail West Bend 3 4 7 122 $35.00
Yukon Trails Wisconsin Dells 3 4 7 204 $34.00
Briar Wood RV Park & Campground Fairchild 4 3 7 45 $33.00
Sports Unlimited Prairie Du Chien 3 4 7 350 $33.00
Lynn Ann's Campground St. Germain 3 4 7 93 $33.00
Apple Creek Family Campground De Pere 3 4 7 138 $32.00
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
KOA - Oakdale Oakdale 4 3 7 74 $32.00
Willow Mill Rio 3 4 7 220 $32.00
Waupaca Camping Park Waupaca 4 3 7 114 $31.00
Lake Dubay Shores Knowlton 3 4 7 219 $30.00
Buckhorn Necedah 4 3 7 147 $30.00
Wolf River New London 3 4 7 139 $30.00
Duck Creek Pardeeville 3 4 7 130 $30.00
Flanagan's Pearl Lake Redgranite 3 4 7 250 $30.00
Log Cabin Resort Trego 3 4 7 30 $30.00
Grand Valley Kingston 3 4 7 200 $29.75
Timber Trail Algoma 3 4 7 95 $29.00
Chetek River Campground Chetek 3 4 7 100 $29.00
Top O The Morn Resort Iron River 3 4 7 61 $29.00
Tilleda Falls Tileda 3 4 7 43 $29.00
Country View Mukwonago 4 3 7 159 $28.00
Maple Heights Lakewood 3 4 7 100 $27.00
River's Edge Campground & Marina Stevens Point 3 4 7 115 $27.00
Whitetail Bluff Resort Cassville 3 4 7 98 $26.00
Hoeft's Resort & Campground Cascade 3 4 7 210 $25.00
River's Edge Somerset 3 4 7 422 $24.95
Indian Shores Woodruff 3 3 6 263 $53.00
The Harbor Campground Three Lakes 3 3 6 150 $45.00
Kalbus Country Harbor Oshkosh 3 3 6 57 $43.00
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Viking Village Stoughton 3 3 6 71 $42.00
Meadowlark Acres Family Campground Burlington 3 3 6 80 $40.00
Twin Springs Menomonie 3 3 6 82 $40.00
Parkland Village Black River 3 3 6 86 $37.00
Baileys Grove Baileys Harbor 4 2 6 97 $35.00
Leon Valley Sparta 3 3 6 125 $35.00
Highland Park Spooner 3 3 6 47 $35.00
Birkensee Resort & Campground Tomahawk 3 3 6 62 $35.00
Lake Lenwood Beach West Bend 3 3 6 130 $35.00
Country Roads Wisconsin Dells 4 2 6 100 $35.00
Wheelers Baraboo 3 3 6 139 $34.00
Red Barn Shell Lake 3 3 6 65 $34.00
Lost Falls Resort Black River 3 3 6 40 $32.00
Washington Island Campging Retreat
Washington Island 3 3 6 98 $32.00
Six Lakes Resort Chetek 3 3 6 173 $31.00
Lac Du Flambeau Tribal Campground
Lac Du Flambeau 3 3 6 70 $31.00
Country Quiet RV Park & Campground Cumberland 3 3 6 102 $30.00
Voyager Village RV Park Danbury 3 3 6 45 $30.00
Pilgrim's Campground Fort Atkinson 3 3 6 89 $30.00
Reel Livin' Resort Hayward 3 3 6 44 $30.00
Devils River Maribel 3 3 6 125 $30.00
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Huckleberry Acres Campground New London 3 3 6 184 $30.00
Scenic View Spooner 3 3 6 45 $30.00
Rustic Woods Waupaca 3 3 6 180 $30.00
Blue Top Fremont 3 3 6 65 $28.50
Whispering Pines Campground Holmen 3 3 6 132 $28.00
Diamond Lake Family Campground Porterfield 3 3 6 55 $28.00
Frontier Bar & Campground Cedar 3 3 6 40 $27.00
Northforest Tomahawk 3 3 6 152 $27.00
Arbor Vitae Campground Woodruff 3 3 6 102 $27.00
Ahnapee River Trails Algoma 3 3 6 65 $26.00
Frenchman's Landing Prairie Du Chien 3 3 6 52 $26.00
Terrace View Campsites Tomahawk 3 3 6 45 $26.00
Northern Exposure Chetek 3 3 6 60 $25.00
Sunrise Bay Hayward 3 3 6 50 $25.00
Rustic Barn Campground Kieler 4 2 6 68 $25.00
Northland Camping Superior 3 3 6 85 $25.00
Seagull Marina Two Rivers 3 3 6 100 $25.00
S, J, & W Ham Lake Campground Wabeno 3 3 6 42 $25.00
Sisko's Pine Point Hayward 3 3 6 33 $24.75
Rainbow's End Reedsville 3 3 6 89 $24.00
Hiles Pine Lake Hiles 3 3 6 80 $23.00
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Big "H" Campground Cassville 3 3 6 50 $21.00
Keyes Lake Campground Florence 3 3 6 33 $21.00
Eagle Cave Natural Park Blue River 2 4 6 60 $18.00
River Forest Rafts & Campground White Lake 3 3 6 52 $8.25
Snug Harbor Inn Resort Delavan 2 3 5 143 $40.00
Southfork Campground Wisconsin Dells 2 3 5 180 $39.00
Crockett's Wisconsin Dells 2 3 5 174 $36.00
The Playful Goose Horicon 2 3 5 199 $35.00
Top of the Ledge Campground Stockbridge 3 2 5 110 $35.00
Blue Lake Wisconsin Dells 3 2 5 78 $35.00
Lake George Rhinelander 2 3 5 37 $34.00
