EXECUTIVE SUMMARY
An overview of the business that is to be established and the milestones that need to be achieved
EXECUTIVE SUMMARY
COMPANY PROFILE
XXXX RV Resort will be constructed as a standard and well-equipped campground and recreational vehicle park that will be located in Grants Pass, Oregon. The aim of the founder is to develop an RV facility fulfilling the recreational and camping needs of all families, including their children and pets. The facility will include all the basic amenities along with the most demanded amenities, including a swimming pool, sports facilities, Wi-Fi, a fitness center or gym, and separate dog parks. The founder has already secured the land at a central and easy-to-locate location at Grants Pass, Oregon. The professional team at the company will continuously make efforts to make XXXX RV Resort a preferred choice of families and campers in the United States. The team will also work hard to fulfill the recreational needs of an average family in the community.
BUSINESS MODEL
XXXX RV Resort will be engaged in operating and maintaining RV spaces or campgrounds (full-time or transient), organizing sports or leisure activities for the residents or travelers, or conducting other recreational activities for the visitors. The founder has already been operating a successful RV park in Lower River Road in Grants Pass, Oregon, which remains occupied for the full year. The experience gained through operating and managing this RV park will be beneficial in developing and managing XXXX RV Resort. The founder has conducted thorough market research before capitalizing on the idea of developing an additional RV facility and considers Grants Pass, Oregon as the right place to open an RV park. The facilities and amenities at XXXX RV Resort will include full-time residents, transient rentals, studio apartments, cottages, the main house, a café & other retail sales, laundry facilities, vending machines, and self-storage units. Different monthly rental charges have been fixed for the full-time and transient renters. Monthly rent for full-time RV facilities has been fixed at $750 per month + utilities and that for the transient RV facilities has been fixed at $55 per day. All other amenities or services, including the studio apartment, café, laundry, vending machines, etc. will be billed in addition to the basic rental charges based on the extent of usage by individual visitors.
TARGET CUSTOMERS
In terms of geographical reach, XXXX RV Resort will target families and campers in Oregon and California initially, with an aim to target the national population at a later stage through framing multiple digital marketing strategies. In terms of demographics, the company will target families who are looking to create a memorable and fun experience for their family hangouts and bonding, senior citizens, retired people, first-rime and regular campers, travelers, millennials, and people searching for unique traveling experiences. XXXX RV Resort will work towards providing services, facilities, and an environment that will help it reach out to its target market.
EXECUTIVE SUMMARY
INVESTMENT REQUIRED
The founder will invest equity funds in the business and will satisfy additional funding requirements from the combination of conventional and SBA loans. This document outlines the strategies that XXXX RV Resort will use to maximize its profits and lower its operating expenses. These strategies will ultimately increase the return on investment. To incorporate the company and develop the RV park facility, the company will need to invest heavily in purchasing the land, construction of buildings and facilities, development of amenities, purchase of equipment, purchase of furniture & fixtures, initial marketing, hiring human resources, insurances, etc.
This capital expenditure will be met by an investment of $1.6 million in the form of equity by the founder and $6.4 million in the form of debt financing (Evergreen Gross Debentures and Bank Loan).
BUSINESS MODEL
Develop an RV park in Grants Pass, Oregon aimed at targeting travelers and campers across the nation, with an initial focus on Oregon and California.
BUSINESS MODEL – THE ENTITY
INDUSTRY OVERVIEW
INDUSTRY OVERVIEW: Camping had been steadily growing in popularity before the pandemic, but experienced aggressive growth across the U.S. in the year 2020 (during a pandemic). It has been estimated that more than 86 million U.S. households consider themselves campers and 48 million of those households took at least one camping trip in 2020, up more than 6 million over 2019. 21% of the 48 million households who camped at least once in 2020 classified themselves as first-time campers. More than 80% of campers changed their camping habits in the year 2020, including working and schooling from the campground, turning to RVs for travel safety and security, and adding more weekdays to their trips, which, coupled with the influx of first-time campers, solidifies that many Americans turned to camping and the outdoors to make it through a challenging year. Data indicates a strong outlook for both the RV and the camping industries, with more people identifying as RV campers, more people buying RVs, and a very strong increase in interest year-over-year.
PROBLEM AND SOLUTION
PROBLEM AND SOLUTION: Grants Pass, Oregon has a large housing problem. To contribute to resolving the issue, the founder has decided to allow up to 40 pads to be used by full-time residents. Full-time residents locations are larger than typical RVs and are put into parks by owners who pay for long-term use and either visit their unit for their own use or for friends and family. The present RV Park at Lower River Road in Grants Pass, Oregon, which is managed by the founder, is catering to full-time residents and has a 100% occupancy.
COMPANY OVERVIEW
COMPANY OVERVIEW: Considering the growing preference among people to travel or camp post-COVID-19 pandemic, the founder has decided to construct and operate an RV park facility at XXXX Road, Grants Pass, Oregon aimed at providing space for RV travelers to spend their leisure time. In addition to providing space for RV travelers, the park will also provide access to multiple leisure activities. The facility will be named XXXX RV Park at Grants Pass. The facility will be launched under the company name XXXX LLC. The development of the facility will start in March 2022 and will be completed by September 2022.
FACILITY OVERVIEW: One way to ensure a high ROI is to look for RV parks that already have existing amenities in place. Modern RVers expect amenities such as swimming pools, sports facilities, Wi-Fi, fitness centers, and dog parks in the RV parks so that they can enjoy their vacations to the fullest. Properties with existing infrastructure (water, sewer, electrical, etc.) are essential to the modern RVers. Keeping in mind the expectations of RVers, the founder will construct a modern RV park or camping facility capable of fulfilling the everyday needs of the campers and enabling them to perform their office work while they are on vacation.
BUSINESS MODEL – THE ENTITY
FACILITY OVERVIEW
The RV park will be constructed over an area of 13.03 acres with more than 7,000 sq. ft. of historical building improvements that will serve as the recreation area for its 120 RV sites. The existing buildings and land area, including a 3,600 sq. ft. farmhouse that was remodeled in 2002, will provide the RVers with a large swimming pool, jacuzzi, pickleball courts, café, fitness center, and other amenities. The property has direct access to city water, sewer, electricity, and fiber optics. In addition to the existing historical buildings located on approximately 2.5 acres, more than 50 historical trees were planted in 2002 and can be traced back to Abraham Lincoln, George Washington, Lewis and Clark, and other historical figures.
The property will comprise of a total of 120 spaces, out of which approximately 40 spaces will be reserved to be rented out to long-term tenants and the balance of 80 spaces will be kept for the transient RV travelers.
DEVELOPMENT STATUS
DEVELOPMENT STATUS: The founder, XXXX, has successfully received preliminary approval to develop an area of 13.03 acres into a first-class RV Park with approximately 120 sites and extensive recreation amenities, utilizing the benefits provided by the existing historical buildings. The ground-breaking of XXXX RV Resort will start in March 2022, with an estimated completion date of September 2022.
GROWTH DRIVERS
EASE OF TRAVEL: Americans love hitting the open road with their loved ones in their own vehicles. Recreational vehicles (RVs) have made this (nationwide travel) easy, affordable, and fun for millions of families over the past decades.
POSITIVE IMPACT OF COVID-19: The outbreak of the COVID-19 pandemic forced people to stay and work from their homes. Spending all the time at their homes has created boredom among them and increased their stress levels. Therefore they are continually searching for ways to lighten the stress of the COVID-19 pandemic and spend their spare time in leisure activities. With the introduction of the vaccination drive, more people are feeling confident to travel within their countries. In this situation, RVs are the best options as these are the safest way to travel and spend leisure time. Thus, traveling in an RV became increasingly attractive for many families. RV dealers also reported selling out of RVs just as fast as they arrive from the manufacturers, all thanks to the global pandemic. Furthermore, RV sales are expected to increase in 2022, potentially becoming the single best year for RV sales in history.
GROWTH IN BOOKINGS: RV park owners and investors are seeing a surge of customers booking spaces well into 2022 with reservations up by 500% in most locations.
BUSINESS MODEL – THE ENTITY
GROWTH DRIVERS
WIDE RANGE OF TARGET CUSTOMERS: Previously, RVers were often retirees and summer vacationers. However, with the passage of time, an increasing number of Americans in different age groups have started embracing RVing as an everyday way of life, often living in RVs for months or years at a time. As RVing becomes more popular, RV park investments are quickly becoming an increasingly lucrative investment opportunity for entrepreneurs.
COMPANY OWNERSHIP
COMPANY OWNERSHIP: XXXX LLC will be owned and managed by the founder XXXX, holding a 100% share in the company. Barry is an experienced architect with years of experience in multiple real estate disciplines. He has been successfully managing and operating an RV park in Lower River Road in Grants Pass, Oregon, which remains occupied for almost a full year. His deep expertise and commendable knowledge in the real estate market will assist him in developing an all-in-one RV park for campers with the required amenities and managing the operations effectively.
The founder will employ a diverse team of professionals to manage the day-to-day operations of each segment of the RV park and assist him in conducting business operations smoothly. The RV spaces at the park will be advertised, rented, maintained, and managed by RV Park management and staff. The founder will ensure that he hires people that are qualified, honest, customer-centric, and are ready to work to help him build a prosperous business that will benefit all the stakeholders in the value chain. The company will also provide the required facilities to the staff members to keep them motivated to perform their duties with a passion to serve clients better.
GROWTH STRATEGY
GROWTH STRATEGY: The company will be perfectly positioned to capture a significant share in the campground and RV parks industry through the founder’s extensive experience and vast knowledge of the industry and his ability to develop a world-class RV park. The company is committed to investing in continual developmental and recreational activities to keep on innovating new services and develop business strategies for better utilization of available resources and increased overall profitability. The founder will employ a sufficient number of people to maintain the facility in perfect condition. To expand the business reach beyond Oregon, the company will invest heavily in developing multiple marketing channels and enhancing the overall customer experience that will help it to generate referral business in the future.
BUSINESS MODEL – THE ENTITY
BUSINESS NAME: XXXX LLC
INDUSTRY: RV park and campground industry
COMPANY INCORPORATION STATUS: Yet to be incorporated
GROUND-BREAKING:
ESTIMATED COMPLETION DATE:
FOUNDER: XXXX
FOCUS: To enhance the overall traveling and camping experience of visitors, helping to generate referral business and creating a brand presence.
BUSINESS LOCATION: XXXX Road, Grants Pass, Oregon
GEOGRAPHICAL FOCUS: The company will initially target people from Oregon and California. In addition to this, it will also use social media and other digital marketing strategies to capture the nationwide population.
FUNDING SOURCES: Combination of 25-year conventional and SBA loans of $6.4 million (with interest rates at 4.5% and 2.86%)
TARGET CUSTOMERS: People looking to create a memorable and fun experience for their family hangouts and bonding, senior citizens, retired people, first-rime and regular campers, travelers, millennials, and people searching for unique traveling experiences.
COMPETITORS: Holiday RV Park, Seven Feathers RV Resort, Old Stone Village, and Premier Resort
CORE STRENGTH: Experienced founder and professional team, a unique facility with added amenities in addition to the basic ones, and central location.
