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High Development Costs? Why Campground Operators Are Rethinking Site Design

According to the RV Industry Association‘s April 2026 survey of manufacturers, total wholesale RV shipments dropped 17.4% year-over-year, indicating a broader retail market slowdown that directly impacts transient campground occupancy. 

At the same time, the 2026 Camping & Outdoor Hospitality Report by Kampgrounds of America (KOA) highlights that while participation remains stable compared to pre-pandemic baselines, operators must adapt to a highly selective guest who prioritizes mental comfort and specific amenities over basic site infrastructure.

Faced with these macroeconomic headwinds, forward-thinking business owners are moving away from rigid, multi-million-dollar development templates. Instead, the operational focus has shifted toward cost-effective layout configurations that protect immediate cash flow, reduce upfront construction overhead, and maximize return on investment (ROI).

The Operational Impact of Slowing Retail Sales

A decline in retail RV sales means lower transient bookings, requiring operators to pivot toward long-term stays or specialized regional experiences to maintain steady revenue.

Scott Bahr, President of Cairn Consulting Group, noted a distinct shift in operator sentiment during the June 2026 RVs Move America Week, where industry conversations turned sharply toward solutions for slower manufacturing pipelines. “The market itself, the RV industry is slow right now,” Bahr shared. “According to the economists, it’s projected to stay fairly slow. With some obvious differences out there, certain types of RVs are selling better than others.” 

Bahr emphasized that instead of merely identifying top-line problems, operators are actively seeking specific operational pivots—such as adjusting demographic targeting and marketing pipelines—to combat attrition.

As operators look to navigate these lower transient numbers, the immediate focus turns to controlling initial layout expenses and capital infrastructure budgets.

Rethinking Infrastructure

Transitioning from expensive concrete infrastructure to manicured crushed gravel sites can slash development costs significantly, freeing up capital for high-yield guest amenities.

While American developments traditionally favor expensive concrete pads, alternative models demonstrate how minimizing ground disruption protects operational cash flow. Simon Neal, Founder and CEO of CampMap, pointed out that European five-star sites often cost significantly less to build because they avoid heavy paving. 

“Typical site costs of $60,000 to $80,000 [in the US] is just really crazy compared to what it costs to develop here in Europe,” Neal explained, adding that a more basic site approach allows European developers to allocate spare cash to high-margin community assets like pools and restaurants.

Paul Bosley, founder of Business Finance Depot, has seen this value-engineering strategy succeed firsthand with domestic operators looking to stay within strict lender budgets. 

“I recently talked to my client that’s building a Jellystone Park… he moved a lot of his concrete costs to crushed gravel and he just cut back on some of his landscaping to bring it in at the cost he was trying to bring it in at,” Bosley stated. By avoiding over-built site footprints, operators can protect their loan-to-value ratios and secure faster financing approvals across portfolios.

Beyond lowering initial construction costs through strategic material selection, operators are also rethinking how they utilize their land to generate consistent, year-round cash flow.

Long-Term Utility Over Short-Term Transient Stays

Converting underperforming short-term sites into dedicated long-term community housing or workforce spots minimizes seasonal revenue volatility and guarantees monthly occupancy.

The structural shift away from standard overnight layouts is increasingly being driven by localized industrial demands, such as data center construction and manufacturing infrastructure projects. Ed O. Bridgman, owner of EOB Consulting, noted that traditional short-term “parks” are underperforming compared to long-term community destinations. 

“There is nobody building a park today, and that’s because parks are the only one of the different RV destination types that is actually losing money,” Bridgman argued. 

“So parks are being converted over to communities… the trend is going towards more long-term use.” Bridgman highlighted that regional data center hubs create massive demand for full-time workforce housing, where incoming workers require quiet, basic utilities rather than expensive luxury leisure amenities.

Whether pivoting to industrial workforce housing or building out a modern resort layout, matching asset development to modern user demand is critical for sustained profitability.

Balancing Essential Amenities with Shifting Demand

To capture the most lucrative segments of the returning market, capital should be funneled directly into shared recreational spaces and physical comforts rather than over-engineered individual sites.

Data suggests that when guests evaluate properties, their search behavior heavily prioritizes shared amenities over individual site luxury. 

According to findings from Campeggi’s 2026 Camping Report via Tourism Review, family booking inquiries represent 77% of the total market, with top priorities focused on entertainment, swimming pools, and pet-friendly additions. 

Mirroring this focus on shared utility rather than site infrastructure allows campground owners to command premium rates while keeping site development costs lean. “Make the site more basic, spend more elsewhere, and it would also be good for your guests,” Neal concluded.

The full episode of the this MC Fireside Chats broadcast is available at https://moderncampground.com/fireside-chats/mc-fireside-chats-june-3rd-2026/

About MC Fireside Chats

MC Fireside Chats is a live podcast experience dedicated to the outdoor hospitality and outdoor recreation industries. Hosted by Brian Searl, founder and CEO of Insider Perks and Modern Campground, the show offers engaging discussions with industry leaders, innovators, and experts shaping the future of camping, RVing, glamping, and outdoor recreation.

Airing every Wednesday at 2 p.m. (ET), the show follows a structured weekly theme to deliver deep dives into the most relevant topics:

  • Week 1: Industry Trends & Insights
  • Week 2: Enhancing Guest Experience
  • Week 3: Business Operations & Management
  • Week 4: Marketing, AI, and Technology

Each episode features a panel of recurring guests, complemented by 1–2 rotating special guests, including industry analysts, campground owners, technology providers, sustainability advocates, and more. Whether exploring the latest market trends or innovative guest experience strategies, MC Fireside Chats delivers thought-provoking insights for professionals and enthusiasts across the outdoor recreation spectrum.

To explore previous episodes of MC Fireside Chats, visit: moderncampground.com/mc-fireside-chats.

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