Tang: ‘KOA Has Done Well in Tough Times’

Top-ranking officials with Billings, Mont.-based Kampgrounds of America Inc. said at a Thursday night (Aug. 19) company picnic that the business is performing well, even through recent tough economic times, the Billings Gazette reported.

Oscar Tang, chairman of the holding company that owns KOA, said the company was hit hard at the beginning of the recession but made a quick recovery.

“We’ve done quite well in a very difficult economy,” he said. “It hit us hard in 2008 because of the price of gas, not only the price but how it rose to $4 a gallon so quickly. That was during the height of our season, in August and September. But in 2009, when the economy was at its worst, we were strong.”

KOA runs nearly 500 franchise campgrounds in North America, including 26 it owns. It was founded in Billings in 1962 along the banks of the Yellowstone River.

A national emphasis on staying closer to home while on vacation, affordability and improved facilities, amenities and features at the campgrounds has helped fuel two strong years for KOA, Tang said.

CEO Jim Rogers said a recent survey of campers at KOA sites showed that 58% had stayed at their own homes the night before coming to KOA. He also said camping reservations for the coming months are up 13%.

“We’ve had to build more of a destination, activity-based campground,” he said. “It’s an affordable, experience-based vacation.”

Those improvements, he said, include putting on things like ice cream socials and barbecues for campers, adding on-site stores and creating more activities for them.

But it wasn’t all business for the KOA officials and employees Thursday. After more than a day of board and business meetings, the evening’s event was more social, with games, plenty of food and the chance to meet other people in the company.

Tang, who bought KOA in 1980, brought along about 20 family members. KOA employees and campers wandered underneath several large tents at the back of the KOA on Garden Avenue in Billings.

“I look at this company, and it’s a wonderful franchise, wonderful people,” Tang said.

A special guest was also on hand. Steve Holcomb is the driver of the USA men’s four-man bobsled that won a gold medal in the Vancouver Olympics earlier this year. KOA was an official sponsor of the team, and Holcomb came partially to say thank you for the support.

“It’s been a great relationship (with KOA) so far,” Holcomb said. “The support there has been excellent.”

But he also got the chance to get back into one of his favorite pastimes — fishing. Before Thursday’s picnic, he fished the Yellowstone River near Columbus and hauled in seven fish, including a quartet of rainbow trout.

“I’m coming off a serious fishing drought, like over the last five years,” Holcomb said. He had been training for the Olympics for the past 12 years and spent the past five as the team’s driver.

Rogers, MacKinnon on NASPD Agenda

Jim Rogers, CEO of Kampgrounds of America Inc. (KOA), and Bob MacKinnin, principal of MacKinnon Campground Management, are among the many speakers listed for the National Association of State Park Directors (NASPD) annual conference Sept. 7-10 in Santa Fe, N. M.

Rogers and MacKinnon are scheduled to speak starting at 8 a.m. on Sept. 9 in a session titled “Fiscal Sustainability: Volunteerism and Private Sector Approaches & Partnerships.”

For a complete look at the schedule of events, click here.

Camping Remains Healthy in Idaho

The recession doesn’t appear to have hurt RV camping in Idaho, with private and state-run campgrounds that offer services to motorhomes reporting rising bookings and robust business.

The Idaho Statesman reports camper registrations at Kampgrounds of America Inc. climbed 7% between May 1 and July 15, compared with the same period last year.

And reservations at state parks are up 15% since July 1, according to the Idaho Department of Parks and Recreation.

Anne Chambers, director of the Idaho RV Campgrounds Association, says “RVers are still out RVing.”

Ron Lundquist, manager of the Boise-Meridian KOA just west of Idaho’s capital city, says his business has been good for several years.

Investors Make New KOA ‘Destination Campground’

When a small group of investors came together to build a campground on property in Yankton, S.D., owned by the National Field Archery Association (NFAA), they decided to make it a first-class facility.

“The group of us decided that, if we were going to do it, we were going to do it nice,” said Dale James, one of the investors. “There are going to be a lot of activities — way more than most campgrounds. You won’t just go to camp there.”

The owners anticipate that the Yankton/Missouri River KOA, located at 807 Bill Baggs Road, will quietly open by the end of this week. A more official opening will occur in mid-August when a couple of archery tournaments will bring an influx of people to the area.

