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Key Considerations for Conducting a Successful RV Park Feasibility Study

According to the Kampgrounds of America's 2022 camping report, over half of all new campers in 2021 were millennials.


This market feature is a demographic change that has developers excited about building or expansion of their existing RV Park.


Nevertheless, despite the increased capacity of RV parks around the nation, our RV Park Feasibility research whereas Feasibility-Study.com team has provided a large number and are seeing increased demand for RV Park Feasibility Studies, we have observed overall RV Park occupancy being a challenge.


RV Park Feasibility Studies
RV Park Feasibility Studies

Occupancy Measure

In several markets the Peak Months indicate up to 100 percent occupancy. Shoulder months are less than 60 percent and Low Months are 10 to 20 percent. The overall occupancy is adjusted based on these market indications.


Rates

Rates in many locations have increased substantially since 2013. In fact, in the last 10-years, we have seen rates double in some regions. Yet, as more supply has been added, rate growth in markets such as Florida have stabilized at a 2 to 3 percent annual growth rate - stagnating due to increasing supply. $40 daily is the low and for water front sites we see about $150 to $200 daily.


Weekly rates have varied, yet are from $400 to $650 overall. Monthly rates range from $900 to $1,650 in 2023.


Development Costs

Land costs and development costs have also increased over the most recent 10-years. An RV Park per unit was less than $25,000 in 2013. In 2023 we saw per unit rates at high as $80,000 per unit in well-appointed RV Parks whereas the mean is now over $50,000 per unit.


Financing

The SBA Feasibility Study is our number one demanded RV Park Feasibility Study in 2021 through 2023. We expect this to continue based on conversations with project owners and developers.


RV Park Feasibility Study Challenges

Unlike Hotels and other commercial real estate, a data base of rents and occupancies has not been made available. Sources include surveys by reviewing advertised rates, interviews with RV Park managers, and in-house files whereas we have worked on RV Park Expansions and have the occupancy and rates provided monthly by RV Park owners who provided them to us.


Glamping

We have discovered since 2020 this feature at RV Parks and Campgrounds is exploding. From tiny home conversions to Old West Wagons, this add on captures up to $300 per night for a $200,000 item add on for developers. Nice rate of return and strongly recommended for that increasing younger generation of RV Park enthusiasts.



Demand Generators

Water views and frontage are gaining the most out of rates. Nearby shopping is also increasing in importance. While he is out fishing, she wants to unpack the car and do a little shopping. Nevertheless, its still out being outdoors. A well-positioned park might have nearby forests and wilderness reserves, or even race tracks for motocross, snowmobiling, and auto racing. But National Parks rule. We see the highest rates and occupancies at the Grand Canyon and similar venues.


Publisher Details: RV Park Feasibility Studies: SBA Feasibility Study Consultants: USDA Feasibility Study Consultants: Feasibility-Study.comhttps://www.feasibility-study.com/

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