OVERALL OBJECTIVE: To develop camping and recreational facilities for people in Grants Pass, Oregon, and help them achieve their camping goals while enjoying funfilled activities with their children and pets with an overall objective of contributing to the community’s living.
BUSINESS MODEL – ACCOMPLISHMENTS TO DATE
Current Portfolio: The following portfolio represents some of the projects that were designed, built, and operated by Barry and his staff over his long career.
Poway Storage West Self Storage Poway Storage West Ocean Side
Stonecrest Chevron Auto Center
Stonecrest Auto Center Auto Center
San Marcos Starbucks Drive Thru
San Marcos Chevron Auto Center
Rancho Bernardo Condo Arjons Business Park Condo, Office
Midway Shell Auto Center
Extra Storage Space
Miramar
Extra Storage Space Arjons
Midway Auto Center Auto Center
Encinitas Chevron Auto Center
Encinitas Chevron Car Wash
California Autohaus Auto Center
EI Norte Auto Center Cornerstone Court Office Emerald Self Storage
BUSINESS MODEL – GRANTS PASS OVERVIEW
LOCATION: Grants Pass is conveniently located right off Interstate 5, just one hour north of the California border. It is a hub to many nearby attractions, including 2 National Forests and one of the largest wilderness areas in the West, the Kalmiopsis, where rare and unique botanical wonders abound. Just down the road is the Oregon Caves National Monument and it’s just a short drive to Crater Lake National Park, the Pacific Ocean, and Redwood National Park.
LEISURE: Grants Pass is ready to help people unwind and enjoy. People can stroll through the downtown and check out the specialty shops, see the historic buildings, browse the antique stores, and admire the art galleries. They can choose from a variety of fine dining options to stop in for a meal, glass of wine, or cup of tea. They can also relax at one of the many wineries offering award-winning wines. They can check out a brewery or two and sample some locally made brews. They can also have a picnic by the river in one of the spacious parks. Once people find their place of leisure, they can set their watch aside and relax.
ADVENTURE: Grants Pass is a natural amusement park for those who love the outdoors. See why such legends as Clark Gable and Zane Grey made Grants Pass their vacation destination. The Rogue region is home to many expert guides who will outfit the party for safe and spectacular trips down the Rogue, Klamath, North Umpqua, and more. Whether they have a captivating interest in fishing, rafting, touring the Rogue River on a jet boat, hiking or cycling the trails, or playing sports at the parks, Grants Pass is the ideal place for them. The Pacific Northwest adventure starts here, in the classic Oregon river town. It is a year-round playground for outdoor enthusiasts of every age.
COMMUNITY: People in Grants Pass invest in and care about their community. Thus, they are always looking for ways to improve and add character to their already distinguished town. They have a revitalized town with a booming historic district. The place also hosts the state’s longest-running outdoor growers and crafters market. People will find an award-winning pedestrian bridge crossing the Rogue River that links an expensive community-built sports park with the Josephine County Fairgrounds. By adopting a ‘can do’ attitude, shaping the vision, leveraging the sources, raising strong leaders, and encouraging entrepreneurial approaches, Grants Pass is always moving forward.
BUSINESS MODEL – GRANTS PASS
ABOUT: Downtown Grants Pass has been designated a national historic district because of its historic buildings. But there is so much more that makes it special. Along with the shops and eateries, there is a weekly outdoor Southern Oregon grower’s market, plenty of free offstreet parking, and a Downtown Welcome Center. This core business district of Grants Pass is alive with activity and opportunities for small businesses. The entire Downtown has received a major multi-milliondollar facelift with new streets, sidewalks, and other amenities designed to create a more pedestrian-friendly and economically vibrant atmosphere. It is the prime location for many events and attractions.
People will also find the historic Rogue Theatre offering a range of musical entertainment. Day and night, people can find great dining, beautiful historic buildings, public art, and fun annual events in Downtown Grants Pass.
UNIQUE SHOPS: When people arrive in historic Downtown Grants Pass, they will find an abundance of unique shops, exclusive boutiques, art galleries, antique stores, and more. People can explore unique and one-of-a-kind merchandise not found in shopping centers elsewhere. They can discover the warm welcome of a greeting from friendly locals who own and appreciate the Downtown business. In Downtown Grants Pass, everyone is an ambassador for a thriving historic community.
DINING: People can enjoy dining at one of the many Downtown eateries and brewpubs, where the options range from the cozy atmosphere of a classic coffee house with delectable pastry or having a bite of a scrumptious tea at a distinguished restaurant while sipping on local Oregon wine. Downtown Grants Pass offers an alternative for every taste and budget.
BUSINESS MODEL – MISSION AND VISION
MISSION
To provide an unforgettable camping and lodging experience to RV travelers, supported by the right facilities, management, and organization with the aim of creating 5-star reviews.
VISION
To be known as the premier & worldclass campground and RV park facility that supports the full engagement of families in fun-filled camping and a recreational environment.
BUSINESS MODEL – GOALS
SHORT-TERM
▪ To hold itself accountable to the highest standards by meeting its visitor’s needs precisely and completely.
▪ To provide a first-class RV park experience to customers seeking to build lasting memories camping with the family or affordable temporary housing for themselves or their guests.
▪ To create a stress-free experience through multiple amenities and recreational activities.
▪ To implement a strong marketing campaign through the website, social media, radio, outdoor, and print advertising.
▪ To develop a user-friendly website allowing people to book their space online.
▪ To maintain and continue to hire qualified personnel as needed.
▪ To create an efficient scheduling system to maximize RV park usage.
▪ To promote the company’s culture, good values, and business philosophy.
MEDIUM-TERM
▪ To sponsor annual community events focused on increasing customer growth and exposing XXXX RV Resort to potential customers.
▪ To increase the occupancy rate to more than 80% within the first 3 years.
▪ To review and measure the RV Resort’s growth and performance periodically, aligning business strategies with existing market trends.
▪ To build organizational capacity and expertise to support the expansion and ensure the highestquality delivery in all areas of work.
▪ To maintain an open, accountable, and transparent culture across all levels in the company.
▪ To develop additional amenities and facilities at the site to keep customers engaged and attract new ones.
▪ To capture a greater market share by making additions to the portfolio of services offered by the company and exploring additional space for development.
LONG-TERM
▪ To position XXXX RV Resort as the top player in the tourism industry through effective local, regional and national coverage and by special event promotions.
▪ To expand the business reach throughout the United States.
▪ To continuously seek new opportunities in the campground and RV parks industry and frame multiple strategies to capitalize on the same.
▪ To achieve a significant share in the campground and RV parks industry in the United States.
▪ To achieve a higher return on investment than peers operating in the industry and reach sustainable and profitable growth.
▪ To continually explore new ideas to make XXXX RV Resort a preferred choice of people looking to create memorable traveling experiences.
▪ To build the business through returning customers and referrals.
BUSINESS MODEL – CRITICAL SUCCESS FACTORS
EXPERIENCED FOUNDER
The founder of the company has extensive experience in the real estate (as a general contractor) and architectural industry (more than 50 years), which will help him to develop an all-in-one RV resort with multiple amenities and manage the RV resort in an effective manner. He has already been running a successful RV park in the Grants Pass area, which remains occupied for almost the full year. The founder has gained a lot of experience while managing the existing RV park and he will capitalize on this expertise to create an amazing facility and maintain a high occupancy rate throughout the year. He will leverage his expertise, strong domain knowledge, and personal networks to create a successful RV Resort and establish long-term customer relationships driving repeat and referral business.
CUSTOMER SERVICE
Overall customer satisfaction is crucial to the business’s continued expansion, and a team of dedicated staff will assist the company in building a loyal customer base that will make the business successful. The company will establish a feedback system through multiple online and offline channels so that corrective actions can be taken as soon as possible through improving the overall customer service. Some of the team members at the existing RV park at Grants Pass will support the development and operations at the new facility initially and assist the new joiners to manage the business effectively.
LOCATION
EXTENSIVE MARKETING STRATEGIES
XXXX RV Resort will leverage social media and other online & offline marketing strategies as marketing tools to target its potential customer base. It will also invest in becoming a thought leader in its segment, and this will allow it to be discovered by prospective customers (people looking to create memorable and fun experiences for their family hangouts and bonding, senior citizens, retired people, first-rime and regular campers, travelers, millennials, and people searching for unique traveling experiences) across the targeted locations. The founder will also leverage his personal business network and join the local social media forums & groups to encourage more and more people to visit the company’s facility. The essence of this is to create a strong brand presence in the campground and RV parks industry.
STRONG TEAM
The company will employ a well-rounded and diverse team of professionals with great character and experience. These professionals will be responsible for ensuring that people enjoy their vacations to the fullest and leave the facility with memorable experiences. The customer’s best interest and safety will always come first, and everything done by employees will be guided by the company’s values and professional ethics. The staff will show care, compassion, and understanding to the visitors, which will help them to remain competitive with other players in the market. The professionals will consistently provide exceptional customer service, always be available and responsive to customers’ requirements, and maintain the company’s integrity by staying true to the morals and values of XXXX RV Resort.
XXXX RV Resort will be located at Grants Pass, Oregon. It is a perfect location to start an RV park business, as the county is conveniently located right off Interstate 5, just one hour north of the California border. It is a hub to many nearby attractions, including two National Forests and one of the largest wilderness areas in the West, the Kalmiopsis, where rare and unique botanical wonders abound. Just down the road is the Oregon Caves National Monument, and it is just a short drive to Crater Lake National Park, The Pacific Ocean, and Redwood National Park. Being close to these attractive locations will allow the company to attract people searching for a central location from where they can visit the nearby places easily and conveniently.
BUSINESS MODEL – XXXX RV RESORT
KEY PARTNERS
▪ Banks and financial institutions
▪ Construction contractors
▪
▪ Service enablers
▪ Insurance companies
▪ Local food and ingredients suppliers
▪ Media
KEY ACTIVITIES
▪ Acquisition of land and development of the RV Resort
▪ Build and launch a user-friendly website
▪ Maintain and operate the RV facility effectively and profitably
▪ Networking
▪ Business development
▪ Maintain service standards
▪ Manage daily, monthly, and yearly bookings
▪ Customer support
KEY RESOURCES
▪ Experienced founder and managing team
▪ Robust web platform
▪ Customer database
▪ Financial resources
▪ Founder’s network
▪ Dedicated team
COST STRUCTURE
▪ Land and construction cost
▪ Human resources
▪ Infrastructure and basic amenities
▪ Facility repair and maintenance cost
▪ Advertising and marketing cost
▪ Legal and professional cost
▪ Security
▪ Supplies
VALUE PROPOSITION
▪ Quiet, peaceful, and natural surroundings.
▪ Affordable family destination offering multiple amenities and recreational activities.
▪ Community involvement.
▪ Exceed visitors’ expectations.
▪ All-inclusive resort.
▪ Competitive prices compared to other RV parks in the target location.
▪ Comfortable and enjoyable travel experience.
▪ Quality services by excellence-driven staff.
▪ Premium quality food.
▪ Flexibility to choose different packages and facilities.
▪ Provide regular training, motivation, and guidance to employees to serve visitors better.
