Kampgrounds of America, Inc. (KOA) shared continued revenue growth in its Q3 Business Report. When comparing the same period in a record-setting 2021, revenue improved by 2.1 percent on a same-store basis. Looking ahead, advanced deposits on future business are up 4.5 percent.
The bulk of KOA’s business, short-term leisure travel, posted a 1.5 percent increase in same-store registration revenue over the first three quarters of last year. Conversely, occupancy decreased for the quarter by 6.6 percent as the business adjusted to a new level established in 2021.
Short-term occupancy for the period was 29 percent and 11.5 percent improved over the same time frame in 2020 and 2019, respectively.
“Our business saw an exponential jump over the past two years. Rather than returning to pre-pandemic levels of occupancy, a new higher bar has been set.” said Toby O’Rourke, president and CEO of Kampgrounds of America, Inc. “Legions of new campers were drawn to the outdoors, and that interest is poised to continue. Many of those who started camping over the past two years report that they plan to continue, particularly in the current economic climate, as camping is largely viewed as an affordable vacation option. With deposits on future business sitting comfortably above this time last year, we are very optimistic about what lies ahead.”
Looking toward long-term business, KOA posted a nearly 6 percent increase in registration revenue. Occupancy fell slightly and finished the quarter 4.2 percent behind 2021.
In the third quarter of 2022, KOA added two franchise locations to the campground system in Colorado and Alaska. The addition of Fairbanks/Chena River KOA brings Alaska’s state total to four.
“Alaska has made a splash growing from zero locations to four in less than five years,” said Ann Emerson, chief operating officer of Kampgrounds of America Inc.’s franchise system. “It’s encouraging to grow new markets where we can introduce camping audiences to the service and hospitality of KOA.”
During the third quarter, KOA added a California campground to the company’s campground portfolio. The most recent addition is Bakersfield RV Resort in Bakersfield, CA. This addition brings the 2022 acquisition total to ten.
“Our acquisition strategy continues to be aggressive,” said Darin Uselman, chief operating officer of owned and operated assets of KOA (OAK). “This not only makes financial sense, but it also further solidifies KOA’s leadership and position in the growing campground industry.”
Kampgrounds of America is celebrating its 60th anniversary. The company is divided into two brands: KOA and Terramor Outdoor Resorts. KOA is the “largest system of privately-owned, open-to-the-public campgrounds, consisting of over 525 franchised and owned campgrounds”. In 2020, Terramor Outdoor Resorts, a glamping venture, opened its flagship property in Bar Harbor, ME.
Photo courtesy Valdez KOA Journey