It will have 90 campsites, including pads for campers, four small cabins and six lodges.

The 20-acre site will also include facilities for basketball, sand volleyball, croquet, badminton, miniature golf and horseshoes. Additionally, it will have playground equipment, a swimming pool with a slide, a recreational area for dogs and a jumping pillow that can hold approximately 75 people at once.

Bruce Cull, president of the NFAA, which is an investor in the development, and James could be found bouncing around on the large jumping pillow during a recent muggy afternoon.

“Talk about a cardio exercise!” Cull said as he hopped off the pillow. “I was on there for a minute, and I’m breathing harder than if I had run for 10 miles. It’s crazy.”

Cull said the idea was to make the KOA facility a “destination campground.”

“It’s such a cool project,” he said. “All the things we’re going to have for campers is incredible. We’ve got pretty much everything to make it a real destination.”

In addition to the previously-mentioned amenities, Cull points out that a building at the site will house showers, bathrooms, a convenience store, an arcade room and a video lottery area. A pavilion will also be used to hold activities.

On the NFAA grounds adjacent to the campground, there are four 28-target field archery courses, a trap range, a tennis court, and a pond for fishing.

The project will represent an investment of more than $2 million, Cull said.

“The whole idea is to bring more people to town,” he stated.

James added, “Look at the money these campers are going to spend in town. They’ve got to buy fuel, food and will also spend money on recreational opportunities.”

A manager will live in a lodge on the campground, and it is expected to be open annually from March through December.

Cull believes hunters will be among those who use it during the traditional camping off-season.

“The operation is set up so it can run in harsh winters,” Cull said. “The intent is to be open as long as we can profitably do so. The bottom line right now is to keep our heads above water financially. We’ve got a big investment here.”

KOA Reports Summer Registrations Up 7%

More campers than ever before are visiting Kampgrounds of America parks this summer.

Between May 1 and July 15, KOA saw an increase of more than 7% in camper registrations, compared to the same period in 2009, the Billings, Mont.-based campground chain reported. That news comes on the heels of a record Fourth of July weekend, which saw an 8% growth in camper registrations compared to 2009. In fact, Friday, July 2, was the highest volume of camper registrations in Kampgrounds of America’s 48-year history.

The growth trend isn’t showing any signs of slowing. KOA advanced reservations through the end of September show an 11% growth over the same period in 2009.

“Our campground owners have done a wonderful job taking care of the needs of our campers, as well as investing in their facilities to give campers more options when it comes to food, entertainment and accommodations,” said KOA President Pat Hittmeier. “We’ve been around a long time, but new campers are still discovering that a stay at KOA is a fun, affordable family vacation option.”

There are also now more than 1,200 full-service Lodge accommodations in the KOA system. KOA Lodges come complete with full bathrooms, showers and kitchens. KOA Lodges are bringing camping to a new type of guest that may not have considered camping before.

Arizona Town Council to Vote on KOA Plan

The Chino Valley, Ariz., town council on Thursday (July 22) will consider whether to approve rezoning 17 acres on the municipality’s north side for the construction of a future Kampgrounds of America Inc. (KOA) RV campground.

The council will likely decide if the property should be rezoned from commercial light/agricultural residential 5-acre minimum to commercial heavy, the Daily Courier, Prescott, reported.

The land, owned by Jack Tuls Jr. of JT Properties, sits on the south side of East Road 3-1/2 North, about 400 feet east of Highway 89.

Charlie Arnold of Bright Star Communities is applying for the KOA project, which forms one of three adjacent pieces in the proposed 58-acre High Plains Development. This particular KOA site would contain 32 cabins and 119 RV campsites.

On May 6, planning and zoning commissioners voted unanimously to recommend the rezoning for the KOA to the council. However, because of several written protests from the community, three-fourths of the seven-member council must agree to the rezone for it to move forward.

How KOA Brings the Small-town Touch to its Guests

Chris Mink

Editor’s Note: Chris Mink, manager of the Value Kards Rewards program for Kampgrounds of America Inc., wrote the following story which appears in the current issue of Colloquy, the “voice of the loyalty marketing industry since 1990.”

