In its Q2 Business Report, Kampgrounds of America, Inc. (KOA) reported continued growth with increases in registration revenue and advanced deposits.
KOA saw a 5.9% increase in registration revenue in the second quarter of the year, the company noted in a press release.
Additionally, advanced deposits finished the second quarter 1.8% higher than what they were at the end of 2021. This places advanced deposits 62.9% over the same period in 2019, which is the strongest pre-pandemic camping year.
Short-Term and Long-Term Performance Shifts
Focusing on short-term business, mainly reflecting leisure travel, KOA reported a 5.6% increase in registration revenue. Occupancy, however, dropped 3.4% when comparing the second quarter to the prior year.
“The pandemic brought a large, new audience into the great outdoors,” said Toby O’Rourke, president and CEO of KOA.
“We see outdoor travel continuing to resonate, and many are camping again this year. However, other forms of vacation are rebounding, and some campers are adding those back into their plans. Last year, our business surpassed every expectation, and we are keeping pace with it thus far this year. The surge of interest in camping the past couple of years has reset our forecasts and established a new bar well ahead of pre-pandemic numbers that we will benchmark and plan against going forward.”
KOA’s long-term business closed the quarter similarly. Long-term registration revenue was 6.9% higher than in 2021, while occupancy was down 3.3%.
Franchise System Grows, Adds Industry-Leading Resale Program
During the second quarter, KOA expanded its footprint in Canada with a new conversion campground in Lethbridge, Alberta.
“Growth in Canada has been a focus for us,” said Ann Emerson, chief operating officer of KOA system. “Not only are we applying resources to bring more yellow signs to Canada, but we are also working to bring increased value to our Canadian campgrounds.”
KOA’s new resale program, new this year, has “flourished,” with nine campgrounds placing listings. The program connects franchise owners to an independent, licensed real estate agent with a campground ownership background. It leverages KOA’s network of campground buyers and relies on industry knowledge to deliver owners the best return on their investment.
KOA’s Corporate Portfolio Continues to Expand
During the year’s second quarter, KOA continued the focused expansion of its owned campground portfolio. Throughout this period, KOA acquired three campgrounds. The company welcomed Gatlinburg East/Smoky Mountain KOA Holiday in Tennessee, Ouray KOA Holiday in Colorado, and Livingston/Paradise Valley KOA Holiday in Montana. Additionally, KOA purchased land for future development in Maine.
“Our interest in expanding our campground holdings has not slowed,” said Darin Uselman, chief operating officer of owned and operated assets of KOA (OAK). “We see substantial value in outdoor hospitality and anticipate continued growth in this sector. We’re investing now to ensure a bright future for our company and our brand.”
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.