With the popularity of campground ownership increasing over the last 3 years there has been an emergence of campground management companies that handle everything from staffing to paperwork. This is similar to what we saw when AirBnB soared in popularity. Leasing companies, like TurnKey Rentals, were founded to help people lease out their properties with zero hassle. While this might seem to be a good thing, there are pros and cons to using management groups. For instance, not only is there a yearly fee but also an average charge of up to 30% of all revenue generated while using their services. The time and headache saved need to be carefully weighed against the percentage of revenue you are giving to these companies. Is a campground management company right for your park and if not, what are some ways to limit your headache without giving up a huge percentage of revenue?
Cost:
The average yearly cost of a campground management company is between $15,000 - $50,000 PLUS 15-30% of revenue generated from the campground. Depending on your margins, this alone could take you out of the running, especially if your park is smaller (as this figure does not include employee pay, property taxes, and other overhead costs).
However, if you have larger margins or a 100+ site property, It might make more sense. They do include all software needed: marketing, website management, employee training and hiring, and even retail store optimization. For comparison, below we added up what handling everything in-house would total while using software built to save campground owners time and money.
Website management - Most parks choose to use website builders like Squarespace or Wix, which are simple to manage and set up, even for those with a little technical background. On top of choosing a website builder, you will also need to purchase a domain, which has yearly costs associated with it.
Total Website Builder Cost: $250/yr
Total Domain Cost: $25- $120/yr
Reservation and Management Software - Online reservations for RV Parks/Campgrounds are a must in this day and age and you will need the software. Luckily, sites like Bonfire make it easy. People are used to having everything at their fingertips. With online booking software, like Bonfire, your guests will have all the information they need to make an intelligent decision about their camping accommodations. Additionally, Bonfire also allows you to keep all sales, even on-premises sales, in one place. This makes it simple to hand everything over to your accountant for taxes.
Reservation and Management Software: $2,400/yr
Percentage of sales: 2.9%
Payroll - You will need to have a system for payroll. Many parks use Quickbooks or Gusto to handle this. With either, you can set up things like auto-pay, but with Gusto, you can easily pay contractors and they handle all W-9s, compliance, and even PTO. Gusto also handles taxes at the end of the year so you don’t have to worry about it, saving you time.
Gusto Payroll: $1,200/yr (average for a team of 10)
Marketing - Ideally, an on-site employee would handle posting to social media and with a little research, you could handle the bulk of online advertising. We do recommend allocating at least $500/mo to marketing. Click here to read our in-depth how-to on Facebook/Instagram advertising and email marketing.
Total Marketing Costs Per Year: $6,000
All in with a campground management company: $10,000 - $50,000/yr + 15-30% of all revenue.
Doing it on your own with time-saving software: $10,000 + 2.9% of sales from online reservations.
Pros & Cons:
Pros: They handle everything for you. This is the biggest advantage of using a campground management company. From staffing to compliance, you just have to sit back and collect passive income.
If you are thinking about retirement and want to have a completely hands-off experience, this could be the way to go. Most campground management companies offer over time buyouts, or even investment to take majority shares to help those looking to retire, a great way to do so.
Additionally, if you are wanting to expand your campground from a smaller park to a full-blown resort but are unsure of how to do it, then a campground management company might be the right way to go. Most of these campground management companies are backed by investment firms. Most campground management companies specialize in resort management and have resources for investment and expansion planning. So if you are looking to take your park to the next level, bringing in a campground management company to help with current day-to-day operations and provide a plan and/or investment needed for expansion, might be smarter than going it alone.
Cons: They take a big chunk of your profits. In addition, a hands-off approach has its pitfalls too. Since a lot of these campground management companies are ultimately investment companies, they are there to make as much money as possible. What makes campgrounds so amazing is the mom-and-pop style and care for customers. Putting profits ahead of the customers could lead to your park losing its down-home feel.
Additionally, the hiring process is out of your hands. Many of these companies have go-to employees they bring in to help. While these are usually seasoned employees with great track records, there is something special about hiring locals. Locals can help your guests find things to do in the area, bring the character of the locals, and care about their community, which is a different kind of motivator than money.
In Summary:
Is a campground management company right for your park? The answer is “maybe”. Campground management companies like LLA Hospitality are probably best for those looking to retire as they can come in and run everything while still providing you with passive income. Additionally, if you are looking to rapidly expand your park from a smaller campground to a resort, then these companies can not only equip you with a business plan but also with the financial backing you need.
However, if your campground is small, you are looking to keep the campground in the family, or want to keep your hard-earned profits in your pocket, then managing your park yourself is the way to go. There are services such as Bonfire that make managing your park and taking online reservations simple. Even payroll software like Gusto is a great way to save time while keeping costs low.
Whichever route you choose to go, we are here to help you every step of the way. You can click here to read about the pros and cons of the top software offers for campground management and decide for yourself if Bonfire is right for your campground! We are so sure you will find Bonfire to be the leader in Campground Management Software, we want to let you try it FREE for 30 days. Click here to book a walk-through of our software and start your free trial. Have questions? Send us an email at howdy@letsbonfire.com.
