Packbacker wrote:
We have a very good engineer on board who has RV park experience. Right now we’re in the process of tying up the land and then we’ve been told we have 4-6 months to wait on permits before construction can begin. As far as price goes, we had figued on an average of around $47.50. Prices at parks that would be similar to ours in our region range mostly from $40-$60 nightly. We were hoping to get our name out about 3 months or more ahead of opening and hoping for an average of 40% occupancy. Other parks in the area seem to operate at 60-70% occupancy even during this time of year. I realize that it will take some time to get established but we feel very good about our location.
One thing I haven’t seen mentioned much is a hot tub. We have a pool in our plans and I was wondering about a hot tub with it too, is that something anyone looks for?
Have you done any research on what to expect in terms of occupancy? The fact you say the nearby parks "seem" suggests to me that you probably drove by and just did a quick mental estimate without looking at longer term numbers.
Also, you seem to have conflicting information. You suggest you aren't going to be a destination park but you have destination park pricing and mention destination park amenities and nearby attractions. Quick just off the freeway overnights are usually lower priced. They also don't translate to high occupancy rates and they increase the costs for staffing since you need to interact with lots of people on a daily basis. They counter this by keeping the costs for amenities and other stuff minimal.
If you are talking about seasonal or other long term stays, figure drastically lower per night pricing. Monthly stays might be in the $20-25/night range for a nice park (monthly stays are often in prime months not year round so don't figure 100% occupancy) and annual could easily drop down to $10/night depending on the area.
I'm not saying it's not a good business opportunity but it doesn't sound like you've done the research to determine if it is a good deal.
PS: We like hot tubs but your first order of business is to determine what type of park you want to be and then assess how much each feature is likely to draw in customers from that market type. People like lots of stuff but are they willing to pay for it? Spend the money on items that pull people in, stay longer and allow you to charge higher prices.
