joebedford wrote:
The park in question @ $375 / month averaged maybe 60% full over the snowbird season. @ $475 / month 2 years later it might be less than half full.
Supply and demand doesn't seem to be working here.
100 sites, 60% occupied at $375 is $22,500 a month. To make more revenue at $475 per site they only have to be 48% occupied, and their costs will also go down (less water, less sewage, less wear and tear etc.) It is likely that price increase is a good business decision, since they apparently will make more net income even if occupancy drops 20%.
If their occupancy is suffering it is almost assuredly not primarily because of price. Very little RV traffic is primarily price driven. People travel and stay where they find things that attract and interest them, not just because it is cheap. Could be overall demand is down and no price is going to attract a non-existent customer. Or the park is not desirable to enough people, and again, price isn't suddenly going to turn a lump of coal into a diamond. Much more to consider than only price.