What's the price "tipping point" for you?
I didn't want to hijack the other thread about how some KOA's have gotten too expensive, so I'll ask here: What's your price "tipping point". How much are you NOT willing to pay for a normal/usual ...
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magnusfide wrote:westernrvparkowner wrote:
The guy with the 50% guideline is pretty close to accurate in many instances.
I'm sure as a park owner you'd want to promote that 50% idea and believe there's that kind of demand. But in the DC area as well as other cities, there's rooms in very good hotels going begging according to the travel websites and they're well under your quotes. With gas prices being what they are, if a park owner wants to keep his campground full, he'd be better off shooting for 35-40% of the local hotel room rates. The greedy owners will have spaces sitting empty.
Supply and demand. I've gotten deals in San Diego because of the higher density of hotels they may have vacancies at times that drive rates down but that's not universal. I don't travel weekly but I travel enough to know that $100 is the minimum for a safe clean hotel in most places these days.
An owner doesn't necessarily want to book every site either. If a campground is 100% full every weekend, then the price point is too low. You'd have to do do the math, but one or two open spaces is probably the right pricepoint. 30% vacancy consitently, price may be high but you still have to review whether you lost travelers to other options or whether tourism in general slowed down. That's economics.
