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BUD SURLES' CONSULTING GROUP NEWSLETTER
Greetings! Welcome to the first edition of the Bud Surles' Consulting Group Newsletter. We hope that you will find the company as well as industry information and updates helpful as you begin or continue your journey as a resort owner or member of the industry. |
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BUD SURLES' CONSULTING GROUP MOVES HEADQUARTERS
Bud Surles' Consulting Group is proud to announce the relocation of its headquarters to the Teton Valley in Victor, Idaho. This is both a practical and sentimental move because of the national nature of the business and it was born in Jackson, Wyoming just a few miles away. Surles said, "The new location will be more reflective of the national nature of the business and the resort atmosphere of the area is more reflective of the type of business we are." Surles' business will not be affected by this move, as he currently has projects and developments across the country. Bud will continue to travel and personally deliver the same quality of service to all clients. In addition, the company will continue to have offices in Colorado and Texas. |
RV INDUSTRY REPORT CARD: UPS AND DOWNS
September 13, 2010
By RV Business
The future is a generally positive, albeit a mixed bag for the RV industry, the Goshen (Ind.) News reported today.
A series of recent studies, reports and projections from multiple agencies have cast that future in a hopeful but realistic light.
Industry business indicators from the Recreation Vehicle Industry Association (RVIA) updated at the end of July projected continued growth in shipments. They also suggested recovery would be slower than what occurred following previous recessions, a hypothesis it explained as a lag in sales due to "lingering effects on the ability of consumers to purchase RVs."
"However, the desire to own RVs is as strong as ever, with basic demand rooted in family values, the enduring appeal of the natural environment, and people's desire to instill in the next generation their cherished tradition," the report said.
In fact, RV ownership has reached record levels according to the RVIA, which estimates 8.3 million American households now own an RV. That number is an increase of 16% since 2001 and 64% since 1980.
Camping's ups, downs
In the results of a study done in partnership with The Coleman Co., The Outdoor Foundation reported both ups and downs in general camping. Those results, titled "Special Report on Camping 2010," noted that while camping participation increased from 42.4 million in 2008 to 44 million in 2009, the average camper only went camping 13.2 days in the latter year, down from a 14.1 day average in 2008.
According to the report, RV camping dropped from 16.9 million people in 2006 to 16.2 million in 2007, but surged to 17.4 million by 2009.
In comparison, backyard and car camping (defined as camping within a quarter mile of the camper's vehicle or home) dropped from 35.6 million in 2006 to 31.4 million in 2007, rebounding only to 34.3 million by 2009.
Between 2006 and 2009, RV campers used public campsites for 62.3% of the time, private sites 32.1% of the time, event sites 3.4% of the time and backyard sites 2.2% of the time.
During that three-year span, the median age of all campers 6 years of age and older climbed from 29 to 33. In a heartening trend, 87% of all campers reported they planned to spend more time participating in outdoor activities in 2010.
A slow end to 2010
Another release from the RVIA written by University of Michigan's Richard Curtin, published in the fall issue of Roadsigns, predicted a hiccup in shipments beginning in the final months of 2010.
Curtin suggested total shipments would reach 239,000 in 2010, slowing in the second half of the year and recovering by the end of 2011, when he estimated shipments would reach 259,600.
That rebounding is the reversal of a declining trend in RV shipments that began after 2006, when 404,600 units were shipped. The following years saw shipment levels drop to 353,400 in 2007, 237,000 in 2008 and only 165,700 in 2009. Total shipments in 2010 had already reached 155,800 by the end of July.
"RV sales face continued challenges from the slowdown in prospects for economic growth," Curtin said. "Uncertainty about future taxes, depressed home values and tight credit conditions will restrict motorhome sales, and lackluster income growth and high unemployment will limit gains in folding camping trailers and truck camper sales."
Curtin argued that the industry's best way forward was not by downsizing, but rightsizing. He described rightsizing as "delivering the optimal mix of size, convenience and features to meet the new constraints facing consumers."