CUSTOMER RELATIONSHIPS
▪ Social media
▪ E-mail newsletters
▪ Reputation
▪ Personal engagement
▪ Word of mouth
▪ Content sharing
▪ Community involvement
▪ Customer feedback and rating
▪ Referral discounts
CHANNELS
▪ Website
▪ Third-party venue or hotel booking websites
▪ Referrals from existing customers
▪ Founder’s network
▪ Travel agents and travel bloggers
REVENUE STREAMS
▪ Revenue from full-time residents
▪ Revenue from transient rentals
▪ Revenue from the studio apartment
▪ Revenue from cottage
▪ Revenue from the main house
▪ Revenue from café and other retail sales
▪ Revenue from laundry facilities
▪ Revenue from vending machines
▪ Revenue from self-storage units
▪ Revenue from Massage
CUSTOMER SEGMENTS
Target Geography
▪ Oregon and California initially
▪ Rest of the United States
Target Demographics
▪ People looking to create memorable and fun experiences for their family hangouts and bonding
▪ Senior citizens
▪ Retired people
▪ First-rime and regular campers
▪ Travelers
▪ Millennials
▪ People searching for unique traveling experiences.
BUSINESS MODEL – RISK AND MITIGATION STRATEGIES
RISK MITIGATION STRATEGY
REPUTATION
▪ Create a camping environment where every person is treated with dignity, care, respect, fairness, responsibility, and honesty
▪ Have the core values rooted in the business model.
▪ Establish a positive culture regarding compliance with laws, regulations, and internal policies.
FINANCIAL RISKS
▪ Use financial statements to benchmark financial and operational performance against industry averages.
▪ Establish a proper record-keeping mechanism.
▪ Develop a strategic operational plan to control the expenditure by following pre-set procedures.
▪ Careful use of long- and short-term financing.
▪ Purchase insurance policies to mitigate the risk.
SAFETY OF VISITORS
▪ Implement strategies to minimize the risk of COVID-19 transmission among staff and campers arriving at the facility or park.
▪ Take precautions to minimize the risk of COVID-19 transmission among campers and staff in common spaces (e.g., cafeterias, playgrounds, laundry facilities, vending machines, retail markets, etc.).
▪ Establish a communication protocol regarding COVID-19 risks and safe operations for campers, their families, and staff.
▪ Disinfect shared items and equipment thoroughly between users and at the end of each day.
▪ Increase maintenance staff for facility cleaning and disinfection.
▪ Designate area for each camper to store personal equipment.
▪ Ensure that the swimming pool is surrounded by a fence.
▪ Ensure that staff are instructed in how to supervise and manage children near natural water areas.
▪ Ensure that rules are reviewed by leaders prior to hikes planned near rivers or other natural water areas.
HUMAN RESOURCES
▪ Provide training to existing and new staff that includes emergency procedures and precautionary strategies, including handling injuries, fires, and earthquakes, and search and rescue procedures.
▪ Ensure that a full-time health specialist is on staff throughout the year.
▪ Foster a reporting culture across the multiple divisions to their respective division heads.
▪ Establish trust in the company’s hierarchy.
▪ Assign the tasks to the right team.
▪ Improve wages, benefits, and working conditions to attract and retain “better”, more qualified staff.
▪ Involve employees in making operating decisions so that they feel encouraged to work at their maximum potential.
COMPETITION
▪ Find and resolve the customer’s pain points.
▪ Devise a competition-based pricing strategy.
▪ Introduce brand loyalty programs for repeat customers and referral incentives for bringing new leads.
MARKET RESEARCH
Analysis of the RV parks and campgrounds industry in the United States, including data concerning the segment of people most interested in spending a higher amount on leisure activities, growth drivers, and location analysis
MARKET RESEARCH – RV PARKS & CAMPGROUNDS IN THE U.S.
INDUSTRY OVERVIEW: The players under this industry operate recreational vehicle (RV) parks and campgrounds, as well as recreational and vacation camps. The industry also includes trailer and caravan parks and wilderness camps. Industry establishments cater to outdoor enthusiasts and commonly provide access to facilities such as washrooms, laundry rooms, recreation halls, and playgrounds.
INDUSTRY OUTLOOK: Over the last five years, the industry has experienced relatively steady growth, with the exception of the volatility in 2020 due to travel restrictions amid the COVID-19 pandemic. The industry is primarily driven by travel-related trends because trips to recreational vehicle (RV) parks and campgrounds are considered costefficient alternatives to traditional vacations. An increasing amount of time spent on leisure and travel has contributed to strong growth for industry operators. Furthermore, high employment and disposable income levels through most of the period led to heightened levels of domestic travel.
MAJOR SEGMENT: Adults aged 50 and older comprise the key customer segment for the industry. This generation typically has more disposable income and leisure time available to spend on long vacations, which has benefited industry operators. Over the five years to 2021, the number of adults aged 50 and older is estimated to increase at an estimated annualized rate of 1.3%. However, younger generations are emerging as another key demographic, particularly millennials. This demographic shift will provide organic growth for industry operators moving forward.
INDUSTRY REVENUE: In trend with increasing time spent by Americans on leisure and domestic in-bound travel & tourism in the United States, the industry revenue has increased from $6.5 billion in 2015 to $7.9 billion in 2019.
However, a sharp decline in domestic travel during the pandemic, driven by travel restrictions and consumer fears of the virus in 2020, caused the industry revenue to decline to $5.5 billion in 2020. Moving forward, over the five years to 2026, the industry is expected to revive from the COVID-19 pandemic’s effects, as the rollout of vaccines, increasing preference for domestic travel, and increasing per capita disposable income will enable more Americans to travel inbound. Consequently, the industry revenue is forecast to increase at an annualized rate (CAGR) of 3% between 2021 and 2026 and to reach $7.3 billion by 2026.
INDUSTRY REVENUE IN THE UNITED STATES (IN BILLIONS)
$7.3 Billion
Industry revenue in the U.S. by 2026 as compared to $5.5 billion in 2020.
15,367
The number of businesses in the industry in the U.S. in 2020.
170%
RV sales surged 170% in some regions in the United States in 2020.
14.5%
Projected growth in the industry revenue in the United States in 2021 alone.
3%
Industry revenue in the U.S. is forecast to grow at a CAGR of 3% between 2021 and 2026.
MARKET RESEARCH – DEMOGRAPHICS
MAJOR TARGET CUSTOMERS: RV communities tend to attract older populations because they provide a sense of belonging and security, as well as because many in this group are retired and have more free time. The number of adults aged 50 and older has grown at an estimated annualized rate of 1.3% over the five years to 2021, which has boosted demand for industry services. The advantages of flexibility and freedom to visit several places, as well as the availability of a wide range of services catered to that age group, have attracted this segment of the population to industry services. Thus, RV dealers sell significant volumes to customers who are retired or near retirement. Greater RV demand from this group has translated into more potential customers for the industry, as owners started to use new RVs and campers to go on vacations.
FUTURE PROSPECT: Meanwhile, younger customer groups are expanding as camping has increased in popularity as a less expensive type of vacation. Adults aged 20 to 65, which includes millennials and Generation X, have been an increasing market segment driving the rising trend of camping. According to the 2019 KOA North American Camping Report, Generation Z, millennials, and Generation X campers made up a combined 81% of total campers in 2019, a dramatic increase from the beginning of the current period. Furthermore, 96% of Generation Z campers enjoy camping with family and friends, and 90% of the younger individuals in the age group intend to camp as adults. Thus, while the industry has previously catered toward older generations, younger adults are demonstrating rising participation in camping, providing a key opportunity for industry operators. The factors driving the growth of the industry are as follows:
BABY BOOMERS: A promising case for long-term growth in RV sales is the aging baby boomer population. Baby boomers are expected to be wealthier and to live longer than previous generations, giving them more funds and leisure time, to the benefit of the industry. According to the RV Industry Association, an estimated one-tenth of vehicle owners in this age group also own RVs.
MILLENNIALS: In addition to baby boomers, millennials are expected to be a growing market for the industry. The rising popularity of luxury camping, or “glamping”, is expected to drive millennials to spend time at industry sites, especially those with young children. The population of adults aged 20 to 64, which comprises millennials in the lower half of the range, is expected to increase at an annualized rate of 0.2% over the five years to 2026. According to the 2020 KOA report, millennials are participating in camping at a rapid rate. In fact, in 2019, 57% of new campers were millennials and 29% of new campers were members of Generation X.
Gen Z, Millennials, and Gen X campers made up a combined 81% of total campers in 2019.
96% of Gen Z campers enjoy camping with family and friends.
57%
% of new campers in 2019 that were millennials. 29% % of new campers in 2019 that were a member of Gen X.
48 Average age of an RV owner.
90% of younger individuals intend to camp as adults.
An estimated one-tenth of baby boomers vehicle owners also own RVs.
MARKET RESEARCH – RV PARKS & CAMPGROUNDS IN THE U.S.
INDUSTRY LANDSCAPE: After many interest rate cuts, the industry's largest companies have been able to expand, consolidate and upgrade existing properties. As companies have expanded during the period, the number of industry establishments is estimated to increase at an annualized rate of 2.6% to 16,167 locations over the five years to 2021. However, the COVID-19 pandemic forced many operators to temporarily reduce facilities due to added restrictions and reduced demand.
Among the expansion and upgrades includes an increased emphasis on RV park and campground amenities. Many RV parks and campgrounds now offer facilities such as restaurants, swimming pools, and games rooms to attract new visitors. Some industry operators also offer access to golf courses and spas.
LESS COMPETITION: Building and maintaining these facilities increases the industry's initial capital costs and also acts to somewhat deter new, smaller companies from entering the industry, contributing to milder growth in enterprise numbers.
MAJOR MARKET SEGMENTATION: The major market segments are explained in detail as hereunder:
PEOPLE AGED 34 AND YOUNGER: This category of campers is estimated to constitute 44% of the industry revenue in 2021. People in this age group have increased camping activities to spend more time with family or friends, explore new areas, and are also attracted toward several outdoor activities that they could undertake while camping such as hiking, fishing, and swimming. Added attractions such as free WiFi and music festivals have also incentivized this population segment. This segment of the industry has grown over the five years to 2021.
PEOPLE AGED 35 TO 54: People under this segment are estimated to account for 37% of the industry revenue in 2021. Campers and RV park customers in this age segment typically have more time and disposable income to travel. Furthermore, more than three-fifths of the demand for the campgrounds and RV parks industry comes from people older than 45. According to the RV Industry Association (RVIA), the average age of an RV owner is 48. Furthermore, people aged 45 to 54 are generally at their peak earnings potential, but many adults in this age group still have young children and are years away from their retirement.
PEOPLE AGED 55 AND OLDER: This segment is projected to become the fastest-growing segment in the industry and is estimated to account for 19% of the industry revenue in 2020. According to the RVIA, nearly one in 10 RV owners are older than 55. This group still has a high level of disposable income, but because they are retired or near retirement, this group has a significant amount of leisure time.
Travelers aged 65 and older comprise a large part of industry demand within this segment. The first baby boomers have already shifted into this demographic category. Over the five years to 2026, the number of adults aged 65 and older is expected to increase. As this age group lives longer, more seniors will opt for camping or traveling in an RV as a vacation choice.
