Forum Discussion
wapiticountry
Aug 18, 2021Explorer
mikestock wrote:Apparently that park has a business plan that works for them. They were able to accommodate a last minute traveler when all the other parks were full. According to the original poster, the rate was much higher than the other parks, but he still paid because it was the only park with a vacancy that served his needs. The business plan of the park may very well be becoming the provider of last resort. The original poster said the park had no visual appeal, didn't have a lot of amenities and yet it was half full of guests who were paying double what other parks were charging. That means that park has much higher margins and lower costs than their nearby competitors. It may very well be the most profitable of all, and that is what the ownership ultimately interested in.
The first rule in business: Charge too much and you won't make money, charge too little and you won't make money. The best rate to charge is the one that maximizes profit. Unless this campground is full when all others in the area are full he needs to adjust accordingly or learn the hard way.
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