| 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 Campground’s reputation 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. |
How Profitable is the Campground Business?