MAJOR MARKET SEGMENTATION
MARKET RESEARCH – RV PARKS & CAMPGROUNDS IN THE U.S.
PRODUCTS AND SERVICES SEGMENTATION: The products and services segmentation has been presented as hereunder:
CAMPGROUND MEMBERSHIP, TUITION, AND LONG-TERM FEES: Sales from campground membership, tuition, and long-term fees are expected to comprise 46.8% of the total industry revenue in 2021. According to a recent study, nearly one-third of the individuals stay at least 30 nights per person. Many industry operators also offer long-term membership fees, such as six-months and yearly.
RV AND TENT SITES FOR TRAVELERS AND OTHERS: RV parks are for vehicles that combine transportation and temporary living quarters for travel, recreation, and camping. The second-largest revenue source is RV and tent sites for travelers and others, which is estimated to account for 36.6% of the total industry sales in 2021. There are over 15,000 privately operated campgrounds and RV parks in the United States offering short-term stays for consumers. This segment is expected to increase in the near future as consumers are shifting travel plans to camping as opposed to other forms of accommodation to minimize the exposure risk of the virus.
OTHER UNIT ACCOMMODATION AND SERVICE FEES: Other products and services related to the various amenities offered at RV parks and campground facilities, such as gyms or tennis courts, are included in this segment. Sales of unit or room accommodation including food, drinks, and telecommunication services, as well as sales related to gambling services, combined, are expected to account for 16.6% of the total industry revenue in 2021. Over the five years to 2026, the revenue segment is expected to increase, as many campgrounds and RV parks have started to offer an increasing number of amenities to attract new customers.
MARKET SHARE CONCENTRATION:
The industry has a low market share concentration, with the three largest companies collectively generating an estimated 10.1% of industry revenue. The industry is composed of mostly smaller establishments, as according to Census data and IBISWorld estimates, an estimated 93.9% of industry establishments have fewer than 20 employees. However, consolidation in the industry has become more commonplace.
MARKET SHARE CONCENTRATION Major Minor
MARKET RESEARCH – RV PARKS & CAMPGROUNDS IN THE U.S.
BUSINESS CONCENTRATION: Business locations for the campgrounds and RV parks industry are concentrated according to three factors: population density, climate, and proximity to a place of interest. The industry tends to flourish in highly populated areas. California (7.7%), Texas (7.2%), and New York (5.6%) have the highest concentration of industry establishments. As a region, the Southeast (18.58%) has the highest concentration of RV parks and campgrounds. Industry establishments located in warmer climates benefit from year-round tourist patronage, while campgrounds in colder locations generally have seasonal operations.
Successful industry participants take advantage of their geographic location, whether this includes proximity to national parks, landmarks, lakes, or forests. States like Alaska, Arizona, Colorado, Montana, and Washington all have a greater share of industry establishments than the share of the U.S. population. For example, Maine has only a 0.4% share of the U.S. population, yet the state accounts for 3.4% of industry establishments. The popular Acadia National Park, located in Maine, was the first national park east of the Mississippi. This park's propinquity to Boston (264 miles) and New York City (492 miles) is a possible explanation for the highest concentration of industry establishments in Maine.
THE RV BOOM OF 2020
Over the past several years, preferences for RVing remained relatively stable in terms of the proportion of all campers, yet demonstrated a substantial jump in actual ownership rates (versus borrowing or renting) as well as the number of RVing households in the U.S. Among the subset of campers who prefer to camp in RVs, three-fourths own the RV they use most, which is up 12% points since last year (2019).
INCREASE IN RV OWNERSHIP IN 2020: The increase in RV ownership can be closely tied to the COVID-19 pandemic, with close to 6-in-10 new RV owners saying that RVing was a safer way to travel in light of the pandemic. Two-thirds of new RV owners also claim that their first camping experience was “great” (21%) compared to renters who are most likely to say that their first experience was “just OK” (43%).
MARKET RESEARCH – RV PARKS & CAMPGROUNDS
MARKET RESEARCH – RV OWNERS’ DEMOGRAPHICS
RV OWNERSHIP OVERVIEW: RVing is hugely popular among Americans. A recent study by the Recreation Vehicle Industry Association (RVIA) shows that RV ownership has increased over 62% in the last twenty years with a record 11.2 million RV owning households, split almost equally between those over and under the age of 55, with significant growth among 18-to-34-year-olds, who now make up 22% of the market. Additionally, an incredible 9.6 million households intend to buy an RV within the next 5 years. Among current RV owners who plan to buy another RV in the next five years, the numbers for millennials and Gen Zers stand out, with 84% of 18-to-34-year-olds planning to buy another RV, and 78% preferring to buy a new model. Taking off in an RV is becoming hugely popular with millennials, with over 15 million of them owning an RV in the U.S.
RV USAGE TRENDS: While the median annual usage for current RV owners remains steady at 20 days, people intending to buy an RV plan to use their RV for a median of 25 days per year. This increase is indicative of the changing attitudes towards remote work and the ability of more people to be able to work from a destination more frequently than traditional vacation days afforded in the past.
54%
% of RVers that take their family pets.
90%
% of RVers that say it is the best way of holidaying with their children.
14%
% of households that own Type A or fifth-wheel motorhomes.
11.2 Million
Number of households in the United States that own an RV.
22%
% of RV owners that are between 18 and 34 years.
48 Years
The average RVer in the U.S. is 48 years old, married, and tends to travel 3 times a year.
4,500 Miles
RVers drive on average 4,500 miles a year in their RV.
9.6 Million
Number of households that intend to buy an RV within the next 5 years.
1 Million
Nearly 1 million Americans live in recreational vehicles (RV) full-time.
1 in 5
1 in 5 RV travelers prefers to go on a hiking or trekking vacation involving camping.
40 Million+
Over 40 million Americans regularly go RVing, with over 25 million RVing a year.
MARKET RESEARCH – RV OWNERS’ DEMOGRAPHICS
HAPPY CAMPERS: Happy Campers love RVs and the adventures they bring. Primarily snowbirds, this group uses their RV as an escape for half of the year from both the weather and their household budget. They simply could not imagine their lives without an RV.
HAPPY CAMPERS PROFILE
KEY DEMOS
Age Range: 67% over 55
Gender: 56% Female, 44% Male
Employment: 49% retired
Average Annual Income: 50% under $65K
live with no children in home (under 18)
HAPPY CAMPER RV USAGE
MARKET RESEARCH – RV OWNERS’ DEMOGRAPHICS
CASUAL CAMPERS: Only using their RV for a few weekends a year in the warmer months, Casual Campers have thoroughly enjoyed the RV lifestyle and its provision of relaxation and an escape in nature for years. While a large and satisfied group in total, their low usage, and interest in other travel options make them least committed to the lifestyle.
CASUAL CAMPERS PROFILE
KEY DEMOS
Age Range: 82% over 55
Gender: 56% Female, 44% Male
Employment: 55% retired
Average Annual Income: 53% under $65K
live with no children in
USAGE
MARKET RESEARCH – RV OWNERS’ DEMOGRAPHICS
ADVENTURE SEEKERS: Small but mighty, this group of RV owners knows the world is for exploring. As outdoor enthusiasts that thrive on numerous hobbies, these adventure seekers can be found anywhere where there is wilderness to tame – hiking one minute and skiing the next.
ADVENTURE SEEKERS PROFILE
KEY DEMOS
Age Range: 34% of 35-54 and 56% of 55+
Gender: 53% Female, 47% Male
Employment: 50% retired
Average Annual Income: 53% under $65K
19% live with children in
MARKET RESEARCH – RV OWNERS’ DEMOGRAPHICS
AVID RVers: Avid RVers are committed to RVing every chance they have, using their RV for approximately a season. To this group, RVs provide both an opportunity for a romantic getaway and a chance to see the best that nature has to offer.
AVID RVers PROFILE
KEY DEMOS
Age Range: 62% over 55
Gender: 64% Female, 36% Male
Employment: 48% retired, 26% employed full-time
Average Annual Income: 51% over $65K 78% live with no children in
Avid RVers are 6% of the total RVers.
AVID RVers RV USAGE
MARKET RESEARCH – RV OWNERS’ DEMOGRAPHICS
ESCAPISTS: Committed to the RV lifestyle, this group of owners enjoys the freedom of exploration camping provides. Traveling as a family for two months of the year, these owners thrive in water-based activities and anywhere with natural beauty to soak in.
ESCAPISTS PROFILE
KEY DEMOS
Age Range: 54% over 55
Gender: 50% Female, 50% Male
Employment: 40% retired, 40% employed full-time
Average Annual Income: 60% over $65K
ESCAPISTS RV USAGE
MARKET RESEARCH – RV OWNERS’ DEMOGRAPHICS
FULL-TIMERS: Full-timers have adopted their RV as their home, living within the RV all year and embracing the lifestyle to its fullest. Traveling year-round, these nomad owners are set to see the world and appreciate the joys and freedom this lifestyle provides them.
FULL-TIMERS PROFILE
KEY DEMOS
Age Range: 35% over 55
Gender: 70% Female, 30% Male
Employment: 43% retired
Average Annual Income: 72% under $65K
11% live with no children in home
MARKET RESEARCH – RV OWNERS’ DEMOGRAPHICS
FAMILY CAMPERS: Most often growing up with an RV, family camper owners use camping to bond with family and spark the hobby for the next generation. Limited by their full-time employment, summer tends to provide brief periods of escape for these eager young owners.
FAMILY CAMPERS PROFILE
KEY DEMOS
Age Range: 52% of 18-34 and 48% of 3554
Gender: 53% Female, 47% Male
Employment: 64% employed full time
Average Annual Income: 58% over $65K
of
FAMILY CAMPERS RV USAGE
MARKET RESEARCH – LOCATION ANALYSIS
LOCATION OVERVIEW: Oregon is rich in ecological diversity, making it one of the most popular RV states for nature enthusiasts. There’s the dense lush forests, the high desert hot springs, a dramatic coastline, and everything in between. The state’s variety of outdoor recreation is endless. Oregonians, by and large, are proud enthusiasts of the great outdoors.
INDUSTRY ESTABLISHMENTS: The largest distribution of RV establishments in Oregon is concentrated in Curry County. This location accounts for 8.4% of the establishments in the region. Oregon has a relatively large number of counties when compared with other states. Moreover, this large number of counties has a fairly even distribution of businesses. Despite this, Curry County accounts for a significant enough share of the establishment distribution to maintain sway over industry trends in the state. While this location has influence over the region, the broad distribution across the state suggests that businesses can effectively establish themselves throughout Oregon.
POPULATION AND HOUSEHOLD INCOME:
In 2019, Oregon had a population of 4.22 million people with a median age of 39.7 years, and a median household income of $67,058. Between 2018 and 2019 the population of Oregon grew from 4.19 million to 4.22 million, a 0.645% increase, and its median household income grew from $63,426 to $67,058, a 5.73% increase.
The county with the highest median household income in Oregon was Washington County, OR, with a value of $85,734, followed by Clackamas County, OR, and Polk County, OR, with respective values of $80,294 and $72,914.