"While the challenges in developing new products will be as great as the economic hurdles now facing the industry, rightsized RVs will reap the long-term payoff from consumers," Curtin said.
$8.2 billion industry
The most recent Travel Trailer and Camper Manufacturing Industry Report from Supplier Relations U.S. LLC, reported the RV industry's revenue for 2009 was approximately $8.2 billion, with $390.8 million in imports from 45 countries and $1.4 billion worth of exports to 160 countries, calculating total domestic demand for the industry at $7.2 billion. |
ARVC: U.S. CAMPGROUND BUSINESS STABLE September 1, 2010
By Woodall's Campground Management
.Year-to-date occupancies and revenues at campgrounds, RV parks and resorts through Labor Day weekend were generally consistent with last year's figures, according to campground industry officials.
"Private park operators are generally pleased with their performance this year," said Linda Profaizer, president and CEO of the National Association of RV Parks and Campgrounds (ARVC), the Larkspur, Cole-based trade association for the private campground industry.
She added in a news release that parks that have invested in rental accommodations, such as park model cabins and cottags, have done particulary well.
The biggest exception, however, were parks along the Gulf Coast, many of which lost considerable summer business as a result of the BP oil spill and related media coverage.
Billings, Mont.-based Kampgrounds of America Inc. (KOA), the nation's largest campground chain with roughly 475 parks, said its year-to-date occupancies through Labor Day weekend were down 0.7%, while revunes rose 2.7%, according to Mike Gast, KOA's Vice President of Communications.
The slight occupancy decline was largely due to weaker business levels last winter, while summer occupancies actually outpaced last summer's figures by 2.5%, Gast said. He added that revenues for the company's park model cabins and cottages, which KOA markets as "Kamping Lodges," were up 27% over last year's figues, which reflects both rising consumr demand for rental accommodations in campgrounds as well as a larger rental inventory.
Indeed, KOA and other campground chains have increasingly invested in park model cabins and other rental accommodations in recent years.
Milford, Ohio-based Leisure Systems Inc. (LSI), which franchises Yogi Bear's Jellystone Park Camp-Resorts, saw its year-to-date occupancies through August increase by 4%, while revenues grew by 3%, said company Vice President Dean Crawford. Demand for cabins and park models, however, grew by 13%, also reflecting increased demand and an increased inventory of units, he said.
Meanwhile, Equity LifeStyle Properties (ELS), a Chicago-based Real Estate Investment Trust (REIT) whose holdings include RV parks and resorts, said occupancies and revenues for its core RV properties were up 2.3% and 3.1% respectively, through July, according to Ellen Kelleher, ELS's executive vice president of property management.
Kelleher added that while occupancies for transient or traveling RVers fell by 3.3% during the period, revenues were up 3.3%. ELS also reported gains in seasonal and annual customers, up 15.3% and 2.1%, respectively, while revenues increased b y 3.9% and 4.9%. The annual fgures include occupancies and revenues from consumers who own park models at ELS parks, Kelleher said.
ELS also reported an 8.5% decline in park model rental occupancies through July, but this was because the company wound up selling many of its units to consumers who wanted to stay for extended periods of time at ELS resorts.
Across the country, several park operators and industry officials reported an exceptional summer camping season.
"We are showing an increse of 6% in business for 2010. This is our actual increase in site nights after subtracting for our annual rate increases, " said David L. Berg, who owns Red Apple Campground in Kennebunkport, Maine, in addition to serving as ARVC chairman.
Berg, whose park is affiliated with the Best Parks in America network, attributed much of the increase at his park to an unusually hot and dry summer in Maine. Berg also said many campers are taking more frequent trips, but for shorter periods of time. "I find folks making reservations at the last minute, or trying to get in when we often are sold out. Also they are are not staying for week-long stays, but rather doing three- and four-day mini vacations and are getting away more often."
