Running a successful campground or RV resort requires more than just beautiful scenery and available sites. It involves strategic campground revenue management, campground branding management, and outdoor hospitality labor management to ensure efficiency and profitability. While some owners may attempt to handle operations independently, hiring a third-party management company for your campground or RV resort ensures more time saved, your properties to be well-maintained, reduced stress, and ultimately increase of revenue. Here’s why hiring a professional campground management company is a worthwhile investment.
The Cost of Investing in Third Party Management
The average yearly cost of investing in a campground management company according to Bonfire, ranges from $15,000 to $50,000 in addition to 15-30% of the campgrounds generated revenue. By investing in a campground management company rather than running it independently, it can be more cost efficient in several ways such as:
- Reduced Operational Costs
- Efficient systems for staffing, maintenance, and reservations, helping cut unnecessary expenses down.
- Increased Occupancy & Revenue
- Implementing dynamic pricing and marketing strategies to attract more guests and maximize revenue.
- Marketing & Advertising Savings
- Provides proven strategies to increase visibility and guest engagement and retention rates.
- Fewer Legal & Compliance Risks
- Stays on top of local and state regulations keeping the campground compliant.
- Access to Technology systems
- Management companies have proprietary technology and processes that will benefit the technological side of your resort.
- Access to potential discounts
- With a management company, vendors build relationships with more than just one campground which often results in better deals/discounts.
While hiring a management company involves a service fee, the increased revenue, cost savings, and operational efficiency typically outweigh the costs of running the campground independently, making investing in a hospitality management company a smart idea.
The Pros and Cons of Hiring a Campground Management Company
Pros:
- Comprehensive Management: Handles reservations, guest services, and property upkeep.
- All-in-One Solution: Takes care of all operational aspects, reducing stress for owners.
- Marketing Expertise: Uses strategic marketing to attract more visitors and increase retention rates.
- Revenue Optimization: Enhances pricing and occupancy rates to maximize revenue and encourage camper return rates.
- Data-Driven Decisions: Leverages advanced reporting tools to track business performance and identify areas for improvement.
- Stress-Free Operations: Allows owners to focus on the bigger picture while the management team handles day-to-day tasks.
Cons:
- Service Costs: Management companies charge a percentage of revenue or a flat fee, which can impact profits.
- Reduced Oversight: Owners may feel a loss of direct control over operations and decision-making.
- Alignment Matters: Not all management companies align with every campground’s vision and goals.
Key Questions to Consider When Hiring a Hospitality Management Company
1. What Are Your Campground’s Goals?
Are you looking to increase revenue, enhance guest experiences, or expand operations? Clearly defining goals will help determine if third-party resort management services are the right fit and if so it will help clarify which management company to go with. By knowing your campgrounds goals it can help you carefully select a management company. By being careful in your selection when choosing a management company that fits your campgrounds specific needs and objects, it can help better the outcome of your goals.
2. What is your Operation Style?
Hiring a third-party campground developer is an investment, but it can also lead to increased profitability. Consider the current operation styles of your campground and how you want it being run, assess if the management company’s operation style aligns with your campgrounds style and how it could improve current operation systems.
3. What Are the Campground’s Long-Term Visions?
Realizing the long-term visions of your campground will ensure that the partnership aligns with your goals, prevents conflicts, and sets your business up for long-term success. It will give clarity on determining the right management approach to different aspects of the campground and help satisfy needs.
Investing in a third-party campground management company can be the key to long-term success. From campground financial management to campground branding, management experts provide the tools, resources, and industry knowledge necessary to streamline operations, boost revenue, and enhance guest satisfaction. If you’re looking for a way to take your campground to the next level, Northgate Resorts may be the perfect fit for your campground and its growth. Partnering with professionals like Northgate Resorts can be a transformative decision, offering long-term rewards and relieving the challenges of solo management. With our expertise, we can enhance guest experiences, optimize operations, and drive profitability, ensuring your campground thrives in a competitive market.