Males in Oregon have an average income that is 1.29 times higher than the average income of females, which is $53,962. The income inequality in Oregon (measured using the Gini index) is 0.457, which is lower than the national average.
22K Number of jobs generated by the RV industry in 2019.
11.6K
$67K Median household income in 2019.
Number of RVs manufactured in Oregon in 2019.
8th Oregon is the 8th best state for RV living.
4.22M Oregon’s population in 2019.
$4.3 Billion
RVs’ annual economic impact in Oregon in 2019.
$3 Billion
RV manufacturers and suppliers in 2019.
$675.8 Million
RV sales & services (2019).
$623.8 Million
RV campgrounds and travel (2019).
1,397
Number of RV businesses in Oregon in 2019.
MARKET RESEARCH – LOCATION ANALYSIS
Business concentration of campgrounds and RV parks in Oregon by Counties
MARKET RESEARCH – LOCATION ANALYSIS
Demographics within Josephine County
Households by Income
$35,000
MARKET RESEARCH – GROWTH DRIVERS
INCREASING PER CAPITA DISPOSABLE INCOME AND RV SALES: The per capita disposable income determines an individual's ability to purchase goods or services. The increase in per capita disposable income means individuals will have more spending power and will be able to spend on goods or services they wish for. In particular, per capita disposable income is forecast to increase at an annualized rate (CAGR) of 3.3% over the five years to 2021. The per capita disposable income has increased from $41,684 in 2015 to $47,768 in 2020 and is forecast to reach $49,531 in 2021. Over the five years to 2026, the per capita disposable income is expected to rise at an annualized rate of 2.5% to reach $56,056.
GROWING ECONOMY: The GDP of the U.S. is projected to increase from $20,807.27 billion in 2020 to $25,783.44 billion in 2025. The United States is one of the countries with the largest GDP per capita worldwide. The GDP per capita is forecasted to grow from $63,051 in 2020 to $76,475 in 2025. This increase in the national economy as well as per capita income will empower Americans to live a luxurious life and spend on leisure etc., which in turn will generate more demand for the company’s RV parks.
RISE IN SALES AND SHIPMENTS OF RVs: Typically, sales and shipments of RVs are directly related to the demand for RV spaces in RV parks and campgrounds. When sales and shipments of RVs increase, RV travel increases, resulting in greater demand for campgrounds and RV parks. The recreational vehicle dealers industry, which sells new and used motorized and towed RVs, has experienced revenue growth over the five years to 2021. In fact, according to the RV Industry Association, RV sales surged 170% in some regions in the United States in 2020.
As individuals have more financial stability, they have increased flexibility to spend time outdoors and on leisure and sports activities. The preference of Americans to travel domestically for leisure and the surge of 170% in RV sales in 2020 is set to create more demand for campgrounds and RV parks. The company, with its exceptional and welldesigned RV park, is in a perfect position to capture this increasing demand and gain a significant share in the market. Moreover, the founder of the company has experience of running a successful RV park in the past, which is an added advantage to the present venture.
TRAVEL REBOUND: The domestic trips by U.S. residents are forecast to increase at an annualized rate of 9.4% over the five years to 2026, while inbound trips by non-U.S. residents are expected to increase at an annualized rate of 22.7%. This drastic increase is due to pent-up demand for travel, as travel restrictions, border closures and consumer fears caused sharp declines in travel in 2020.
INCREASING RV SHIPMENTS IN THE U.S.: RV shipments in the United States have increased from 374,200 in 2015 to 423,628 in 2020 and are expected to hit 515,400 by the end of 2021. The increase in RV shipments will also increase demand for campgrounds and RV parks.
RV SHIPMENTS IN THE UNITED STATES
MARKET RESEARCH – GROWTH DRIVERS
TIME SPENT ON LEISURE AND SPORTS: Time spent on leisure and sports positively correlates with customers' demand for RV parks. Consequently, the overall demand for RV park industry services tends to rise when consumers spend more time on leisure activities.
Americans spent over one-fifth (5.32 hours in 2020) of their day on leisure activities. Across the population, men spend a greater portion of their day on leisure (5.5 hours) and work activities than women (4.9 hours). Not surprisingly, Americans over the age of 75 enjoy the greatest amount of leisure time, nearly eight hours a day.
AVERAGE DAILY HOURS SPENT ON LEISURE BY AGE GROUP
INCREASING DOMESTIC LEISURE TRAVEL: Leisure-based travel accounts for 73.8% of all tourism in America, leaving 26.2% for business and other reasons. Americans take 2.29 billion domestic trips each year. They spend $1,089 billion a year on travel, out of which expenditure on domestic travel amounts to $932.7 billion and on international travel amounts to $156.3 billion. Out of total expenditure on travel, Americans spend $267.7 billion on food services, $232.2 billion on lodging, $200.4 billion on public transport, $166.5 billion on auto transportation, $112.6 billion on recreation, and $109.6 billion on retail. By 2028, the U.S. tourism is estimated to reach $2.4 trillion.
Other key statistics are as follows:
▪ 22% of American vacations are via road trips.
▪ The USA’s top 5 road trip routes: #1 Las Vegas – National Parks, #2 Northern California - Southern Oregon Coast, #3 Northern New England, #4 Blue Ridge Parkway, and #5 Black Hills.
PER YEAR TRAVELED BY AGE GROUP IN THE U.S.
As leisure travel accounts for a huge portion of the tourism industry in the United States and is further expected to maintain its position in the years to come, it will ultimately create demand for RV parks, as more Americans are purchasing RVs (170% surge in sales of RVs in 2020). Moreover, the outbreak of the COVID-19 pandemic has restricted most people across the world from traveling outside the boundaries of their countries, which will ultimately increase domestic travel within the United States.
MARKET RESEARCH – TARGET MARKET
SENIOR CITIZENS
RETIRED PEOPLE
FIRST-TIME AND REGULAR CAMPERS
MILLENNIALS
PEOPLE LOOKING TO CREATE MEMORABLE AND FUN EXPERIENCES FOR THEIR FAMILY HANGOUTS AND BONDING
XXXX RV RESORT
TRAVELERS
PEOPLE SEARCHING FOR UNIQUE TRAVELLING EXPERIENCES
COMPETITOR ANALYSIS
A study of key players operating in the campground and RV parks industry, including basic information regarding facility area and amenities, and their strengths and weaknesses
MARKET RESEARCH – COMPETITOR ANALYSIS
HOLIDAY RV PARK: Holiday RV Park is a 5-star RV resort located in the heart of the Rogue Valley. The resort is only 3 miles south of Medford, and 7 miles north of Ashland. Holiday RV Park is the perfect spot to take in everything the valley has to offer from Shakespeare to Britt, vineyards to breweries, or fishing to golf. There is something for everybody in the Rogue Valley. Visitors can take their Phoenix motorhome rental to the stunning coasts of the Pacific Ocean, national forests, national parks, the Cascade Mountains, and northern California. The campsites at Holiday RV Park come complete with full hookups, with electricity, water, and sewer connections. Cable television and wireless internet are offered to park guests too. A laundry room is on-site, too, along with a small cafe, a camp store, a basketball court, and a heated swimming pool.
KEY STATISTICS: Other company statistics are as follows:
▪ The park has a total of 110 RV spaces, each equipped with full hookups (20, 30, and 50 amp). All sites in Rows B and C are pull-throughs (average 22 feet wide and 70 feet deep).
▪ Pets are allowed in the park on prior approval only and are not allowed in any park buildings. All dogs must be leashed at all times and walked in pet areas only.
▪ The company charges $49 daily, $295 weekly, and $800 for the month, plus $2 as daily tax. The company allows four people maximum per site. All utilities – water, sewer, electricity, cable (48 channels), and Wi-Fi are included in the rate charged by the park. It also charges $3 per day for each person over two to a rig. The charges for showers are 25¢ for 8–10 minutes.
STRENGTHS:
▪ The front-of-house staff at the company are very polite and responsive and attend to the guests very pleasantly.
▪ Holiday RV Park is just off of the highway, making it easy to reach.
WEAKNESSES:
▪ The company does not have any tent sites.
▪ The company charges for showers at 25¢ for 8–10 minutes.
▪ Most of the people complain about staff not wearing masks.
Phoenix, OR
Founding Year: 1981
Founders: Larry and Joyce Parducci
RV Spaces: 110
Discount Clubs: AAA, KOA, Good Sam, and senior discounts
Pets Allowed: Yes
Facilities and Amenities: Full hookups, clean showers, laundry facilities, heated pool, free Wi-Fi, and cable television
MARKET RESEARCH – COMPETITOR ANALYSIS
SEVEN FEATHERS RV RESORT:
Seven Feathers Casino Resort is centrally located within the Land of Umpqua. The resort is situated on 23 acres of manicured lawns and lush landscaping. It is a quiet and pristine place away from the hustle and bustle of the world in the heart of beautiful Southern Oregon. All sites have level, concrete pads, and aggregate patios. It has recently added custombuilt cabin rentals and yurt rentals. Seven Feathers also possesses Casino Resort, which ranks in the top 20 of Pacific Northwest properties and is one of the fastest-growing destination resorts in the region. Seven Feathers Casino Resort offers 25,000 square feet of contiguous meeting space. The resort has a free shuttle bus that takes riders back and forth between the casino and the resort. The shuttle can also take riders to different points in town.
KEY STATISTICS: Other company statistics are as follows:
▪ The amenities at the park include a heated pool and hot tub, fitness center, family-style showers and restrooms, barbeque pavilion, cable TV, Wi-Fi, and gift center, etc.
▪ The park has 191 full hook-up sites (30/50 amp), 104 pull-through sites, 87 back-in sites, 6 log cabins, and 3 yurts.
▪ Cabin rental packages include the Romance package ($259 + tax), and Relax & Rejuvenate Package ($299 + tax).
▪ The company also offers a 48-hour cancellation policy.
▪ There is a fenced pet area where pets may be allowed off-leash.
▪ There is also a Seven Feathers Travel Center at the exit for all the fuel needs.
STRENGTHS:
▪ The RVers are satisfied with the overall park design.
▪ The park is immaculately maintained and quiet and the staff are friendly.
WEAKNESSES:
▪ The bathrooms are locked up at night and are not available until 08:00 AM the next day.
▪ The majority of RVers are not able to connect to free Wi-Fi offered by the resort and the internet speed is also very low.
▪ Tenting is not allowed at the resort.
Founding Year: 2006
Founders: Cow Creek Band of Umpqua Tribe of Indians
RV Spaces: 364
Discount Clubs: Good Sam club, Family Motor Coach, AAA, AARP, Senior, Active or Non active Military
Pets Allowed: Yes (maximum 3 pets per site)
Facilities and Amenities: Full hook-up sites, pull-through sites, log cabins, yurts, indoor heated pool, fitness center, media center, gift boutique, laundry facilities, etc. Location: Canyonville, OR 2.64K Followers
MARKET RESEARCH – COMPETITOR ANALYSIS
OLDE STONE VILLAGE: Tree-lined streets and soft grassy knolls are just part of the appeal of Olde Stone Village, McMinnville Oregon’s premier recreational vehicle park and community. Tucked into the rolling landscape of Yamhill County, the park offers easy access to highways, as well as McMinnville’s shops, restaurants, scenic vineyards, and historic attractions. It is immediately adjacent to the Evergreen Aviation and Space Museum, home of the world-famous “Spruce Goose” and Evergreen’s aviation-themed IMAX Theater. The park is widely considered one of the best of its kind in Oregon.