Berg also said he has seen a large influx of tent campers this year, which he attributes to the economy. "I feel this is a win-win situation for all," Berg said. "Customers get a reasonable priced vacation and we as an industry get new customers, who if they get the experience they are looking for, they will upgrade in time to a popup or RV of some sort down the road. This is an exmple of finding the silver lining in the tough times we are all in economically."
But tent camping is also influenced by weather patterns.
KOA, for example, saw tent camping decline by 1.3% at its parks nationwide, Gast said. "Weather nationwide is probably the primary driver of that," he said. "Inventory (tent sites) has been relatively stable for years."
Other parks also saw significant business gains this year:
- Misty River Cabins & RV Resort LLC, a Best Parks in America affiliate in Walland, Tenn., saw its year-to-date business grow by 17%, according to park owner Jimmy Felton.
- Castaways RV Resort and Campground in Berlin, Md. also saw double-digit growth during the summer season, with a 4% increase in business year-to-date, according to Kathleen Morris, the park's general manager. Morris attributed the increased business in part to the warm dry summer on the East Coast.
- Crossroads RV Park in Mount Pleasant, Iowa, saw a 19% increase in year-to-date occuancies, said park owner Jeff Krug, who also werves as president of the Iowa Association of RV Parks and Campgrounds. Krug attributed the increase in part to the relative newness of his three-year-old overnight park, which more and moe campers are discovering.
- In California, Ron and Sheryl Culp of Green Acres RV Park in Redding said their year-to-date business was down 2.7% from last year, although their summer business was up 4.3% from a year ago.
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FEATURED RESORT: TIGER CREEK RESORT, TYLER, TEXAS
There are many resorts in Texas, but how many offer an up close and personal experience with wild tigers? Bud Surles' Signature Resorts is proud to announce a completed master plan for Tiger Creek Resort, located in Tyler Texas.
Tiger Creek Resort is an enterprise developed in conjunction with the Tiger Creek Wildlife Refuge, a non-profit organization in tiger conservation, education, big cat rescue and rehabilitation. The new resort will sell RV memberships and cottage timeshares, rent RV sites and cottages, and rent event facilities at the resort. Amenities include a swimming pool, a small lake and dock, a camper service building with a gift shop, a playground, and two outdoor pavilions. "I have had the privilege of working with many unique ideas in my career, but this one stands to be one of the most exciting," said Bud Surles, reminiscing his 30 years of park development and design.
Brian and Lisa Werner, owners of Tiger Creek Resort, are well respected in the business community, and the local community of Tyler, Texas. Brian Werner has experienced substantial success in the start-up of several organizations and Lisa Werner brings a wealth of marketing experience that will only enhance their combined ability to succeed in this new venture. "This development is really about bringing people and animals together through a nature based tourist attraction that also provides sustainability for the big cats of Tiger Creek Wildlife Refuge. Basically we plan to offer a Living Resort ™ with an Exotic Experience ™" said Brian Werner.
Tiger Creek Resort is differentiated from other RV resorts in the industry by offering a serene and relaxing getaway where nature and the environment are respected, and a unique experience that will attract guests. Visitors to Tiger Creek Resort will have many options in the Greater Tyler area for entertainment, but can experience a unique vacation, never leaving the resort. Guests will be interested in learning more about or even just experiencing the beautiful big cats at Tiger Creek Wildlife Refuge - something that no other resort in Texas offers. |
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SITE EVALUATION Considering a new resort? A re-model or addition to your current resort? Call today for a no-cost site evaluation via phone. If interested, you can schedule a more comprehensive site evaluation where Bud will personally examine the project and its viability.
Our Price:$0
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Bud Surles' Consulting Group provides planning, design and development services for visionary land owners and developers desiring first class utilization of their land. With over 30 years experience, Bud has won national recognition for his management, design, development and leadership accomplishments and offers knowledge and expertise in developing resorts across the nation. Check out our website at www.budsurles.com for more information.
Sincerely,
Amie Mersmann Bud Surles Consulting Group |
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