Across several key outdoor hospitality destinations in North America, campground operators are navigating a localized supply surge stemming from post-pandemic expansion projects. While overall consumer interest in outdoor recreation remains steady, the rapid addition of new campsites in select markets has diluted individual market share. As a result, park owners are discovering that relying solely on standard transient RV site fees is no longer enough to maintain healthy profit margins.
To protect occupancy and bottom-line cash flow in an increasingly competitive environment, forward-thinking operators are shifting their operational playbooks. Sustaining profitability now requires a multi-pronged strategy: analyzing local inventory shifts, capturing high-margin ancillary revenue, and building a multi-year financial framework that protects long-term equity.
Navigating Localized Oversupply Challenges
Localized oversupply in key destinations is actively diluting transient site occupancy, making traditional site-fee pricing far more competitive. “In a market like Verde Valley in Arizona, there’s been 30% new supply over the last three years,” stated Mike Harrison, chief operating officer of CRR Hospitality. “It might look like demand is down… but it is now spread.”
While wholesale vehicle shipments calibrate to broader economic conditions, consumer participation on the ground remains steady.
According to the RV Industry Association‘s Summer 2026 Quarterly Shipment Forecast, wholesale shipments are now projected at a median of 314,000 units — down from the Spring forecast of 349,000 and an 8.2% decline from 2025. The revision reflects higher interest rates and tighter household budgets softening consumer demand for new RVs.
With new RV purchases softening, travelers are directing more discretionary funds toward experiential travel — meaning campground owners must focus on capturing guest spending on-site rather than relying on new RV buyers to fill empty sites.
Driving Ancillary Revenue and Onboarding New Campers
Offering accessible entry-level camping options acts as a high-margin onboarding ramp for younger demographics, who frequently drive significant spending in food, beverage, and activity rentals.
With transient RV site demand spread across more regional properties, operators need strategies to drive higher guest spend once campers arrive on property. Sandy Ellingson, an RV industry advisor, noted that entry-level accommodations serve as a primary onboarding pathway for Gen Z and Millennial campers who are not yet ready to purchase expensive rigs. “Tents were the best sales tool the RV industry ever had,” Ellingson explained, emphasizing that parks offering accessible entry points build a sustainable runway of long-term customers.
These entry-level and transient guests often generate higher retail margins than traditional campers who bring everything with them. Wendy Heineke, principal outdoor hospitality consultant at Hospitality Across America, pointed out that operators can significantly boost average daily rate (ADR) and overall site yield through structured add-ons. “It’s not just about the add-ons, but the experiences—the food, food trucks, events,” Heineke said, noting that offerings like golf cart rentals, firewood sales, and kayak rentals turn lower-cost sites into lucrative revenue engines.
Industry data strongly supports this focus on experiential add-ons. The KOA 2026 Camping and Outdoor Hospitality Report reveals that average daily expenditures per person (excluding accommodation fees) have reached over $200. Younger campers who begin their journey with accessible site options demonstrate a strong willingness to spend on-site on recreation, food, and local experiences.
This shift toward on-site experiential spending reflects broader national economic data. According to the U.S. Bureau of Economic Analysis (BEA) Outdoor Recreation Economic Statistics Report, the national outdoor recreation economy generated $696.7 billion in economic value, with travel, tourism, and supporting trip activities accounting for over 51% of that total. As consumer dollars migrate away from major vehicle purchases and toward trip-related activities, parks equipped with robust food, beverage, and recreational amenities are uniquely positioned to capture a larger share of this national travel spend.
Balancing Amenity Costs with Real Bottom-Line Yields
Every amenity upgrade must be evaluated through a strict cost-per-occupied-site lens to ensure ancillary offerings generate true net cash flow rather than unnecessary labor expenses.
Adding low-rate site options or extra amenities without tracking operational overhead can quickly erode operating margins. Tyler Otto, president and owner of Specialized Accounting, warned operators against expanding inventory without calculating labor and maintenance costs. “If we start looking at… cost per occupied room [site], you do not see the returns by getting more tent sites at $30 a night especially because those people… want parts of [the amenities],” Otto explained.
Instead of adding unmanaged, low-yield sites that drain staff resources, Otto noted that high-performing parks achieve far better financial returns by upgrading selected inventory into premium glamping units, safari tents, or targeted revenue generators like waterfront food and beverage hubs.
Aligning Operations with Long-Term Financial Strategy
Tax decisions and capital upgrades should be driven by a clear five-year business strategy rather than a rush for single-year write-offs.
Generating stronger yield on-site only succeeds if park owners protect that capital through sound financial structuring. Otto cautioned operators against making major operational or capital decisions purely to achieve an immediate tax deduction. “Making a single financial accounting tax decision just with this year in mind is a really bad idea,” Otto stated.
While tools like bonus depreciation allow park owners to write off asset purchases quickly, long-term wealth preservation relies on fundamentals—such as proper S Corp elections, optimized owner compensation, and asset protection strategies. Ensuring that entity structures minimize self-employment taxes and shield the business from liability creates a stable financial foundation, allowing park owners to navigate short-term market shifts while building long-term equity.
The full episode of this MC Fireside Chats broadcast is available at https://moderncampground.com/fireside-chats/mc-fireside-chats-july-15th-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.