KEY STATISTICS: Other company statistics are as follows:
▪ The park is perfectly located within easy distance of golf courses, Spirit Mountain Casino, wineries and tasting rooms, Mt. Hood, the Columbia Gorge, The Oregon Garden, and the spectacular Oregon Coast. It is also conveniently located close to Willamette Valley Medical Center.
▪ The park has 33 pull-through sites, and 38 back-in sites.
▪ The amenities at the park include free showers and restrooms, laundry facilities, a heated seasonal pool (from memorial day to labor day), 20-/30-/50-amp service, sports court, cable TV, Wi-Fi, and a village clubhouse, etc.
▪ It charges $65+tax for daily rent, $350+ tax for weekly rent, $654+electric (special monthly rate from November 1 to May 1), and these rates are based on 4 persons and 3 pets per RV. For every additional person over 4, it charges $1 per person per day, $3 per week, and $5 per month. It does not allow more than 3 pets per RV. Reservations for monthly stays will require a deposit of $150 at the time of booking.
▪ The company offers a 10% discount on a daily rate for Good Sam members. Moreover, Good Sam members can book for free, saving $5 by booking through Good Sam.
STRENGTHS:
▪ It has been rated by Woodall’s as a Diamond Club recognized RV facility for 5 straight years.
WEAKNESSES:
▪ No lifeguards are on duty at the swimming pool.
▪ No tent or outdoor camping is available at the facility.
Location: McMinnville, OR
2.64K Followers
Campsite Types: RV, Trailer
Industry: Consumer services
RV Spaces: 71
Discount Clubs: Good Sam club, military discount
Pets Allowed: Yes (maximum 3 pets per site)
Facilities and Amenities: pullthrough sites, back-in sites, full hook-ups, laundry facilities, sports court, village clubhouse, etc.
MARKET RESEARCH – COMPETITOR ANALYSIS
YREKA RV PARK: Yreka RV Park is located in Yreka, California. It features spacious, full hookup campsites that are pull-through and big rig friendly. The park offers free Wi-Fi and satellite TV and allows pets, complete with a dog run. Yreka RV Park offers daily, weekly, and monthly RV site rentals. Campsite amenities offered at the RV park include a large community room that can host weddings and an outdoor pavilion. It also includes all the basic amenities like restrooms with hot showers and laundry facilities. Visitors can enjoy on-site activities such as horseshoe toss and group events. The park features 50-amp, full hook-up pull-through sites for the convenience of visitors. The park’s fullservice recreation room includes a kitchen with a large island and room for visitors and their guests. Its large dog park is a perfect place to let pets roam around without a leash.
KEY STATISTICS: Other company statistics are as follows:
▪ The 50-amp regular site is available at a daily charge of $43, a weekly charge of $190, and a monthly charge starting at $595.
▪ The 50-amp premium site is available at a monthly charge starting at $650.
▪ Park model units are available for long-term rentals only. The monthly rental for these is $1,075.
▪ Nearby attractions include West Miner Street Historic District (0.6 miles), The Wine Bar & Bistro (0.7 miles), and Franco American Hotel (0.6 miles). Many travelers enjoy visiting the Chinese Cemetery Memorial (0.4 miles) and Shasta's Chocolate Emporium (0.6 miles).
STRENGTHS:
▪ Visitors are satisfied with the staff’s behavior and responses.
▪ The park is clean and easy to navigate.
WEAKNESSES:
▪ No tents are allowed at the park facility.
▪ Most of the rules are not followed at the park by the internal staff as well.
▪ Yreka RV is a very basic park. No amenities are available at the facility, other than a small meeting room, bathrooms, and showers.
Location: Yreka, California
518 Followers
Founding Year: 2005
Founder: Sterling Tardie
RV Spaces: 102 (73 pullthroughs
Discount Clubs: Good Sam club, military discounts
Pets Allowed: Yes
Facilities and Amenities: Full hook-ups, pull-through sites, park models available for rent, dog park, Wi-Fi, etc.
MARKET RESEARCH – COMPETITOR ANALYSIS
MARKET RESEARCH – COMPETITIVE ADVANTAGE
ONE-OF-ITS-KIND DESTINATION WITH MULTIPLE RECREATIONAL AND LEISURE FACILITIES
There are more than 200 RV Parks in Southern Oregon. To be recognized as a unique and better facility amongst the crowd of multiple players in the campground and RV parks industry, XXXX RV Resort will offer a recreation compound on 2.5 acres of the 13.03-acre property that will be second to none. The main recreation building of approximately 3,600 sq. ft. is a beautifully remodeled 1900 farmhouse property featuring a gourmet demonstration kitchen, billiard room, and a library/internet room, allowing people to perform multiple recreational and leisure activities. In addition to this, there is a large covered exterior patio with a brick fireplace, and brick walkways leading to a large covered gazebo containing a 14’ diameter jacuzzi.
The facility will be constructed keeping in mind the requirements of not only adults but also their children and pets so that each member of the family can enjoy their vacations. An outdoor swimming pool with a children’s slide and extensive brick surfaced patios surrounding the pool with its own gazebo will be the center for children’s activities. Another offering will be a café serving snacks with covered seating for up to 50 guests. A massage studio, exercise facility, and 2 pickleball courts will be provided as well. A cedar-lined wine room available to the RV guests will be the perfect finish to a day of activities.
The RV area will have 4 buildings housing 12 private restrooms with showers and laundry facilities. A dog park and 48 unit storage building will be available for the exclusive use of the RV guests. An activity director will schedule live music, food demonstrations, barbeques, and other activities.
EXPERIENCED TEAM
A business is not only as good as its services but also the quality of its staff as well. The company’s goal is to hire a hand-selected team of employees that have the same values as the founder. The founder will also conduct periodic staff meetings intended to review data, increase guest satisfaction, and keep the lines of communication between staff and management open. The team will also be provided with training at regular intervals to handle emergency situations and keep the visitors safe.
PROVEN TRACK RECORD OF MANAGING A SUCCESSFUL RV PARK
The founder is already managing and operating a successful RV park in Grants Pass, Oregon. Being already operational and providing quality services, the founder has already created a presence among people for the level of services and amenities offered at its facility. This will help the company in onboarding an initial base of customers at its new RV park facility in Grants Pass. The management and employees’ team at the company are also experienced in the campground and RV parks industry, which will assist it in managing the operations at XXXX RV Resort effectively.
FOCUS ON QUALITY AND AFFORDABILITY
The prices fixed by the company for the RVers are comparable to the market rates without compromising on the quality of services and availability of multiple amenities. This is due to the flexible business cost structures and efficiency, whilst delivering integrated services as compared to the other players operating in the market. In addition to this, the founder will himself oversee the operations at the RV resort during the initial phase of the business to ensure that the facility gets and maintains outstanding reviews from the customers, which in turn will generate referrals and repeat business.
MARKET RESEARCH – SWOT ANALYSIS
STRENGTHS
▪ The founder currently owns and manages a very successful RV Park in Grants Pass consisting of 41 sites, which remains occupied for almost a full year.
▪ Experienced management team with a proven track record of operating and managing RV parks.
▪ Wide range of recreational activities and amenities under one roof allowing the visitors to make their experience memorable.
▪ Strong marketing approach.
▪ Affordable full-time and transient packages.
▪ Historical locations at the site.
▪ Prime location as Grants Pass is today known as a haven for outdoor recreation adventurers.
▪ Clear and transparent communication within and outside the company.
▪ Strong marketing strategies.
▪ Effective communication with customers.
▪ Ability to create a unique customer experience through personalized services.
▪ Highly user-friendly and easy-to-use website allowing people to book the space well in advance.
WEAKNESSES
▪ Lack of funds to purchase the land and construct the RV facility initially.
▪ Difficult to onboard experienced professionals initially.
OPPORTUNITIES
SThe campground and RV parks industry is growing and evolving, and many new opportunities and threats come with that.
WSWOT
The industry can fluctuate depending on the national and local economies, although it remains somewhat consistent because of the growing aging and retiring population of the United States.
OT▪ Opportunity to expand the business reach beyond Oregon and California by framing multiple digital marketing strategies.
▪ Growing preference among people to travel and go out of their homes after long stay-at-home government orders.
▪ The demand for socially distanced vacationing is expected to grow substantially.
▪ Opportunity to acquire additional parcels of land in order to accommodate a greater number of customers.
▪ Develop an expansive online presence so that reservations can be made months in advance via a proprietary website.
▪ Opportunity to get the RV park registered with third-party booking platforms to achieve 100% occupancy.
▪ Growth in the sale of recreational vehicles in the past year demonstrates the potential increase in demand for RV parks.
THREATS
▪ Already established players in the campground and RV parks industry in the United States.
▪ Changes in regulations may impact business performance in the future.
▪ Expected economic slowdown postpandemic.
MARKETING STRATEGY
A list of marketing strategies to be followed by the company to attract people looking for RV park facilities to spend their vacations and leisure time with their loved ones
MARKET ANALYSIS – MARKETING STRATEGIES
WEBSITE
EMAIL MARKETING
PARTICIPATE IN LOCAL EVENTS
The website has been the first business card for a while and continues to serve its purpose valiantly, even in the eye of the storm mobile apps. The company will develop an interactive and user-friendly website listing the basic information regarding the area of the RV park, amenities at the location, historic and camping locations to visit nearby, terms & conditions concerning pets, rules to be followed, and links to social media pages to inform the customers regarding upcoming activities & programs, discount offers, and additional amenities to be constructed. The website will provide additional information, such as items to bring and items to be stocked in the RV. This will help simplify the packing process for the customer. The company will engage its clients through its website and give them more reasons to stay connected with the business. The regularly updated website content and features will keep the company at the top of search engine results.
Email marketing is another vital strategy to effectively market a business. According to Statista, 49% of clients like to receive weekly promotional emails from companies. The company will collect the names and addresses of prospective customers at every opportunity through online and offline channels. It will create monthly newsletters, including various sections that will highlight the upcoming specials, the campground, discount offers on special occasions, and other information regarding the latest updates in the industry, and exciting offers that will be communicated to existing and potential clients by their email. In the follow-up email, customers will be encouraged to post detailed reviews of their experience at different sites and events.
XXXX RV Resort will gain visibility by demonstrating its dedication to the local community. The company will join one or more local community groups to spread the word about the RV park facility and make it appear more credible. Participation in these groups will create a brand presence in the market. The company will sponsor charity events in the target area, set up a booth at area festivals, and contact local media to get its RV park facility known. This can be an effective way to expand the local presence and stay “top of mind” for locals and residents that may be planning a staycation or looking for area campgrounds for a short weekend retreat.
