Is Owning a Campground Profitable?

Yes, investing in a campground can create a steady profit for owners. Initial costs for opening a campground can range from $1 million to $4 million, including the cost of purchasing land and other expenses.

With careful planning, your campground can become highly profitable and make the initial investment well worth it. From 2014 to 2019, the camping industry saw a 2.7% growth in revenue. This growth continues as the younger generation embraces outdoor lifestyles across the United States and Canada.

HOW MUCH DO CAMPGROUNDS MAKE?

Campgrounds typically create a return on investment between 10% and 30%. Your particular profits depend on how much work you are willing to put in and your expertise in the industry. Campground owners make the highest income by taking advantage of peak seasons, especially summer months, as most campers vacation during these times.

Those considering campground ownership should also account for expenses. Although the initial investment cost to open a campground can be anywhere from $1 million to $4 million, it depends on many factors. Some factors include:

  • Cost of purchasing land
  • Cost of existing camp
  • Cost of renovations/updates

After the high initial startup costs, profit becomes higher, though owners must still consider expenses like staffing, marketing, equipment and adding amenities. You should consult with financial experts to create a plan that ensures profits stay higher than expenses from the beginning. Over time and with strategic management, your profit should continue to grow until you own a flourishing business.

Things to Consider With Campground Ownership

Revenue will vary depending on factors like location, amenities and how much experience you have with managing a business. To answer the question, “Are RV parks profitable?”, here are a few other factors to consider.

  • Campground location: For the highest success, campgrounds should offer convenient access to outdoor spaces while being close to local towns.
  • Your experience: If you are new to the camping industry, you might benefit from the expertise of a franchise to help you streamline your business for better profits.
  • Time commitment: The more time you put in, especially during busy months, the more you can maximize your profits. During slower months, you can often relax and take some time off.
  • Buying versus building: Buying an existing campground might lower startup costs, but you may need to do more maintenance and updates later.
  • Amenities: Adding features like playgrounds, pools and cabins can make a campground more attractive to prospective campers, increasing your business.

Ultimately, owning a campground means working for yourself, setting your hours and enjoying free on-site living. Much of your profit depends on what you put in. Those willing to spend time and energy to increase their campground’s reputation and cater to guests’ desires can make campground ownership a profitable endeavor.

If after consideration this seems like the perfect opportunity for you – view our RV resorts for sale!

Join the KOA Family of Campgrounds

If you are considering purchasing a campground or RV park, know that this industry provides excellent profit opportunities for those willing to work through the initial startup costs. However, the total profit you make depends on many factors including location and business experience.

Consider investing in the Kampgrounds of America, Inc. franchise to get benefits like marketing and programs to help your campground succeed. KOA has already built a brand customers love and rely on. For more information, fill out an online contact form today.