WHY ONLINE RESERVATIONS ARE IMPORTANT FOR ALL RV PARKS AND CAMPGROUNDS

There were over 160 million online reservations booked in 2017 in the United States. While these were for hotels, let’s take a moment to think about this in terms of RV Parks and campgrounds. 

There are approximately 15,000 RV Parks in the U.S. and approximately 55,000 hotels. If you use the same hotel to RV Park ratio, RV Parks should be booking approx. 4 million online reservations a year. 4 MILLION. Of those who book online, over 45% of people booked their stay 1-5 days in advance and 24% booked a reservation ON THE SAME DAY AS THEIR ARRIVAL DATE. If your primary goal as a campground manager/owner is to fill those sites, those extra couple of reservations booked the day of could mean the difference between profit and loss.

So, this poses the question, how can you capitalize on online and short notice bookings? 

It is easy. Allow people searching for where to stay to book and pay online, even during times when your campground is not open. 

We have heard it time and time again. Park managers and owners wake up and start their day calling back those who left messages after closing to reserve stays only to find out they called another campground and successfully booked. You can combat this easily by adding a URL to an away message allowing those looking to stay at your park to book online. 

We know what you are thinking, “over booking can happen.” Not with reservation management tools, like Bonfire, that allows you to control inventory by automatically updating which sites are full and for how long. Bonfire also provides you with your own online booking page, making it easy for you to point people to the correct URL for simple online reservations and payments.

Don’t know if Bonfire’s simple-to-use and simple-to-learn reservation and campground management tools are right for you? Schedule a call with our Head Honcho and ask any questions you have. 

With or without Bonfire, we hope your park can capitalize on the growing online reservation industry and those looking to book stays at your park. 

How To: Buying a Campground (Overview)

Thinking of getting out of the corporate world or investing your money for the future? We understand. In recent years an increasing number of Americans are seeking respite from the daily grind by retreating to nature. Pastimes such as hiking, camping, and other outdoor activities are on the rise. In fact, each year since 2014, 1 million additional American households have added camping to their yearly retreats. Buying a campground might be a great investment for you and/or your family. However, it does come with risks. If you are in the market or thinking about getting in the market, here are a few tips on how to buy a campground.

1.    The Down-Payment

When purchasing a RV Park or campground, you have to have a hefty down payment of 20-30%. There really are not any good ways around this. Why? Unlike buying a home, you are purchasing a business with 3 parts.

• Recreational Land

• A Business

• A Home

Although they are all joined physically, they are analyzed separately, so, you need a little cash flow. A lot of new owners sell their homes and use the money made to pay for the down-payment. One thing to keep in mind, however, is that park owners will not hold their park while you sell your house. So, it is a bit of a gamble. You can also consider using other assets for down payments as well.

2. Extra Cash

Even after the down-payment, remember you will need to have some cash in the bank for general operating costs, to make improvements and for tools your business needs to get off the ground like Bonfire’s campground reservation management software.

3. Loans

There are several loan options out there besides a loan from banks. You can apply for a SBA (Small Business Administration) loan. If a bank is hesitant to give you a loan, they could require a SBA guarantee. You still HAVE to have the down-payment. The interest rates on these loans are also much higher. Bank loans are your best bet but again, you must have a downpayment of 20-30% upfront in order to qualify.

4. 401K Small Business Financing

This can get a little tricky. The easiest way to use your 401k makes it impossible to become a full time employee of the campground as you have to keep working for the employer your 401k is through until the loan is paid off. The harder way is to apply for ROBS (Roll-Over for Business Startups), but it allows you to work full time for your new campground. For ROBS, first, you have to structure your business as a C-corporation. Then, you have to set up a new retirement plan under the C-corp. At that point, you roll over the funds from your existing retirement plan into the new company’s retirement plan. Finally, your new corporation sells stock to the retirement plan, and the company uses the proceeds from the sale as a source of capital. (One catch: You can’t pay owners’ salaries from these funds.)

There are four main eligibility requirements for a ROBS:

    •      You need an eligible retirement account—such as a 401(k), 403(b), SEP, Keogh, or traditional IRA. Roth accounts are not eligible.

    •      The retirement account must have at least $50,000.

    •      The business owner should be an employee of the business and receive a salary.