PARTNER WITH RV DEALERSHIPS AND OTHER BUSINESSES
Co-marketing is one of the most effective ways to gain more exposure in the local area and reach the target market. A person purchasing an RV will also need to know about the destinations to explore. Considering the scope, XXXX RV Resort will collaborate with RV sellers in Oregon and place brochures at their dealerships or showrooms, incorporate information on the dealership’s website, and design email newsletters that can be forwarded by the dealership to their customers. The company will also get pamphlets printed of things to do in the area and distribute the same to the local businesses and dealerships to gain visibility. The resort will also allow these businesses or dealerships to advertise their businesses through flyers to be posted at the RV park.
MARKET ANALYSIS – MARKETING STRATEGIES
SOCIAL MEDIA
More than one billion people are active on Facebook. According to Statista, the average internet user spends 2 hours and 23 minutes on social media every day. Although this varies per country, this presents an unmissable opportunity for businesses. Considering the usage statistics, the company will use different social media networks like Facebook, LinkedIn, Twitter, Instagram, and other groups to reach out to its potential clients. These social media channels will be used to get closer to the potential clients, build a community, and share information regarding the latest discount offers. Customers will be encouraged to post positive reviews and photos of their experience on social media, as 90% of customers say their buying decisions are influenced by online reviews. Tips, techniques, and interesting stories about their camping experiences will be posted regularly to engage customers. In addition, references to XXXX RV Resort on social media will be carefully monitored and addressed in a timely manner, especially if negative comments are posted. This will show other followers that if there are issues, XXXX RV Resort will acknowledge them and work to improve their services if applicable. The detailed strategy to market through social media channels is as follows:
Facebook: It is one of the largest networks in the world, with over 2.4 billion users worldwide. The number of active Facebook users in the United States is estimated to be 223 million. XXXX RV Resort’s Facebook page will serve as a second website. The company will populate its Facebook page with the photos, videos, and reviews/testimonials put together independently by visitors or content creators/influencers/online traffic experts/design staff. It will post relevant daily content on its Facebook page, including photos and videos of people enjoying adventures or camping at its location, offers on special occasions, and contests encouraging customers to participate and earn discount coupons. The company will ensure that it complies with current trends in the social media industry by including and utilizing new features such as “Live Video” and “Status Update” to advertise its RV park facility and its services.
Instagram: Instagram is a visual platform, which makes it the ideal solution for campgrounds and RV park businesses. It is one of the leading social media platforms, with 15 times more engagement than Facebook. XXXX RV Resort will post once per day to the feed section (a mix of images and videos) using ‘Best RV parks’, ‘camping and adventure spots near me’, and ‘top RV facilities with best amenities near me’ hashtags that will increase the page following. The company will reply to every customer comment and direct message as quickly as possible.
LinkedIn: The LinkedIn audience wants a deeper understanding of the campground and RV park businesses, and this drives the appetite for many different types of content. The company will display complete information on its LinkedIn page and use its brand colors to highlight the relevant information to engage travelers and campers.
Twitter: As of 2021, Twitter had approximately 73.2 million users in the United States. The company will share information regarding the addition of new services or amenities and share the experiences of visitors and continue growing its network.
YouTube: The company will create its own YouTube channel to demonstrate the founder’s and their team’s knowledge to build credibility with its target clients. The company will upload videos of people enjoying its facility and share the stories created by influencers to encourage people to visit the facility.
MARKET ANALYSIS – MARKETING STRATEGIES
SEO
Google is one of the most influential channels when it comes to helping campers and travelers find the best place to spend their leisure time and holidays with their family or friends or relatives. Search engine optimization (SEO) involves optimizing website pages to rank higher in search results for specific keywords and phrases. People finding local RV parks are most likely to use search engines. The company will develop a well-crafted SEO strategy to drive more traffic to its website, as it will push the platform to the top of search engine rankings. It will develop appropriate keywords, including ‘top RV park facilities near Grants Pass’, ‘RV parks with great amenities’, ‘RV parks allowing pets near me’, ‘camping facilities near me’, etc., to rank its platform higher in search engine results, enabling it to drive more traffic.
LOCAL AND ONLINE MEDIA
The sales and marketing staff at the resort will write a series of articles about things to do in the area, the benefits of camping, and other lifestyle topics for local magazines and newspapers that will allow them to include the RV park’s contact information within the article. Additionally, the staff will reach out to the local bloggers or online publications to do a write-up about the XXXX RV Resort. This will help the resort to gain some local exposure and encourage readers to contact staff for more information.
CONTENT MARKETING
GOOD SAM CLUB
Capturing the attention of readers and encouraging them to take action is one of the most effective ways of finding new clients online. The company will create a blog section on its website and write relevant content to engage more customers. XXXX RV Resort will blog about all activities in the Grants Pass area to connect with potential customers. This will be a great way for the company to create more exposure. In addition, the blog will include tips to make camping smoother and testimonials from customers. It will also contact informative websites that accept guest posts and regularly publish articles with them to expand its market reach and acquire valuable backlinks. Posting high-quality and unique blogs will improve the search engine rankings and boost the company’s online reputation, helping to ensure that more people see and visit the RV park facility.
The Good Sam Club is the most popular RV membership in the United States, with more than two million current members and more than 2,400 eligible properties nationwide. It provides a 10% discount at all of its partner campgrounds and RV parks and also offers additional benefits such as a 15% discount on propane, an online trip planner, discounts on MotorHome or Trailer Life magazine subscriptions, virtual mailbox service, etc. These benefits attract campers around the nation to book their RV spaces through its website. Considering the wide coverage and network of Good Sam, XXXX RV Resort will get its RV park registered at its web portal to generate valuable leads. In addition to Good Sam Club, the founder will also make efforts to register the resort on other third-party platforms named The Happy Camper Club, Passport America, Escapees RV Club, etc.
MARKET ANALYSIS – MARKETING STRATEGIES
ATTEND TRADE SHOWS AND TRAVEL EVENTS
The company will set up a booth at RV trade shows, travel shows, and lifestyle events in bigger cities near the Grants Pass area. The staff will collect contact information of booth visitors to build a mailing database at these events; meet RV dealership owners and other industry professionals; and also promote the RV resort with brochures and flyers. At a later stage, the company will also develop camping reservation software, so that it can promote its online booking abilities and encourage mobile bookings onsite.
RETARGETING
Retargeting is the practice of sending targeted ads to specific people who have already interacted with the website or any other digital channel of the company. More than 90% of web traffic does not act on their first website visit. Retargeting will allow the company to encourage interested campers or travelers to visit the campsite to enjoy the camping and other activities. The retargeting ads will recapture the traffic by showing ultratargeted ads to people who have already visited or performed a specific action on the website, or other digital channels.
LOCAL ONLINE DIRECTORIES
REFERRALS
To make it easy for people looking for a campsite in the area to find XXXX RV Resort facility easily via online search, the founder will get the facility listed in online directories like Google, Bing, and Abaco (formerly Yahoo! Small Business). With Google, the business name will show up on the first page or first few pages of Google Search results and on Google Maps free of charge. Some of the most widely-used and visible directories that can be used to get listed include Google Places, Bing, Abaco Small Business, and Superpages. Submitting and getting listed on these directories is free and the facility shows up in the directory within a few hours of submission.
Having a referral policy will be one of the most important marketing tactics. XXXX RV resort understands that the best promotion comes from satisfied customers. There will be a tab on the website labeled “referrals” which will automatically link to Facebook, Twitter, and email. This will send a coupon to whomever the customer chooses. If a new customer to the business is referred by a former client, the former client will receive a discount coupon towards their next rental. This strategy will increase effectiveness after the business has already been established. Moreover, when an existing customer refers someone from his/her network, the company will not have to go through the expensive lead generation process, which will ultimately save the biggest part of the marketing cost.
MARKET ANALYSIS – MARKETING MIX
PRICE
XXXX RV Resort will follow a value for money pricing strategy offering amenities at a competitive price as compared to other players operating in the campground and RV parks industry in the target area. The prices for different amenities have been fixed as follows:
▪ Monthly rent for full-time residents: $750+utilities
▪ Daily rent for transient RVs: $55
▪ Monthly rent for storage units: $120
▪ Rest of the services, including studio apartment, laundry, vending machines, café, retail sales, cottages, etc. will be billed on a usage basis per visitor.
PROMOTION
XXXX RV Resort will advertise through multiple online and offline marketing channels, including website, brochures, social media, and local media sources to spread the word about the amenities and facilities available at the park. Additionally, the company will collaborate with travel bloggers and influencers to share their experiences about their visit to the resort. This will allow the resort to convert their followers into valuable leads. The resort will also get itself registered with Good Sam club and offer discounts to people booking through this channel and encourage them to leave their reviews on the website, which will generate referral business.
PRODUCT
The founder XXXX has already been running a successful RV park at Grants Pass, Oregon. Inspired by the success of this park with a 100% occupancy rate, the founder has decided to develop a second RV park in Grants Pass, which will be named XXXX RV Resort. The facility will be constructed over an area of 13.03 acres of land with historical buildings and natural amenities. The construction of the facility will be started in March 2022 and the estimated completion date is 1st September 2022. The facility will have both full-time and transient RV rental options targeting both long-term and short-term renters. The aim of the founder is to create a memorable experience for the guests visiting the facility.
PLACE
XXXX RV Resort will be located at Grants Pass, Oregon. Having studied the demographics of this location, the place is considered as an ideal location to set up an RV park. There are several adventure & leisure spots and historic places around the area, which makes it a fun-filled place to visit and enjoy a vacation. People in Grants Pass invest in and care about their community. They are always looking for ways to improve and add character to the already distinguished town, which attracts tourists from around the nation. The county also hosts the state’s longest-running outdoor growers and crafters markets. The initial target location of the company will be Oregon and California. After having established a brand name in the home market, the company will target people from other states in the United States through digital marketing.
MANAGEMENT SUMMARY
MANAGEMENT SUMMARY – FOUNDER’S DETAILS
XXXX
Founder and Managing Director
XXXX has designed and built a large log home, located on the Rogue River in Grants Pass, Oregon, where he entertains his family and friends.
POSITION:
EXPERIENCE:
PREVIOUS PROPERTY OWNERSHIP:
DEVELOPMENT OF NEW PROPERTY AS RV PARK:
SOURCES AND USAGE
The founder will invest funds in the form of equity and will satisfy the additional funding requirements from conventional and SBA loans
SOURCES AND USAGE OF FUNDS
SOURCES AND USAGE OF FUNDS
FIXED ASSETS
FINANCIAL PLAN
These are our financial projections for the first five years of operations, depending upon market conditions.
FINANCIAL PLAN – INCOME STATEMENT
FINANCIAL PLAN – INCOME STATEMENT
FINANCIAL PLAN – INCOME STATEMENT
FINANCIAL PLAN – CASH FLOW STATEMENT
FINANCIAL PLAN – CASH FLOW STATEMENT
FINANCIAL PLAN – BALANCE SHEET
FINANCIAL PLAN – BALANCE SHEET
$3,500,000
FINANCIAL CHARTS
STRUCTURE OF EXPENSES
$2,000,000 $2,500,000 $3,000,000
$1,500,000
Revenue Item #1: Full-Time Residents
A maximum of 40 spaces of the total 120 available, or approximately 33% available for rent will be dedicated to full-time users, made up of Motorhomes and 5th Wheel Travel Trailers.