Apostle Islands Bayfield 3 2 5 56 $32.00
Deer Trail Park Nekoosa 2 3 5 170 $32.00
Coloma Camperland Coloma 3 2 5 82 $31.00
Island Campground & Marina Hager City 3 2 5 108 $30.00
Bark River Jefferson 2 3 5 317 $30.00
Bear Lake Manawa 2 3 5 150 $29.50
Beantown Campground Baileys Harbor 3 2 5 67 $29.00
K & L Wisconsin Dells 2 3 5 100 $28.95
Big Lake Algoma 3 2 5 86 $28.50
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
River's Edge Campground Galesville 2 3 5 130 $28.00
Monster Hall Unity 2 3 5 193 $28.00
Monument Point Egg Harbor 3 2 5 84 $27.00
Cedar Point Resort Grantsburg 2 3 5 36 $27.00
Hickory Oaks Campground Oshkosh 3 2 5 70 $27.00
Aqualand Sister Bay 3 2 5 150 $27.00
Iola Pines Iola 2 3 5 75 $26.50
Big River Campground Prairie Du Chien 3 2 5 108 $26.50
Mohican RV Park Bowler 5 0 5 57 $26.00
Tilleda Falls Shawano 2 3 5 45 $26.00
D.N. (Do Nothing) Campground Balsam Lake 3 2 5 86 $25.00
River Ridge Campground Chippewa Falls 3 2 5 40 $25.00
Lake Hilbert Campground Goodman 3 2 5 105 $25.00
Whitetail Ridge Campground Sarona 3 2 5 82 $25.00
Country House Motel & RV Park Spooner 3 2 5 21 $25.00
Ox Creek Campground Montello 3 2 5 30 $24.00
Deer Creek Campground Pardeeville 2 3 5 60 $24.00
Pine Harbor Campground Chippewa Falls 3 2 5 45 $22.00
Loon Lagoon Mercer 3 2 5 40 $22.00
Moonlite Trails Campground Necedah 3 2 5 34 $22.00
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Kosir's Rapid Rafts & Campground Silver Cliff 2 3 5 38 $21.00
Lil' Yellow River New Lisbon 3 2 5 155 $20.00
Ponderosa Pines Plainfield 3 2 5 116 $20.00
Amnicon Acres Superior 2 3 5 50 $20.00
9 Mile All-sport Resort White Lake 3 2 5 50 $20.00
St. Joseph Resort Necedah 3 2 5 40 $19.00
Klondyke Secluded Acres Lancaster 2 3 5 87 $18.00
Granger's Oakdale 3 2 5 45 $16.00
Coachman's Terrace Lake Geneva 3 1 4 15 $35.00
Lazy Days West Bend 2 2 4 330 $33.00
McCaslin Mountain Athelstane 2 2 4 100 $32.00
Eureka Dam Campsites Omro 2 2 4 50 $32.00
Red Oak Baraboo 2 2 4 156 $30.00
Buffalo Bay* Bayfield 2 2 4 49 $30.00
Little Bluff Rio 2 2 4 135 $29.50
River Road RV Campground Hayward 3 2 4 24 $29.00
Pelican Lake Campground Pelican Lake 2 2 4 100 $28.00
Bluebird Springs La Crosse 2 2 4 148 $27.00
Holiday Lodge Tomah 3 1 4 27 $27.00
Adventureland Gordon 2 2 4 50 $26.00
Tomorrow Wood Hancock 2 2 4 170 $26.00
Turtle Lake Turtle Lake 3 1 4 70 $26.00
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Eagle Flats Wisconsin Dells 2 2 4 129 $26.00
Barron Motel & RV Campground Barron 4 0 4 17 $25.00
Benson's Century Camping Resort Campbellsport 2 2 4 250 $25.00
Circle R Oshkosh 2 2 4 132 $24.00
Tom's Campground Dodgeville 3 1 4 96 $22.00
Lake Pepin Campground Pepin 3 1 4 130 $22.00
Nemadji Trailer Park Superior 4 0 4 47 $22.00
Country Aire Camping Resort Babcock 2 2 4 29 $20.00
K & C Country Air Campground Birchwood 2 2 4 28 $20.00
Eagle's Landing Danbury 3 1 4 46 $15.00
Northern Hideaway RV Park Pearson 3 1 4 29 $15.00
Baileys Bluff Baileys Harbor 2 1 3 75 $33.00
Hy-Land Court Ellison Bay 3 0 3 30 $30.00
Path of Pines Fish Creek 2 1 3 95 $30.00
Happy Ours RV Park Gordon 3 0 3 75 $30.00
Country Villa Motel & Campground
Chippewa Falls 3 0 3 34 $28.00
Nordic Pines Baraboo 2 1 3 140 $25.00
Crossroads Campground Crivitz 3 0 3 21 $25.00
Kamp Kegonsa Stoughton 2 1 3 109 $25.00
Tomahawk Campground & RV Park Tomahawk 3 0 3 100 $25.00
Borderline RV Land O'Lakes 3 0 3 25 $24.00
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Campground Name City Rating Facility
Rating Recreation
Rating Combined
Sites # of
Rate Highest
Shady Acres Denmark 2 1 3 25 $23.00
Bavarian Campsites Mauston 1 2 3 70 $23.00
Alana Springs Campground
Richland Center 2 1 3 35 $23.00
Valley RV Park Spring Green 3 0 3 23 $15.00
Raft N' Rest Campground White Lake 2 1 3 46 $12.00
Brule River Motel & Campground Brule 2 0 2 20 $20.00
Elmer's Eau Claire 2 0 2 35 $18.00
Townedge New Glarus 2 0 2 25 $17.00
Birchwood Campground Boulder Junction 1 1 2 55 $16.00
