KOA Helps Franchisees Maximize Revenue, Prepare for New Generation of Campers
KOA adds new position and a Royalty Incentive Program to support campground expansion through expanded services and royalty reductions
KOA NEWS SERVICE (May 11, 2021) – Kampgrounds of America, Inc. (KOA) is offering new incentives to help KOA campground owners complete capital and operational improvements. KOA’s Royalty Incentive Program, which offers a reduction in franchise royalties with qualified developments, supports a newly created role aimed at increasing revenue for campgrounds.
New Sites and Accommodations Manager Drives Development
To help fuel on-site growth, KOA has created a new position aimed at helping owners prioritize their sites and development. In a newly created role as Sites and Accommodations Manager, Greg Dunagan will focus on helping KOA campgrounds reach their full potential by identifying underutilized and underperforming site inventory and suggesting ways to improve or repurpose this inventory to generate greater financial returns and higher guest satisfaction.
Dunagan has a career steeped in campground ownership and operation, including owning and operating KOA campgrounds in Kansas, Virginia, Texas, Nevada and Florida. In his new role, Dunagan will tap into a wealth of data from KOA’s K2 operating system and other historical sources to analyze a campground’s revenue and prioritize areas for potential growth.
“There is so much fantastic data out there that can lead to making the right business decisions,” Dunagan said. “But it can all be pretty overwhelming. My job is to take a deep dive into the data and help owners and managers make informed decisions about the future of their parks. I help them find where the real opportunities for revenue growth exist and show them what the return on any investments in their park will be.”
Dunagan’s services, which are offered free of charge to KOA campground owners, will help owners better meet the needs of the growing camping market. With over 10 million first-time campers getting out to explore in 2020, Dunagan says the time is now to think about what campgrounds can do to capture this new audience and increase their revenue.
KOA’s Royalty Incentive Program Aids Campground Expansion
In addition to dedicated site analysis, KOA’s new Royalty Incentive Program offers financial incentive to KOA campgrounds looking to expand or improve their current footprint through additional sites or upgrades. Campgrounds adding or improving qualified RV Sites, Tent Sites or lodging units may be entitled to royalty incentives aimed at increasing their bottom line.
Dunagan and the rest of KOA’s Campground Design team will work directly with each campground on design while ensuring each project qualifies for the Royalty Incentive Program. Like Dunagan’s services, there is no charge to KOA campgrounds for these designs, saving franchisees thousands of dollars.
Since launching at the beginning of the year, 33 KOA campgrounds have actively participated in the Royalty Incentive Program. This work represents 545 site additions and improvements across KOA locations. More than half of the new and renovated sites will be designed as KOA Patio Sites®, which feature outdoor living space designed for guests looking for exceptional quality and comfort as they relax, cook, dine and entertain.
“Our Patio Sites are a ‘wow factor,” said Larry Brownfield, senior director of franchise development at KOA. “Our guests love them for the added comfort they provide, and our owners love them because they deliver higher occupancy and higher rates.”
KOA analyses indicate that rates for sites upgraded to KOA Patio Sites® are 33% higher than typical RV Sites. The upgraded sites also offer an average return of investment (ROI) of 56% in the first year and a 128% ROI in year two.
For KOA campground owners, the new Royalty Incentive Program allows them the opportunity to begin work on capital improvements, like KOA Patio Sites®, sooner rather than later.
“We wanted to expand and upgrade, but always felt that financially we had to procrastinate, until we read about the KOA Royalty Incentive Program,” said Marc Peterson, owner of Paris Landing/Kentucky Lake KOA Holiday in Tennessee. “We figured it would cost us now or cost us later, and later may not equate to any cash saved like this plan. We dove in headfirst and upgraded 10 sites.”
Peterson transformed three sites into two KOA Patio Sites®, created four new KOA Patio Sites®, ordered two more Deluxe Cabins. He has also added six more KOA Patio Sites® to their planned build-list for 2021.
“This program nudged my wife Starr and I to complete our five-year plan in the first three years,” Peterson said. “Now we can sit back and enjoy the ROI for that many more years, plus recoup some costs via these royalty reductions.”
According to KOA Franchise Chief Operations Officer Darin Uselman, KOA’s new Royalty Incentive Program and the addition of a designated Sites and Accommodations Manager are a continuation of the company’s focus on growth.
“We know the interest in camping and RVing is growing at an astounding rate,” said Uselman. “Ensuring we are providing services and programs to help our campground owners rise to meet the needs of this new generation of campers is central to our mission as a brand. KOA offers that leg up to provide each of our locations the opportunity to be best-in-class.”
About Kampgrounds of America:
Kampgrounds of America, Inc. (KOA) is the world’s largest system of open-to-the-public campgrounds with 525 locations across the U.S. and Canada united under the mission of “connecting people to the outdoors and each other.” The industry leader in outdoor hospitality, KOA’s family of campground brands – KOA Journey, KOA Holiday and KOA Resort – offer sites and amenities designed for every type of camping experience. The company was founded in 1962 in Billings, Mont., and today serves more than a million camping families each year, who rely on the standards of excellence and unique outdoor adventures KOA is known for. For more information, visit KOA.com.