|If investing in or owning a campground business has ever crossed your mind, you must know there are many aspects to consider. By understanding the costs of starting and running the business, you can estimate the returns margin.|
Data and statistics prove that campground franchising is part of a profitable industry. When you run your campground business correctly, you stand to get your slice of the commercial pie. So, how profitable is buying a campground franchise? The short answer: it is very profitable if you know all the things to avoid and what to focus on.
The Campground Business Industry
Evaluating an industry is vital when investing. In 2019, the campground and RV industry profits increased to $7 billion, creating a 2.7% growth curve between 2014 and 2019. Additionally, the number of campgrounds rose to 14,500. These numbers are anticipated to keep growing, given the economic growth in the U.S and Canada.
Subsequently, this industry was among the few to see growth during the pandemic in 2020 by rising to an outstanding $8.73 billion. This data proves that the industry is here to stay, without any major pitfalls in the near future.
The Key Considerations
Buying a campground business and reaping returns depends on these main factors:
Location of the campground franchise
Your experience in the industry and market
Whether to buy a preexisting campground or buy land and build
The campground’s amenities and offerings
Quality of staff and managers
You can decide by looking for park campgrounds for sale, buying land and turning it into camping grounds, invest in a campground franchise, or buy for sale by owner campsite business. Every choice has its hurdles and advantages, but all require commitment and smart business decisions.
Getting a suitable location is also crucial. Jellystone Park ™ campgrounds are located in highly commercial areas. Even with seasonal changes, your franchise will still stay afloat. Both the local and cross-country markets can reach your camping grounds.
Choosing to build from scratch or buying a preexisting camping site entirely depends on your liking and financial capability. Starting from square one will probably cost you more. The reason being, it will take a while for your target market to know of your presence. Furthermore, extra costs come from starting with just a piece of land and working your way up.
What the campground offers to guests is really important. This can include, among others, number of campsites for tents and RVs, size of campsites, water hookups, electric hookup capabilities, shower facilities or bathrooms with hot running water, WIFI, propane refills, various amenities such as playgrounds, etc.
How Much Do Owners and Investors Make?
Your campground business can have an ROI of 10% to 20% or 25% to 30% as per the factors mentioned above. Residential real estate, for instance, will yield an ROI of 10% and stocks 7%. Therefore, it is wiser to invest in property for a campground business as the market benefits park owners more than other investors in the industry.
To make your business profitable, take advantage of the peak seasons. In North America, the campground franchise can make 80% of its annual returns over only three months. This period is usually between June throughout August.
The campground business is very lucrative, but only if you do it right. Owning a campground or RV park is not for everyone. However, if you have an eye for real estate investments, contact Leisure Systems Inc. today and check the list of available campgrounds for sale.
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Ray Aljets – Sioux Falls, SDThree generations of my family have operated our Jellystone Park location and I can say with the utmost confidence that the Jellystone Park system has had a dramatic impact on our bottom line. Opportunities to increase guest satisfaction and revenue are everywhere and the creativity of those in the Jellystone Park system keep me on the leading edge of both the family … Read more
Sean Vidrine – owner of four Jellystone Park locationsWe have seen 15% growth year over year. Our retail sales are up 50% and our occupancy is up as well. Seeing our guests’ faces light up when the characters are out is priceless.
Bob & Beth Ryan – Mannford, OKOur family has been a franchisee for over 30 years. The support that both the franchisor and fellow franchisees offer goes above and beyond expectations.
Jessica & Mickey Spak – Chautauqua County, NYI love the support from the franchise. I would tell any prospect looking at converting or building a Jellystone Park, that it’s the single best business decision you can make.
Susan Novotny – South Haven, MIWithin 5 years, we have more than tripled our revenue. We have no regrets becoming a franchisee of Jellystone Park!
Daren & Lorraine Carlson – Hocking Hills, OH
The Jellystone Park brand has made a huge difference in our business. If we had 50 more sites and more cabins, they’d be filled every weekend.
Theresa Isaacson – Caledonia, WI
We’re going to be entering our 13th season, and I sure would hate to own a property without being Yogi branded. I don’t think we’ve ever had a down year. We just continue to grow. The reason we really like Jellystone Parks is because of the support behind us. With other parks in the system, we have 75+ sources of question-and-answer type people to go to. The suppo… Read more