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Exhibit B: Overnight Rate Setting
Once you understand your position within
the marketplace in which you operate, set
your rates objectively to maximize the
value and the cash flow of your business.
Use the following steps to eliminate the
emotional turmoil often involved in setting
your rates each year.
Step One:
Create or obtain a marketplace rate
analysis for your state as shown in
Figure 1. To create your own, obtain a
Woodall’s® Campground Directory, make
a list of each park, the combined
Woodall’s® rating, (one to ten) and the
h ighes t r a te t ha t pa rk cha rges .
Determine the average high rate for each
level of the combined Woodall’s® rating
categories. Create or obtain a table as
shown in Figure 2 which indicates the
variation in rates for each level of
Woodall’s® rated parks. This information
tells you where the market leaders are, as
well as the lowest rates in each peer
group.
Step Two:
Using the table provided in Figure 3,
which indicates the maximum site nights
per year per site which are achievable in
different latitudes, and an analysis of the
occupancies in your own park, determine
how much, if at all, you might reasonably
expect to grow the number of nights on
your existing sites.
Step Three:
Now that you know the rate structure in
your marketplace, and your own park’s
occupancy compared to your potential,
use elements of the following principles to
establish your rate objectives.
• Because I am near or at the
maximum site nights per year that is
attainable, I am going to be one of
the market leaders and set my rates
well above my peer group.
• Because I have substantial under-
utilized capacity, I will stay at rates
just above (or equal to) (or just
below) my peer group.
• In addition to the above, my park is
located in a premium (or difficult to
find or very rural location) and I
should adjust my peer group rate
upward (or downward) by about ten
percent.
• Because I am improving my park or
adding a major amenity, I anticipate
that my Woodall’s® rating will
increase and therefore will consider
my peer group to be one level higher
than it is now.
• I am already one of the market
leaders and have also reached my
occupancy potential. I will continue
to maintain rates at the top of my
peer group.
If your site nights per year have not been
increasing for several years and you are at
or near the maximum occupancy range in
Figure 3, you cannot expect to grow the
number of customers very much.
Occupancy levels that are at this level
mean that you are turning a substantial
number of customers away. In that
situation, your rates should be well above
the average of your peer group and you
should be among the market leaders. If
you have substantial ability to grow your
customer base on your existing sites,
having the highest rate in your market
area would probably not be wise. There
is very little reason to be the lowest rate in
your peer group. You are offering a
unique experience available only on your
property. Your customers’ decisions to
visit your park is based on many things.
For very few people is the rate you charge
the most important thing.
Step Four:
After understanding your marketplace and
your own park’s occupancy potential, if
your rates are in line with your new
philosophy, raise rates annually in a
fashion that is consistent with the rate
increases occurring in the marketplace.
Continue to monitor the marketplace
rates and your own occupancies. If your
rates are below where you believe they
should be, raise your rates aggressively
(ten to twenty percent per year) until you
get to the level consistent with your
marketplace and your philosophy. Again,
continue to monitor what is occurring in
t h e m a r k e t p l a c e a n d y o u r o w n
occupancies. Setting rates based on the
marketplace and your own occupancies,
in accordance with the above steps,
allows you to set a rate structure without
emotion to maximize the revenue and
cash flow of your business.