In a recent collaboration with CampLife, Jeff Hoffman, a veteran in the camping industry with nearly five decades of experience, shared his insights on maximizing campground revenue.
Hoffman, who has owned 13 campgrounds, aims to assist owners in refining their approach to rate management, highlighting the importance of adaptability and strategic planning in the sector.
Hoffman emphasizes the dynamic nature of pricing within the campground industry, advocating for continuous monitoring to swiftly respond to market changes and customer demand. “Pricing is a living, breathing thing. You have to manage it more than just looking at it at the beginning of the year,” Hoffman stated, underscoring the necessity for campground owners to employ the right technology to aid in this process.
The use of advanced reservation systems that support Dynamic Pricing is highlighted as crucial by Hoffman.
Unlike static pricing models that set different rates for weekdays, weekends, and holidays based on market analysis, Dynamic Pricing adjusts rates in real-time based on occupancy levels and demand patterns.
This approach allows for the accommodation of early bookers with lower prices, which gradually increase as occupancy rises, thereby attracting loyal guests.
Tyler Duffy, president of CampLife, echoed Hoffman’s sentiments on the benefits of dynamic pricing. Duffy pointed out that this pricing strategy not only benefits early and faithful guests but also helps campground owners by adjusting rates to meet demand, thereby optimizing revenue.
“That’s the beauty of dynamic pricing. You can keep the pricing low for the early bookers, and as your occupancy increases, the system can bump up the rates to meet demand. By starting with lower prices and bumping up, you entice the early and faithful guests,” Duffy said.
In 2023, the camping industry observed a slight decline in revenue and camper nights, a trend that Hoffman addressed.
He cautioned against the sole reliance on rate increases to counteract revenue declines. Instead, the industry veteran advocates for pricing strategies that incentivize longer stays, such as offering discounts after the first couple of nights at full price. This approach aims to create value for both campers and park owners, encouraging sustainable growth.
Hoffman’s strategies, shared in partnership with CampLife, offer practical, actionable advice for campground operators. These insights are designed to transform how campgrounds operate, ensuring they not only attract but also retain guests who will become integral to their community.
CampLife, LLC, provides reservation and park management software tailored to help operators maximize their properties and deliver experiences that guests eagerly repeat.
Serving over 700 parks across the United States and Canada, CampLife’s software facilitates online site reservations and automates everyday park tasks. This increases efficiency, reduces employee fatigue, and generates the focused energy needed for a campground to thrive.
For campground operators seeking to enhance their revenue management practices, Hoffman’s insights and CampLife’s technological solutions provide a comprehensive resource. These strategies not only address the immediate challenges of dynamic pricing and occupancy management but also offer a long-term vision for growth and community building within the camping industry.