We like to say that we believe KOA is one of the last small towns in America. Kampgrounds of America is the world’s largest system of open-to-the-public family campgrounds, with small-town atmosphere and camaraderie.

But we realized that our small town had room to grow comfortably. Each year in the U.S. alone, nearly 100 million nights are camped. With 475 locations in nearly every state and Canadian province, KOA accommodates millions of faithful campers, yet receives only a 6% slice of the entire camping night pie.

KOA was founded 48 years ago on the banks of the Yellowstone River in Billings, Montana. For nearly half of the time since then, campers have been able to purchase an annual discount card to save 10% off the cost of camping. Discount cards are pretty much the norm in the camping industry, offered by many camping organizations—and KOA wanted something more, something to set us apart. In March 2008, we added camping rewards points to KOA’s Value Kard Program, renaming it Value Kard Rewards. This made KOA the first camping provider to follow the lead of many airlines and hotel chains.

The new program still provides an immediate 10% discount on daily rates, but it’s the Value Kard Rewards points that are getting the attention of more and more campers. To explain why, join us on a tour of our small-town loyalty principles:

Best-customer recognition. KOA’s Value Kard Rewards points are tied to both the nights stayed at a KOA, and the rate paid for those nights. As guests camp more with us, they can reach Bonus and VIP tier status, which offers accelerated earnings potential. For instance, a camper in the VIP program earns at a 25% bonus level over the base member. And as long as members maintain their VIP status, the membership fee is waived. Combining rewards with recognition at the campground creates win-win. In 2009, KOA campers saved nearly a million dollars in camping fees by belonging to the program.

Getting to know our neighbors. Value Kard Rewards provides us with data variables that allow our campground owners and managers to anticipate and respond to guests’ needs and preferences—the site locations they like, the type of camping equipment they use, and even if they travel with a pet. We can employ that individual knowledge to arrange for quicker check-in, and for personalized service and accommodations at arrival. In addition to enabling the personal touch on site, this information allows us to broaden the camping experience through communications tailored to tenters, RVers, and those who stay in lodges.

Fun. Camping is a lifestyle choice, not just a means of travel. We incorporate pictures and stories of real people having fun in all of our marketing materials. Making the points part of the memories created on the campgrounds helps promote a return stay or a future stay at another KOA down the road. And because camping is a communal activity, we extended the social aspect into the social media world. Today, through sites such as Facebook and KOAKompass.com, we’ve built a community that extends to the digital world. Sharing camping experiences, recommendations, recipes, product reviews, and more, we continue to build memories and emotional ties.

Consolidation of tech. Having developed our proprietary computerized campground operating system called KampSight, we were able to tie individual reservation systems together to bring more value. All records of discounts, point accrual and redemptions are linked, providing an efficient and easily administered program.

Consistency of experience. To smooth customers’ transition to our new program, we retain the discount aspect that was both familiar and widely accepted. In fact, though a physical membership card isn’t needed because of our new technology, we still provide one because some campers want to “show their card.” They take pride in their citizenship in our small town.

Today, we’re seeing the desired shift in increased camper nights among our Value Kard Rewards members. “Stays per household’ are up 9% from the previous year, and “nights stayed” is three times greater than our non-Value Kard Rewards campers. Now that’s a program with “staying power.”

KOA Moves Up List of Top Franchises

Kampgrounds of America, the largest system of open-to-the-public campgrounds in the world, has been ranked 21st in the list of Top 50 Franchises by Franchise Business Review.

Each year, Franchise Business Review interviews franchisees from the top 500 franchising companies in North America. There are more than 75,000 different franchises in the U.S. and Canada. Last year, KOA was 24th on the list.

“It’s gratifying to see that we’ve moved up a few spots,” said Pat Hittmeier, president of Kampgrounds of America Inc, in a news release. “It’s great to be at the top with some of the best brands in the world.”

“Franchisee satisfaction is the most critical factor for any prospective franchisee to consider before investing in any franchise opportunity,” said Eric Stites, president of Franchise Business Review. “Even during challenging economic times, the very best franchise businesses maintain high franchisee satisfaction. This year’s award-winning franchises are in that elite group and represent the very best franchise opportunity investments in the marketplace today.”

