Outdoor Hospitality; What Lies Aheadkbaindustries
While it may be true that no one saw 2020 coming, some industries fared better, while others are set to make a greater comeback in 2021. Luckily, the outdoor hospitality market is one poised for continual growth! Many Campground and RV parks found themselves busy and overcrowded throughout the pandemic. This in part was due to an influx of new RVers as well as a many work from home positions. We see that 2020 edged on a new wave of outdoor travelers yearning for a simplistic form of entertainment while still being safe and active.
Continually, the industry has become more and more compelling to millennials who enjoy the less expensive cost of accommodations and travel. As a result of these positive trends, the outlook is positive, albeit not without concerns. While Covid has put more emphasis on local travel due to restrictions, we may see some downward pressure as restrictions are lifted and global travel opens up further. In addition, we may see some volatility in fuel prices which has a direct correlation to RV travel and could lead to a decline in revenue for campground owners.
The industry is also showing an increase in development funds. It seems some developers are pivoting focus to building new or improving camping resorts around the country. as a whole is expected to see continual growth moving into the new year.
More than half of all campers (51%) say they are looking into buying or interested in purchasing an RV. In June, more than 41,000 RVs were shipped out, the industry association reported. For context, this was a 10% increase from the same time last year. Since business began reopening after COVID there has been an increase in road trips and traveling which have also prompted a steady growth of RV sales. As a whole, the Recreational Vehicle Industry Association reported RV sales rising 4.5% in 2020, to over 424,400 units.
Nearly 1/4 of all first time campers took their first trips during the pandemic. KOA reports; 19% of millennials, 17% Gen X & 15% of Gen Z travelers reported camping for the first time in 2020.