MANY CAMPGROUNDS AND RV RESORTS THAT CATER TO SNOWBIRDS REPORT BUSINESS LEVELS CONSISTENT WITH 2008 FIGURES

Linda Profaizer                                                                      
National Assn of RV Parks & Campgrounds
(303) 681-0401
lprofaizer@arvc.org

 

The continuing allure of private parks is good news for many Sunbelt cities, whose economies thrive on the annual influx of winter visitors, though some seniors have cut back on meals out and other expenses.

 

With a volatile stock market and a daily barrage of negative economic reports, one might expect snowbirds to forego their annual trek south to private campgrounds and RV resorts across the Sunbelt.

 

But while revenue and occupancy figures are down at many parks compared to last year’s figures, many parks that cater to snowbirds are reporting business levels consistent with 2008 figures.
           

“Many of the private campgrounds and RV resorts in Sunbelt states are reporting higher revenue and occupancy levels this winter than they previously expected based on advance reservations,” said Linda Profaizer, president and CEO of the National Association of RV Parks and Campgrounds.
           

“This is good news,” she said, “not only for Sunbelt parks, but for the communities where campgrounds and RV resorts are located, since their guests often patronize restaurants, grocery stores, gas stations and other local businesses in these communities.”
           

Indeed, a national survey commissioned by the association in 2005 found that the RV and camping enthusiasts typically spend about $50 a day on meals out and other expenses unrelated to the cost of renting an RV site.
           

But while the economic impact of winter visitors in Sunbelt communities continues to be significant, the number of retirees spending the winter in private campgrounds and RV resorts varies, with no single geographic region of the Sunbelt enjoying any particular advantage over the other.
           

Chicago-based Equity Lifestyle Properties (ELS), the nation’s largest owner and operator of RV resorts that cater to retirees, owns and operates 66 Sunbelt parks, including 33 in Florida, 15 in Texas and 18 in Arizona.
           

And even though even though advance bookings for RV sites in January were initially down, ELS’s system wide revenue during the first 25 days of January ended up being consistent with last year’s figures, said Thomas Heneghan, ELS’s CEO. However, individual ELS park revenues varied throughout the Sunbelt.
           

“We have some parks that are down 15 percent, while others are up 10 percent,” Heneghan said, adding that the company’s parks in Arizona, the Rio Grande Valley of Texas and Florida all have a “mixed bag” of occupancy reports.
           

In Orlando, Fla., for example, where ELS operates two parks with 1,056 sites, revenues were down 10 percent during the first 25 days of January compared to a year earlier, while its 647-site Rambler’s Rest RV Resort in Venice and its 300-site Sunshine Travel RV Resort in Vero Beach were up 3 percent and 7 percent, respectively.
           

ELS is seeing variable revenue figures in other states as well. In Texas, the company’s 1,500-site Fun-N-Sun RV Resort in San Benito saw a 2 percent decline in revenues in January, while it’s 531-site Tropic Winds Resort and its 301-site Lakewood RV Resort, both in Harlingen, saw revenue gains of 6 and 8 percent, respectively.
           

And while some ELS parks in Arizona have seen their revenues slip, others have exceeded last year’s revenue figures, including the 1,928-site Viewpoint RV Resort in Mesa, the 767-site Fiesta Grande RV Resort in Casa Grande, and the 337-site Araby Acres RV Resort in Yuma, whose occupancies increased 2, 4 and 8 percent over January 2008 figures.
           

“We are seeing a much shorter booking window,” Heneghan said, but he said retirees are still willing to travel and enjoy the RV lifestyle.
           

Kampgrounds of America Inc. (KOA), the nation’s largest campground franchise company with 460 private parks across North America, is seeing similar trends. During the first 26 days of January, KOA’s system wide revenues were down by 0.2 percent, according to Jeff Sutherland, KOA’s vice president of franchise operations. “That’s as close to flat as you’re going to get,” he said.
           

And while current KOA park revenues and occupancies vary across the Sunbelt, Sutherland said he is cautiously optimistic about the current winter season, with parks in Texas, Louisiana and the Southwestern U.S. reporting slight increases in business levels.


Operators of independent campgrounds and RV resorts in Florida, Texas, Arizona and California also report strong occupancies after experiencing a slow start to the winter season. “Our phones have been ringing off the hook,” said Lynda Phelps, owner of the 350-site Upriver RV Resort in Fort Myers, Fla. “We started the season slightly behind. However, we have recently increased and have exceeded expectations. We are right on target.”


Kay Randolph, sales advisor to Sun-N-Fun RV Resort in Sarasota, Fla., which has about 1,100 park models and 400 RV sites, said her park has been very busy. “We’ll be standing room only by February,” she said. “Our business has been very good.”


Dunedin RV Resort, a 233-site park north of Tampa, is also reporting occupancies consistent with last year’s figures. “February and March we’re booked solid and April is looking good,” said Dick Whalen, the park’s owner.
           

Independent parks in Texas are also experiencing high occupancies.


“There are a lot of parks in the Rio Grande Valley that are completely full,” said Lois Hartman, office manager of the 378-site Oleander Acres RV Park in Mission. “I think a lot of them are doing quite well.”


Oleander Acres, for its part,is also enjoying strong business, Hartman said. “It seems like we have a few more people than we did last year,” she said.

 

“We are full again this year,” said Karen Pike, manager of Victoria Palms Resort in Donna, Texas, which has 850 RV sites, 250 mobile home sites and a hotel.

 

“We’re booked up through at least April 1st.”

 

The strong snowbird business isn’t limited to parks in the Rio Grande Valley or South Texas.


“We’re having extremely strong Winter Texan activity,” said Gwen Craig, who owns two private parks in the Woodlands area north of Houston, including the 115-site Rayford Crossing RV Resort in Spring and the 45-site Timber Ridge RV Village in Magnolia. “I think most parks in this area have seen the same thing as well,” she said.

 

Several independent parks in California and Arizona also say their occupancy levels are consistent with last year’s figures, though some parks have also seen declines.

 

Occupancies at Rincon Country RV Resorts, which has two parks in Tucson, Ariz. with 1,600 sites, including 500 sites for traveling RV enthusiasts, are down by about 30 percent, according to park owner George O’Leary, who attributes the decline to the economy.


Jim Beach, general manager of the 1,800-site Mesa Spirit RV Resort in Mesa, Ariz., said his occupancies are down about 5 percent. “Considering how (occupancies) could be (in this economy), it’s not too bad at all,” he said.

 

Other independent park operators say their occupancies are consistent with last winter’s figures, although many got off to a slower start this season.

 

“We’re pretty busy,” said Joanna Clay, office manager for the 600-site Fountain of Youth Spa in Niland, Calif. “We’re just about full. Last year we filled up about a week earlier.”

 

“Business is pretty strong,” added Brenda Reel, manager of the 130-site Happy Traveler RV Park in Palm Springs, Calif. “We have no vacancies for February and March.”

 

For additional commentary, statistics and sources on the latest camping trends in campgrounds and RV resorts, please contact Linda Profaizer at the National Association of RV Parks and Campgrounds at (303) 681-0401 and visit the association’s website at www.gocampingamerica.com. Additional Sunbelt park contacts are listed below:

 





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