Challenges to Consider When Managing Multiple RV Parks

October 13, 2023

Business is booming in the RV Park/RV Resort/Campground world! In 2022, then number of RV Parks and campgrounds sold increased by 15.8%, and the number of new RV park developments increased by 12.3%.

These numbers indicate a shift in our industry from the traditional Mom and Pop business model to a more corporate approach. However, there are some significant challenges that owners may not have considered when creating a business plan that involves multiple parks.

Let’s discuss these challenges and find solutions together.

Lack of Consistency in Policies

One major issue that needs to be addressed is the lack of consistency in policies across different RV parks. Each park tends to have its own unique quirks and operating procedures.

For example, one park may require guests to put a deposit on a reservation, while another park doesn’t require any deposit at all.

Additionally, pet policies may differ, with some parks allowing pets to roam freely while others require owners to be with their pets at all times.

To overcome this challenge, it’s crucial for corporate owners to establish clear policies and procedures at the corporate level. By doing so, you can ensure consistency across all parks and facilitate employee transfers. Moreover, having standardized policies will streamline your reporting process, preventing the need for unique reports from each park.

Accounting Systems

When acquiring existing RV parks, it’s highly likely that their Chart of Accounts and income reporting methods will not be consistent. Implementing changes to unify these systems should be a well-thought-out process. For instance, converting parks from an accrual-based accounting system in their reservation system to a cash-based system requires careful recoding to ensure consistent reporting across all parks.

A crucial step in this process is educating managers on the changes being implemented. By involving them and ensuring they understand the reasoning behind the changes, you can overcome resistance and ensure a smooth transition.

Reservation Systems

Even if all the parks are using the same reservation system provider, it’s unlikely that they utilize the system in the same way. This can result in reports that appear similar but measure different aspects of the parks’ operations. For example, one park may require a deposit for only one night’s stay, while another may require a 50% deposit, and yet another may require full payment upfront.

To address this challenge, it’s essential to establish general rules for the reservation system that are consistent across all parks. By setting clear guidelines, reservations are handled in a standardized manner, making reporting and analysis more accurate and efficient.

Policies and Procedures

In the Mom and Pop business model, written policies and procedures may not have been a priority, as owners could address deviations on-site. However, with a corporate ownership structure, the need for detailed and consistent policies and procedures becomes paramount. These documents serve as a guide for how the RV Park/RV Resort/Campground should be run and ensure that operations align with the owning organization’s expectations.

To overcome this challenge, it’s crucial to develop comprehensive policies and procedures that are consistent across all parks. While some level of variation may exist to accommodate specific park characteristics, strive for aminimum amount of deviation to maintain operational efficiency and brand consistency.

Conclusion

Addressing these challenges after acquiring multiple parks is possible, but it’s much easier and more effective to plan and implement solutions before closing on the first park. By focusing on policy consistency, accounting system alignment, standardized reservation processes, and well-defined policies and procedures, you can streamline operations and set the stage for success across all your RV parks.

TL:DR

I can guarantee that different parks have different operation systems.  Ignore this issue at your peril.

Remember, we’re here to support you on this journey. If you have any questions or need assistance, please don’t hesitate to reach out. Together, we can navigate the challenges and make your RV parks thriving and profitable ventures.

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