Park Owners Expect More Local Traffic as Gas Prices Increase

As the Russian/Ukraine war continues to rage on, gas prices in the U.S. and Canada have steadily climbed, breaking the former gas price average of $4.11 set in 2008.

While most in the industry believe it won’t impact park owners too much, Woodall’s Campground Management decided to reach out to park owners/operators around the country to see how gas prices are impacting the mindset of owners as they prepare for what is expected to be another busy year.

“When gas prices are high, RV owners tend to travel shorter distances to recreate in their rig. We feel that the higher gas prices may prove to be a positive challenge due to the fact that people are traveling shorter distances in general to conserve gas. Due to the fact that our park is located within a relatively short distance of the DFW Metroplex, we feel that potential customers may give us a second look as an option to still be able to take a vacation and save money on travel costs.”

Horizon manages a wide variety of outdoor hospitality assets nationally, which allows us a unique perspective on the impact of fuel prices on camping trends. We are monitoring our booking trends closely, but so far, we have seen little impact. Destination locations more than 300 miles from major metro markets will likely feel more of an impact as guests may elect to travel closer to home during high fuel prices. We should keep in mind that while fuel costs are increasing, outdoor hospitality remains a very cost-effective travel method compared to more traditional travel costs. Keep in mind, planes use fuel still and airlines are passing those fuel costs on to consumers. And knowing that folks are looking forward to travel in 2022 more than ever before, we should continue to see strong demand.

“We have included reference to the pain point of higher gas prices in our marketing and are promoting our park as a resolution to prevent canceling vacation plans altogether. We are also increasing our marketing efforts toward the staycation option. The outlook for 2022 is positive. More consumers than ever discovered the camping lifestyle due to restrictions imposed during the pandemic. Now, with the reduction in overall COVID cases/hospitalizations regionally, potential travelers are relaxing and are more willing to venture out. People will always find a way to recreate, and we hope they choose to come to recreate with us.”

Properties that are experiencing a decline in bookings shouldn’t panic just yet. We suggest considering more lenient cancellation policies and running pre-season promotions to offer a discounted rental rate for mid-week stays before your peak season. This is a great way to tune into your guests’ concerns while working to fill a time that may otherwise have little occupancy (extend your season on the front end if your operation is ready to go).

The larger issue we have had to strategize around in the last few weeks has been some level of hesitancy from seasonal work campers that have contemplated changing their summer work plans and not travel far to their next gig. We’ve worked to offer these employees a partial fuel reimbursement option paid after 60 days of continuous employment, which has certainly helped. We’re all in this together, and we’re planning for an exceptional summer season.