Forum Discussion
Bumpyroad
Feb 08, 2017Explorer
westernrvparkowner wrote:Bumpyroad wrote:Your business math is just plain wrong. It is a given that some of those 80 percent will also be PPA members, so the park will have less revenue from that business. On top of that, those 20 pecent additional guests have a cost to them. Electricity, water, and all the misc. costs of a guest. On top of that, there is no guarantee that offering fifty percent discount will bring in a single additional customer, yet it is likely some of the existing customers will use get the PPA discount. That would mean the park would lose money.
check out the locations/restrictions/etc. on line. call and make reservations with the campground. I have been in some that were bare bones and some that were very nice. if a campground is normally 80 percent full and happens to fill that 20 percent at half price, it is a plus plus, regardless of what a campground owner might think.
bumpy
PPA works best in three situations.
1. Where the park is has a lot of competition and is not the most desirable of the parks.
2. Where the price can be set where a 50 Percent discount would actually allow the park to make what it really wants for the site.
3. When the park is located in a location that otherwise would not attract customers.
PPA sells the idea that parks are filling sites that otherwise would go empty, but for most parks that is simply not true.
it is completely within the park's purview to "ration" out available spaces for the PA rate. I have had stays at the reduced rate that exceeded the 3 night rule, etc., and doubt that the campground would allow that if they were losing all that money. the pool needs to be maintained as do the grounds and one or two more people using the facilities surely doesn't make a big dent in the utility bill, unless your maintenance folks get paid more if they have to take care of additional people.
I'm sure that some of this expense is written off as good will and perhaps the people will return or increase patronage by word of mouth, if they enjoy their stay.
bumpy
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