The Growth of Outdoor Hospitality: Why Campgrounds Are Outpacing Traditional Lodging Options
As travelers increasingly favor flexible and affordable lodging, campgrounds and RV parks are becoming a booming segment with significant investment opportunities.
The Growth of Outdoor Hospitality: Why Campgrounds Are Outpacing Traditional Lodging Options
The hospitality industry has witnessed a significant transformation over the past decade, with outdoor hospitality—including campgrounds and RV parks—emerging as one of the fastest-growing segments. As travelers seek unique, affordable, and flexible lodging experiences, campgrounds are gaining popularity, often outpacing traditional options like hotels and resorts. For investors, this shift presents a lucrative opportunity to tap into a growing market with long-term potential.
Why Outdoor Hospitality Is Thriving
Several factors have contributed to the rise of outdoor hospitality, positioning campgrounds as an appealing alternative to conventional lodging options:
1. A Renewed Focus on Outdoor Recreation
The global pandemic fueled a resurgence of interest in outdoor activities. Travelers turned to nature for socially distanced experiences, and many discovered the joys of camping and RV travel for the first time. Even as restrictions eased, this trend persisted, with more people seeking outdoor escapes as part of their lifestyle.
2. Affordability and Accessibility
Campgrounds and RV parks offer cost-effective options for travelers compared to hotels or vacation rentals. For families and budget-conscious adventurers, the ability to enjoy scenic destinations without the hefty price tag of traditional lodging makes campgrounds an attractive choice.
3. Flexibility for Modern Travelers
From weekend warriors to full-time RVers, campgrounds cater to a broad range of travelers. With options for tent camping, RV hookups, and even luxury glamping accommodations, campgrounds offer unparalleled flexibility for various budgets and preferences.
4. The Rise of Glamping
Glamping, or glamorous camping, has brought new life to the campground industry. By combining the adventure of camping with the comfort of high-end amenities, glamping has attracted a new demographic of travelers who value unique and upscale experiences.
5. Sustainability and Eco-Tourism
Many campgrounds are embracing sustainable practices, appealing to eco-conscious travelers. Solar-powered facilities, recycling programs, and partnerships with local conservation efforts are becoming standard features, enhancing their appeal to modern guests.
Why Campgrounds Are Outpacing Traditional Lodging
Campgrounds’ growth is not just a fleeting trend; they’re outpacing traditional lodging options in key areas:
- High Demand: The RV Industry Association reports record levels of RV ownership, with millions of Americans hitting the road annually. This has created a consistent demand for RV-friendly campgrounds.
- Lower Operational Costs: Compared to hotels, campgrounds typically have lower overhead costs, making them more resilient during economic downturns.
- Adaptability: Campgrounds can quickly adjust to market trends, such as adding glamping tents, tiny cabins, or event spaces to attract diverse traveler groups.
- Technology Integration: Online booking platforms and mobile apps are making it easier than ever for guests to find and reserve campsites, streamlining the customer experience.
Opportunities for Investors
The growth of outdoor hospitality presents several avenues for investors to capitalize on:
1. Acquiring Existing Campgrounds
Investing in established campgrounds with strong customer bases and operational histories can provide immediate cash flow and stability.
2. Developing New Properties
With increasing demand for campgrounds, developing properties in high-demand areas near national parks, lakes, and tourist attractions offers significant growth potential.
3. Adding Value to Current Assets
Enhancing existing campgrounds with amenities like Wi-Fi, recreational facilities, or glamping options can attract new guests and justify premium pricing.
4. Partnering with Tourism Boards
Collaborating with local tourism boards or outdoor activity providers can create mutually beneficial relationships that boost visibility and bookings.
The Road Ahead
As outdoor hospitality continues to grow, campgrounds and RV parks are well-positioned to lead the charge. By catering to shifting consumer preferences and embracing innovation, they’re redefining what it means to travel and lodge in the great outdoors.
For investors, this is a market brimming with potential. With the right strategy and vision, campgrounds can become not just a passion project but a profitable and sustainable venture in the evolving hospitality landscape.
Dylan Kidd is the Founder and Managing Partner of Campfire Capital Group, leading investments in the outdoor hospitality industry. Since 2018, he has specialized in buying, selling, and scaling RV parks and campgrounds, leveraging his deep industry knowledge and hands-on approach.