    •      You must either have a C-corp or be willing to structure your business as a C-corp.

For more on the above click here.

4. Seller Financing

Some park owners will allow you to pay a downpayment and create an installment plan over a fixed number of years. This is normally a great option for new purchasers and sellers. Many sellers will put stipulations in the agreement not allowing you to expand, cut leases or other things that might change how the park operates. So, depending on how you want to run your park, this may or may not work for you.

5. When To Start Talking to Banks

The best time to start talking to a bank is when you have a contract in hand from the campground. After all, terms and contracted price is what the banks will need to see in order to give you the loan.

6. Next Steps

 After you have a signed contract and a loan agreement, you have approx. 30-60 to do your due diligence on the property and business. Now is when you should investigate the businesses tax records, leases, permits and other assets. The park owner might not be comfortable opening up the books for you prior to a bank signing off. If everything looks good, then the only thing left is to close the deal.

Buying a campground can be a complicated process but the rewards can far outweigh the risks. If you have any questions about the campground purchasing process, please shoot us a email at howdy@letsbonfire.com.

If you want to know more about Bonfire's simple to use campground management software and dedicated online booking pages, please reach out to us at howdy@letsbonfire.com.  When comparing management software, what should you look for when finding the perfect software for your company? In this blog, we dive into choosing the perfect software for your campground based on size, cost, and more. 

Are there other companies who offer similar services? Yes. 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.

How to Run A Successful RV Park or Campground

Owning a campground or RV Park is fun. From hanging outside roasting marshmallow to fishing the day away, it can seem, from a distance, to be nothing but fun. However, it is also hard work. Here are a few tricks and tips we have picked up along the road from not only running our own campgrounds, but also from interacting with hundreds of owners/managers. 

1. Understand the Industry

We will start off the basics for those who are thinking about owning their own campground and RV Park. Make sure you familiarize yourself with the consumer’s point of view. This seems pretty straight forward but many excited new owners forget to do proper research. From staying at a campground as a guest to working one for a few weeks, you need to understand both sides of the isle. 

2. Create A Community

Having celebrations for July 4th and even ice cream socials help create memories for not only long term guests but short term guests as well. Creating a sense of community and even family, creates a atmosphere every one enjoys. One way to foster a sense of community is to offer simple things like hot coffee to people while they checkin or a postcard they can send to someone from your campground. 

3. Learn The Basics

If you are not a little versed in electricity and plumbing, take a class or two. Of course, you can hire someone but that can quickly add up. Knowing some of the basics can save you thousands of dollars and a lot of time. Plus, being able to offer quick solutions to your customers, will only keep them happy. 

4. Cleanliness Is Key

A lot of campground and RV Park customers hear about you through WOM. Therefore, your park needs to have clean facilities. If you do not have clean bathrooms or showers, you will loose customers - it is that simple. 

5. Don’t Make It Hard

Keeping everything as streamlined as possible for easy checkin and checkout can mean the difference between a good and great experience. Checkin is a customers first interaction with you and we are not talking about the day they arrive. Your impression starts when they book. Wether they book online or by phone, making it easy and comfortable is vital. Check out our blog on creating a great first impression HERE and if you do not have a easy to use online booking platform check out Bonfire.

6. Do It Right The Fist Time

If you are going to build, do it right, with the correct permits. What should have just been a $30 permit could end up costing you $300 in fines. If you build it right with the proper paperwork the first time, it will save your money and time down the line. 

7. Marketing For Success

Staying ahead of your competition is key and correct marketing can help. From having a strong Social Media presence to running strategic google ads, it is not impossible to standout from your competition. Click here to download Bonfire’s Free RV Park and Campground Marketing Guide.

8. Adding in Facilities

While marketing can help your campground grow, the addition of facilities such as a playground, a outdoor theatre, and ultimate frisbee courses also make you stand out. Not everything has to cost you money. Lunch and Learn for Campfire Cooking or Guided Hiking Tours can bring in a little extra revenue and a lot of attention. CLICK HERE to read about additional facilities your park could add. https://www.letsbonfire.com/blog/2018/2/13/free-paid-activities-you-could-add-to-your-park

Owning a RV park or campground is hard but rewarding work. We hope these tips help your park or campground have a successful year.