Washington‘s City of Chelan Parks Department has conducted its first market analysis for its RV park rates in more than ten years. The study recommends a change in 2023, which will bring rates more in line with market conditions.
According to a report, rates for RV parks must be set correctly as the profits are used to pay for other park operations. The rate hikes proposed would also aid in funding reinvestments in the RV park, which will help keep it an appealing resort spot.
Winter rates are expected to remain low to cater to local monthly rentals.
The study was conducted in-house and examined local competition as well as competition from resort communities such as Bend, Oregon and Lake Tahoe, and Zion River, Utah. The study also looked at the park prices with hotel rates in the local area. Moreover, it examined trends in the industry and the target market’s demographics.
Profits generated from the new fees will be used to fund new 50-amp electrical panels, extended asphalt pads for larger RVs, and new signage for wayfinding.
The rates will be increased by 47%, to be spread over two years. There’s an increase of 7% for 2022, and a rise of 36% is proposed for 2023. The rates for 2024 are likely to correlate with that of the Consumer Price Index (CPI) at that time.
In the span of two years, the park’s peak season summer rate could rise from $57 to $84 for a night, which includes all local and state taxes. This base rate can accommodate as many as four (4) guests. This works out to around $21/night per person.
“The RV Park is such an important asset for the city, and it is run with the same fiscal responsibility of any other enterprise. The difference with a public entity is that the community taxpayers are the shareholders and beneficiaries. The park provides local jobs, funds all parks maintenance throughout the system, subsidizes downtown beautification efforts, drives economic development, and makes Chelan a healthier place to live while increasing our quality of life. Setting the rates within the perfect ‘Goldilocks Zone” is not a decision which is taken lightly,” Chelan’s Parks Director Paul Horne said.