Grants Pass has a large housing shortage and allowing 40 spaces to be used by full-time residents is a benefit to the City as well as providing a guaranteed annual source of income.
The rents will range between $700 and $800 monthly plus electricity. These monthly rates have been determined by comparing the rates charged by similar RV Parks in Southern Oregon. Jacks Landing RV Park, located directly across the freeway is charging $700 per month and is 100% full year round
Revenue Item #2: Transient Rentals
80 spaces of the total 120 available for rent will be dedicated to the tourist or transient users. The spaces are approximately 34’ wide and between 50’ and 60’ in length. There are approximately 45 drive-through spaces and 75 back in spaces available. Each space will be equipped with a picnic table, concrete patio, sewer connection, 20/30/50 amp electricity, water and lighting.
The rent will range between $55 and $60 daily including electricity. These daily rates are a reflection of comparing the rates charged by similar RV Parks in Southern Oregon. XXXX RV Resort will have one of the largest recreation areas available to its residents and transient users as compared to its competition. Most transient RVers travel in Oregon, beginning in April and continue through November.
Revenue Item #3: Studio Apartment
This large 1 bedroom, 1 bathroom fully furnished Studio Apartment will be rented out during the peak months beginning in April and running through the end of November. Located adjacent to the Café and Outdoor Swimming Pool area, it will provide an ideal place for guests that are visiting a resident or transient user of XXXX RV Resort. It will also be available for a tourist visiting Grants Pass and the surrounding areas that would like to take advantages of the many recreational amenities available at XXXX RV Resort.
The rent will be $120 daily including electricity. The proforma is based upon a total of 100 days annually or approximately 55% occupancy during peak season. A deposit will be required.
Revenue Item #4: Cottage
This is a free standing completely remodeled cottage built originally in 1900. This large 1 bedroom, 1 bathroom 2 story cottage will be rented out during the peak months beginning in April and running through the end of November. Located directly in front of the swimming pool area and a short path to both the indoor and outdoor patios of the main recreation building, it will provide the user a unique turn of the century experience.
The cottage has both heating and air conditioning and will rent for $180 daily including electricity. The proforma is based upon a total of 100 days annually or approximately 55% occupancy during peak season. A deposit will be required.
Revenue Item #5: Main House
The main floor of this beautiful 3,800 square foot 1900 farm styled home will be the central recreation building with its ornate demonstration kitchen, billard room, dining area, game rooms, covered and outdoor patios, 2 bathrooms and many other unusual and ornate details.
The second floor features 2 bedrooms, living room, kitchen and one of the most elaborate bathrooms from the turn of the century. Hardwood floors, coffered ceiling, wainscotting, customed tile work, window seats and other features will provide a unique experience for its guests.
This beautiful fully furnished unit will be available during the peak season for a daily rate of $240. The proforma is based upon a total of 100 days annually or approximately 55% occupancy during peak season. A deposit will be required.
Revenue Item #6: Café and Other Retail Sales
This beautiful building has a full kitchen with indoor seating, as well as an outside patio area and a covered deck area that can seat up to 40 guests. The RV resort will be serving pre-package items, including breakfast bagels, ice cream, snacks of all kinds and both hot and cold beverages.
There will also be a variety of retail items, appealing to both the full-time resident and the transient RVer, including paper goods, toiletries and other items.
The covered deck area overlooks the entire Park and will provide a relaxed environment to enjoy a conversation with other guests.
The price of the items provided will be sold with a 100% markup.
Revenue Item #7: Laundry Facilities
There will be 4 Laundry Facilities located throughout the Park. Each building will have 3 washers, 3 dryers, a laundry sink, counter space and seating areas. These facilities are located adjacent to the 4 restroom building that have 3 private restrooms for a total of 12 restrooms in the park area.
These commercial machines will be provided with the most up-to-date operating systems that will accept cash and credit cards. They will be leased with a full maintenance and replacement contract.
The founder is currently operating another RV Park in the area and has adjusted the proposed income based upon his current and verified revenues.
Revenue Item #8: Vending Machines
There will be 2 vending machines located in each of the Laundry Facilities located throughout the Park for a total of 8 machines. In addition, there will be additional machines located in the Café.
These vending machines will be state-of-the-art and include snacks, sodas and frozen foods. They will be serviced by a full vending program.
I have operated several quick service restaurants and have a great deal of experience with the revenue possibilities and have used this experience to generate proposed cash flow and profits.
Revenue Item #9: Self-Storage Units
The self-storage units that have been designed are not depicted by the attached picture. There will be 48-10’ x 10’ units available for the entire Park and will have similar architectural detailing as the existing buildings.
These units will provide an opportunity for the RVer to rent a storage space at the Park, rather than having to go to the nearest Self-Storage Facility in town. They would be used for many large items that he or she might have stored inside their RV. These items would include kayaks, rafts, bicycles, barbecues, chairs and other large items.
Self-Storage units in RV Parks have become widely used and produce a premium rental rate. The daily rate would be $6 and the monthly rate would be $117. These are the same rates as the newest facility in Grants Pass.
Revenue Item #10: Massage
Located next to the Café, this 2 suite massage facility will be supervised by Sara Walendy, the owner and operator of Sundance Healing Arts Center in Grants Pass.
With upwards of 175 individual guests staying at XXXX RV Resort at any given time, the potential of offering a massage will be a welcome experience for many of its guests and full-time residents.
Sara will provide the labor and the Park will work on a percentage of all proceeds taken in from the operation. The rates will be determined by the services provided and the proforma is a result of conversations between the founder and Sara.
FINANCIAL PLAN - ASSUMPTIONS
The XXXX RV Park Projected Profits & Loss Statement is a result of several factors learned from other Parks in the area and from operating a very successful RV Park, called Whitehorse RV Park, located in the same general area. As a result of the large housing shortage in Grants Pass and the fact that I have reached 100% occupancy with a waiting list, I am confident that I will begin filling the 40 spaces, which account for approximately 33% of the available sites, immediately upon receiving a Condition of Occupancy from the City of Grants Pass. This immediate occupancy is represented in the Profit & Loss Statement.
The remaining 80 spaces or approximately 66% of the total available sites will be rented on a daily or weekly basis during the peak season running April through November. The Profits & Loss Statement reflects this assumption and accounts for approximately 55% occupancy during the peak season. This is a very conservative occupancy and will increase in future years.
The revenues from the 3 seasonal rentals have also been determined using an occupancy rate of approximately 55% or a total of approximately 100 days per season.
I have operated a café for 4 years in the Whitehorse Park and have used my experience and revenue history to generate the proposed sales and expenses associated with operating a café, laundry room and vending machines.
Having designed, built and operated more than 500,000 square feet of self- storage facilities, I am confident in providing 48 storage units or a total of 4,800 square feet exclusively for the use of the Park’s tenants.
An explanation of the services, rental rates and proposed sales of the 10 revenue items that are projected in the Profit & Loss Statement are outlined in the appendix attached to the Business Plan.
FINANCIAL PLAN - MANAGEMENT & STAFF REQUIREMENTS
XXXX RV Resort will be managed and staffed by 6 highly motivated team members, who’s main objective will be overall customer satisfaction.
OWNER/XXXX
▪ Responsible to oversee the operations of the Park and hire all team members.
▪ Review all policies and procedures.
▪ Attend regular team meetings and oversee marketing strategies.
▪ Join the local media forums & groups to encourage more and more people to visit the Park.
ASSISTANT MANAGER
▪ Fill in for the General Manager during vacations and sick days.
▪ Assist General Manager with any duties that are assigned.
▪ Responsible for shows, promotions and future events within the resort and local area.
▪ Stock, order and receive supplies for RV Park facilities, including seasonal rentals.
▪ Responsible for social media and other online & offline marketing strategies.
COMPENSATION:
▪ $2,500 monthly + free rent & utilities = $3,350 monthly/$40,200 annually
▪ Payroll expenses & benefits @ 25% of base pay
GENERAL MANAGER
▪ Responsible for supervision of all RV team members and day-to-day operations.
▪ Ensure that all RV Park team members adhere to the policies and procedures.
▪ Oversee check-in/check-out and collect payments in compliance with cash handling, credit card processing and accounting policies and procedures.
▪ Ensure that the arrivals checklist is updated daily and that inconsistencies are investigated immediately.
▪ Pre-register, block reservations, handle group bookings and, as appropriate, take same day and future reservations.
▪ Complete follow-up through no-show, late cancellation charges and cancel site reservations.
▪ Welcome all guests in a friendly manner and assist with any questions or concerns during their stay at the RV Park. Help to ensure that all guests have an enjoyable experience while adhering to the park rules.
▪ Provide and maintain a positive and safe work environment.
▪ Provide and collect daily paperwork and reports as required.
▪ Perform regular inspections of property, repair and report maintenance of property and equipment as necessary. Request assistance from proper personnel as needed.
▪ Attend safety and operational meetings as scheduled and conduct staff meetings as needed.
▪ Ensure staff is on time and at work when scheduled and in proper uniforms, if required.
COMPENSATION:
▪ $3,500 monthly + free rent & utilities = $4,350 monthly/$52,200 annually
▪ Payroll expenses & benefits @ 25% of base pay
MAINTENANCE
AND LANDSCAPE MANAGER
▪ Maintain all landscaping throughout the Park, including lawn, plants and trees.
▪ Perform regular inspections of property and make necessary repairs as required.
▪ Responsible for the cleanliness and proper repair of all recreation buildings, both inside and out.
COMPENSATION:
▪ $2,500 monthly + free rent & utilities = $3,350 monthly/$40,200 annually
▪ Payroll expenses & benefits @ 25% of base pay
MAINTENANCE AND LANDSCAPE ASSISTANT MANAGER
▪ Perform all duties as assigned by the manager.
▪ Responsible for the operations, supplies and cleanliness of all restrooms, laundry rooms and seasonal rentals.
COMPENSATION:
▪ $1,500 monthly + free rent & utilities = $2,350 monthly/$28,200 annually
▪ Payroll expenses & benefits @ 25% of base pay
TOTAL PAYROLL
The total payroll for the 6 employees will be approximately $271,200. This is made up of the following:
CAFÉ MANAGER
▪ Responsible for providing RVers with excellent service.
▪ Serve drinks, snacks and other retail items using state-of-the-art accounting software.
▪ Keep track of inventory and report status to the Assistant Manager.
▪ Assist massage appointment.
▪ Responsible for cleanliness as needed on a daily basis, including kitchen, patio, deck and restroom facility.
COMPENSATION:
▪ $2,500 monthly + free rent & utilities = $3,350 monthly/$40,200 annually
▪ Payroll expenses & benefits @ 25% of base pay
ASSISTANT CAFÉ MANAGER
▪ Provide assistance to Café Manager as requested.
COMPENSATION:
▪ $1,500 monthly + free rent & utilities = $2,350 monthly/$28,200 annually
▪ Payroll expenses & benefits @ 25% of base pay
▪ $168,000 base pay
▪ $61,200 free rent & utilities
▪ $42,000 payroll expenses & benefits