Comments on: Yield Optimization for RV parks and Campgrounds http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/ Professional Campground Management Operations Fri, 19 Feb 2010 11:18:41 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: rv discounts http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/comment-page-1/#comment-111 rv discounts Fri, 19 Feb 2010 11:18:41 +0000 http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/#comment-111 the topic of yield optimization is quite new to me, but you simplifies it and i can now understand it fully. At the start of the article i was at the side of different rates with different customers but the reason which u have given for rv parks and why this system cannot be applied to rv parks industry is quite good and followable. so at the end, i reached the point, that not all the principles can be same for all the business and people should think way too now. the topic of yield optimization is quite new to me, but you simplifies it and i can now understand it fully. At the start of the article i was at the side of different rates with different customers but the reason which u have given for rv parks and why this system cannot be applied to rv parks industry is quite good and followable. so at the end, i reached the point, that not all the principles can be same for all the business and people should think way too now.

]]> By: PeterK http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/comment-page-1/#comment-11 PeterK Thu, 22 May 2008 20:21:22 +0000 http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/#comment-11 Thanks for your comments and your time writing them. Thanks for your comments and your time writing them.

]]> By: David Gorin http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/comment-page-1/#comment-10 David Gorin Mon, 28 Apr 2008 02:59:46 +0000 http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/#comment-10 Peter: Glad you're keeping the discussion going on yield management. As the industry changes and as more and more corporate owners appear and as brands proliferate, the relationship between camper and campground will most likely change to more and more reflect other industry groups. Yield management, on line reservations, data mining and other technology based business management techniques are likely to take hold in the park industry. Peter: Glad you’re keeping the discussion going on yield management. As the industry changes and as more and more corporate owners appear and as brands proliferate, the relationship between camper and campground will most likely change to more and more reflect other industry groups. Yield management, on line reservations, data mining and other technology based business management techniques are likely to take hold in the park industry.

]]> By: Eli White http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/comment-page-1/#comment-4 Eli White Mon, 21 Apr 2008 23:02:35 +0000 http://www.campgroundmanager.com/blog/2008/04/21/yield-optimization-for-rv-parks-and-campgrounds/#comment-4 I agree with your thoughts for the most part. Having been in the hotel business for 35 years and now responsible for the development of an RV Resort, pricing is a critical component to both forms of hospitality. Yield management has become commonplace in the hotel industry and is just beginning to filter over into the RV world. Like hotels, if you provide a range of rates for your sites and adjust for seasonality and day of the week, a fair pricing model can be imposed without jeopardizing the trust you reference with your camping guest. Pricing within a range of rates can allow an owner to layer the evenings return by rewarding those who book well in advance. This helps the management team with their forecasting, staffing, purchasing and a host of other actions needed to function properly. You can also use the layered approach with groups wishing to reserve a block of sites for a rally. Once you reach different levels of occupancy, rates will increase within the established range of rates helping to offset the discounts required to capture the rally group at a discounted rate. Physical charateristics of the park can also dicate the pricing points. Large pull-thrus versus shorter back-ins, and premium waterfront locations versus interior lots that may be slightly more narrow than the premiums. Yielding can also allow the more expensive sites like premium sites to be utilized by offering upgrades to the better sites for the lower prices when standard sites are filling up and the present market is not willing to pay the premium price. By upgrading you not only capture additional revenue but you make a good impression with the guest. Just like a first class upgrade on an airplane for coach fare. So yielding works in both directions. Gambling that a front desk clerk in a hotel will give in to your late night pleading sometimes works but I wouldn't recommend that practice in highly sought after locations. You just may find yourself back in the car looking for the next best location. We like to think that our range of rates allows us to discount early within the stated range and as the sites fill up, we simply move up the range until we reach our maximum range rate or the park is filled, whichever occurs first. The blended rate will then give us the desired results for the evening. No doubt it becomes a balancing act but with practice, the campground will capture the needed revenue in order to remain in business and not be forced to sell out to developers looking to tear down the facility for other purposes or the resort becomes private by selling off the lots. More and more demands are being made by RV'ers to improve campgrounds and add services. We can do that but we must capture the appropriate revenue in order to remain profitable. For those looking for budget travel opportunities with fewer frills, the state parks are still a viable option. I agree with your thoughts for the most part. Having been in the hotel business for 35 years and now responsible for the development of an RV Resort, pricing is a critical component to both forms of hospitality. Yield management has become commonplace in the hotel industry and is just beginning to filter over into the RV world. Like hotels, if you provide a range of rates for your sites and adjust for seasonality and day of the week, a fair pricing model can be imposed without jeopardizing the trust you reference with your camping guest.

Pricing within a range of rates can allow an owner to layer the evenings return by rewarding those who book well in advance. This helps the management team with their forecasting, staffing, purchasing and a host of other actions needed to function properly. You can also use the layered approach with groups wishing to reserve a block of sites for a rally. Once you reach different levels of occupancy, rates will increase within the established range of rates helping to offset the discounts required to capture the rally group at a discounted rate.

Physical charateristics of the park can also dicate the pricing points. Large pull-thrus versus shorter back-ins, and premium waterfront locations versus interior lots that may be slightly more narrow than the premiums. Yielding can also allow the more expensive sites like premium sites to be utilized by offering upgrades to the better sites for the lower prices when standard sites are filling up and the present market is not willing to pay the premium price. By upgrading you not only capture additional revenue but you make a good impression with the guest. Just like a first class upgrade on an airplane for coach fare. So yielding works in both directions.

Gambling that a front desk clerk in a hotel will give in to your late night pleading sometimes works but I wouldn’t recommend that practice in highly sought after locations. You just may find yourself back in the car looking for the next best location. We like to think that our range of rates allows us to discount early within the stated range and as the sites fill up, we simply move up the range until we reach our maximum range rate or the park is filled, whichever occurs first. The blended rate will then give us the desired results for the evening.

No doubt it becomes a balancing act but with practice, the campground will capture the needed revenue in order to remain in business and not be forced to sell out to developers looking to tear down the facility for other purposes or the resort becomes private by selling off the lots. More and more demands are being made by RV’ers to improve campgrounds and add services. We can do that but we must capture the appropriate revenue in order to remain profitable. For those looking for budget travel opportunities with fewer frills, the state parks are still a viable option.

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