Now in its fifth year, the Franchise Business Review awards begin with in depth research on more than 500 franchises that include more than 100,000 franchisees. Other award winners include FastSigns International, Heaven’s Best, Auntie Annie’s Pretzels, Paul Mitchell, Home Instead Senior Care and Computer Troubleshooters.

Franchise Business Review surveys thousands of franchisees to measure satisfaction levels related to their franchise ownership experience. Survey questions cover everything from training and support, system quality issues, franchisor relationship, financial opportunity to overall satisfaction.

“We are confident that we do a good job for our franchisees in all of the measured areas, and then some,” said KOA’s Hittmeier. “It’s gratifying to see that confirmed by an outside source.”

Kampgrounds of America Inc. is the largest system of family campgrounds in North America., with more than 475 locations in 46 states and nine Canadian provinces. The company headquarters is located in Billings, Montana, where it was founded 48 years ago.

KOA’s Jim Rogers Earns Top Scouting Honor

Jim Rogers, CEO and chairman of Kampgrounds of America Inc. (KOA), was recently presented with the prestigious Silver Antelope Award by the National Court of Honor of the Boy Scouts of America, according to a news release.

Rogers, who has led KOA since 2000, is an Eagle Scout who has remained active in Scouting his entire adult life. He currently serves as the president for the Western Region of the Boy Scouts of America. There are 10 Eagle Scouts within two generations of the Rogers family, including all three of Rogers’ sons.

The Silver Antelope Award is presented by the Boy Scouts of America to a registered adult member for outstanding service to youth within one of the four regions of the Boy Scouts of America organization. The award is presented to those who make a significant contribution to the Scouting program at a regional level.

In the Western Region of Boy Scouts of America, Rogers has served as regional president, vice president of finance and was a member of the Nominating Committee. He has also served on the National Executive Committee, National Council Solutions Group Committee and the National Brand Management Support Committee.

Rogers received the Silver Antelope Award May 28 at the Boy Scouts of America National Annual Meeting in Dallas, Texas.

“Our country and our young people need examples of great leaders and community servants like Jim Rogers,” said Tom Fitzgibbon, Western Region Director of the Boy Scouts of America. “Service to others is at the core of what it means to be a Scout, and this award is our way of honoring individuals like Jim who live this principle every day.”

Kampgrounds of America, which sponsored the USA Olympic Bobsled Team during the 2010 Olympics in Vancouver, British Columbia, also sponsored Men’s Bobsled Team Captain and Eagle Scout Stephen Holcomb to attend the Dallas meeting. Holcomb spoke to the group prior to the awards ceremony.

In 2002, Rogers was also honored with the Distinguished Eagle Award by the Boy Scouts of America.

He and his wife, Sandy, live in Reno, Nev. Rogers and his wife will also attend the Boy Scouts of America 100th Anniversary Jamboree in Washington, D.C., where Rogers will serve as a camp leader.

Many Gulf Coast Parks Still Buffeted by Spill

Three months after the BP oil platform exploded in the Gulf of Mexico, some RV park and campground owners say their businesses are beginning to recover while others report summer occupancy rates off as much as 50% as the region continues to combat the perception that oil is washing up on hundreds of miles of beaches.

”We are fortunate; we’ve had very few cancellations,” said Katy Folkertsma, manager of 60-site Pineglen RV Park about three-quarters of a mile off the Gulf in Panama City Beach, Fla. In mid-July, she said, the park was 75% occupied with the third July weekend fully booked.

”People call and ask us and I tell them the beaches are fine,” said Folkertsma. “For every cancellation that I get, I get another person calling for a reservation.”

On the other hand, Judy Hezik, manager Baywood Campground, a 117-site RV resort 1 1/2 miles from the beach in Gulfport, Miss., said the phone hasn’t been ringing like it usually does. ”Business definitely has slowed down a lot — probably 30%,” she said. ”People assume there’s so much oil on our beaches that they don’t even call.”

Hezik said that while the winter season typically is busier than summertime at Baywood, “we usually get a flow of RVers, but that’s not happening right now. We need the negative publicity to stop.”

