Kampgrounds of America, Inc. (KOA) saw continued revenue growth in the third quarter of this year, the company’s Q3 Business Report reveals. Meanwhile, occupancy is still adjusting to a new bar set following a successful 2021.
Versus the same time last year, revenue climbed 2.1% on a same-store basis, the company said in a press release. Additionally, advanced deposits on future business are up 4.5%.
Short-Term and Long-Term Performance Analysis
Short-term leisure travel, the bulk of KOA’s business, posts a 1.5% increase in same-store registration revenue over the first three quarters of last year.
However, occupancy decreased for the quarter by 6.6% as the business adjusts to a new level established in 2021. Short-term occupancy for the period was 29% and 11.5% improved over the same time frame in 2020 and 2019, respectively.
“Our business saw an exponential jump over the past two years. Rather than returning to pre-pandemic levels of occupancy, a new higher bar has been set,” said Toby O’Rourke, president and CEO of Kampgrounds of America, Inc.
“Legions of new campers were drawn to the outdoors and that interest is poised to continue. Many of those who started camping over the past two years report that they plan to continue, particularly in the current economic climate as camping is largely viewed as an affordable vacation option. With deposits on future business sitting comfortably above this time last year, we are very optimistic about what lies ahead.”
For long-term business KOA saw a nearly 6% improvement in registration revenue. Occupancy dropped slightly and finished the quarter 4.2% behind 2021.
New Campgrounds, Recognized as Most Profitable Franchise
The company continued to grow in the third quarter of the year when it added two franchise locations, Colorado and Alaska, to the campground franchise system.
A growing state for Kampgrounds of America, the addition of Fairbanks/Chena River KOA brings Alaska’s state total to four.
“Alaska has made a splash growing from zero locations to four in less than five years,” said Ann Emerson, chief operating officer of Kampgrounds of America Inc.’s franchise system.
“It’s encouraging to grow new markets where we can introduce camping audiences to the service and hospitality of KOA.”
In recent news, the company also wrapped up the third quarter being one of 50 recognized as one of Franchise Business Review’s Most Profitable Franchises. Data were analyzed from over 30,000 franchise owners representing more than 300 brands.
KOA’s Corporate Portfolio Expands by One
During the third quarter, Kampgrounds of America, Inc. added a new California campground to the company’s owned campground portfolio. The most recent addition is Bakersfield RV Resort in Bakersfield, Calif. This addition brings the 2022 acquisition total to 10.
“Our acquisition strategy continues to be aggressive,” said Darin Uselman, chief operating officer of owned and operated assets of KOA (OAK). “This not only makes financial sense, but it also further solidifies KOA’s leadership and position in the growing campground industry.”
About Kampgrounds of America
Kampgrounds of America, Inc. (KOA), currently celebrating its 60th year of operations, is the definitive leader in outdoor hospitality. United under the mission of “connecting people to the outdoors and each other,” the company consists of two unique brands: KOA and Terramor Outdoor Resorts.
KOA, the world’s largest system of privately owned, open to the public campgrounds, consists of over 525 franchised and owned campgrounds. With unrivaled brand visibility, KOA offers campground owners and operators unparalleled support in campground education, design, recruitment, marketing, and technology.
Terramor Outdoor Resorts, a glamping venture, opened its first flagship property in Bar Harbor, Maine in 2020. Translated to “Love of Land,” the brand focuses on delivering a refined and upscale outdoor experience.
For more information, visit KOA.com and TerramorOutdoorResort.com.