Kampgrounds of America Inc. (KOA) reports that its 50 company-owned and franchised campgrounds in Louisiana, Mississippi, Alabama and Florida and Texas were down 1% through the middle of July compared to 2009. However, over the Independence Day holiday, those same facilities reported a 14% dropoff vs. the holiday weekend a year ago. ”We are complaining like everybody down there that the media hasn’t been very kind,” said Mike Gast, vice president of communications for KOA. ”People just aren’t taking the chance.”

Through June, by the same token, business is down 50% for the season at Perdido RV Resort in Perdido Key, Fla., an island on the Intercoastal Waterway 10 blocks from the Gulf in the Florida Panhandle.

But that began to change in July, according to owner Julian McQueen. ”It seems to be settling down a little bit,” McQueen said. ”We’ve seen our numbers come back a little bit in July. I don’t know why. Maybe people are taking a more reasonable look at this and whether the Gulf and the beaches having oil on them is an impactful as the media is portraying.”

After attending a meeting with Kenneth Feinstein, who is in charge of distributing $20 billion in aid to Gulf Coast residents and businesses from a special, independent fund set up by BP, McQueen said he is confident that campground owners applying for relief will receive compensation. “He made it clear he’s not working for BP or the (Obama) administration, but that he’s working for the Gulf,” McQueen said.

Indeed, Bobby Cornwell, executive director of the Florida and Alabama affiliates of the National Association of RV Parks and Campgrounds, said he has heard anecdotally that some campground owners already have begun receiving checks.

”I don’t know the exact numbers, but there are a few parks that have received some responses and some have received payment,” Cornwell said. ”It’s not been enough to cover losses, however.”

Cornwell said occupancy is down 50% at Camping on the Gulf in Destin, Fla., one of the few Florida parks with campsites right on the beach. ”The fact is,” Cornwell said, ”there is no oil on those beaches.”

“The media talks about the beaches as if everything is covered with oil and that’s not the case,” said Camping on the Gulf General Manager Pat O’Neill, who reported in a news release that negative national publicity is costing the park more than $3,000 a day in lost reservations.

The campground is trying to counter that perception with daily videos on its website (www.campgulf.com) that prove that the Gulf waters and its beach are clean.

Government agencies are taking the same tack.

While acknowledging scattered problems with oil along its 32 miles of beaches, Gulf Shores and Orange Beach Tourism have set up a special website (www.thebeachfacts.com) with a daily video reporting on beach conditions that is also posted on YouTube.

”The thought behind that was to provide accurate, verified information for our guests to deal with other than the noise from the media,” said Kim Chapman, the agency’s public relations manager.

In Mississippi, with 62 miles of beaches stretching through three counties, the Mississippi Development Authority is using $15 million received directly from BP to buy radio and TV spots aimed at vacationers in the southeastern states. ”We want people to know that our beaches are not covered with tar balls,” said Jennifer Spann, the authority’s public relations manager. The media perception is hurting us. Some parts of our beaches have been closed at times. But most of the beaches are open, and we are still encouraging people to come on down because there is still plenty to do.”

Mark Anderson, owner of 101-site Poche Plantation RV Resort on the banks of the Mississippi River in Convent, La., says the oil spill has hurt business more than he anticipated. ”We don’t have any oil problems, but business is off 30% to 35%,” he said. ”We don’t have any oil in our face, but we have oil in the minds of people coming down this way.

”The question I get a lot is ‘if I can smell the oil?’ I tell them ‘no.’ People think that if they come down here, they are going to get oil on their rigs (RVs).”

Cornwell, for his part, said the owner of Anchors Aweigh in Foley, Ala., reported that business is off by about 50% for the season. ”A lot of their business is from people going deep sea fishing and they are usually full this time of year,” Cornwell said. ” People who live nearby are coming as usual, but most of the campers who are coming from up north are assuming the worst and don’t want to take the chance. The area is having a horrible summer. Local restaurants have closed down and many of the condos are empty.”

In Texas, Gulf Coast campgrounds are reporting that business hasn’t been affected by the oil spill, according to Brian Schaeffer, executive director of the Texas Association of Campground Owners (TACO).

He reported that tar balls that showed up on some Texas beaches in mid-July didn’t come directly from the oil spill. ”The Fourth of July was fantastic,” Schaeffer said. ”Texas campgrounds that rely on water tourism are doing great. They seem at this point not to be concerned.”

Next Page »