Campground Business Overview

A campground business creates spaces for outdoor enthusiasts to stay overnight and enjoy nature-based experiences. These properties provide various accommodation options, from basic tent camping spots to full-service RV sites, and increasingly offer premium amenities to attract a broader range of customers. The industry has grown beyond simple camping spots to include diverse offerings that appeal to both traditional outdoor enthusiasts and those seeking more comfortable outdoor experiences.

Campgrounds typically operate on large parcels of land with designated areas for different types of outdoor stays. Most properties maintain shared facilities like bathrooms, showers, and laundry rooms. Many also include gathering spaces such as picnic areas, recreation halls, and playgrounds. The more developed locations might feature swimming pools, sports courts, or organized activity programs.

The campground industry includes several common business models:

• Traditional Campground: A property that offers basic tent camping spots with shared bathrooms and simple amenities. Revenue comes from nightly fees, firewood sales, and small convenience store purchases.
• RV Park: A location designed primarily for recreational vehicles with full hookups (water, electricity, sewage). Income stems from both short-term and long-term site rentals, plus utility fees.
• Mixed-Use Facility: A combination of tent sites and RV spaces, often including cabin rentals. Money is generated through varied accommodation fees, equipment rentals, and activity charges.
• Destination Campground: A large property with extensive recreational facilities like swimming pools, hiking trails, and organized activities. Revenue comes from higher-priced accommodations, activity fees, and membership programs.
• Luxury Camping (Glamping) Site: Upscale outdoor accommodations featuring pre-set canvas tents, yurts, or unique structures with premium amenities. These properties earn income through premium pricing and additional services.

How Do Campgrounds Make Money?

Campground businesses create multiple income streams to maintain profitability throughout the year. The primary source of revenue comes from accommodation fees, which vary based on the type of site and season. During peak months, many campgrounds implement higher rates to maximize earnings during increased demand periods.

Beyond basic site rentals, campgrounds generate substantial additional revenue through amenity fees and extra services. Many locations charge for utility hookups, including electricity, water, and WiFi access. Equipment rentals, such as boats, bikes, or camping gear, provide another steady income source. On-site stores often stock camping supplies, groceries, and firewood at premium prices for customer convenience.

Some campgrounds boost their income through membership programs or seasonal passes, creating reliable recurring revenue. Special events like festivals, weddings, or group gatherings can generate significant supplemental income during slower periods. Many locations also partner with local attractions or tour operators to earn commissions from activity bookings.

Industry Statistics

The campground and RV park industry operates under NAICS code 72121 – RV Parks and Recreational Camps. Here are some notable figures about this growing outdoor accommodation sector.

Campground Industry Size & Growth: The campground and RV park industry has reached $10.7 billion in annual revenue. Over the past five years, the industry has seen steady growth with an average annual increase of 3.1%. The rise of remote work and increased interest in outdoor activities have supported this expansion. Looking ahead, the industry is projected to continue growing as consumers maintain their interest in outdoor experiences and domestic travel. However, factors like gas prices and overall economic conditions may influence the rate of growth. (IBISWorld)

Number of Campgrounds: Currently, 15,276 campgrounds and RV parks operate across the country. The industry includes a mix of independent operators and larger companies. Among the major players, Equity Lifestyle Properties leads with the highest market share, followed by Target Hospitality Corp and Sun Communities Inc. These three companies combined control a significant portion of the market through their extensive networks of properties. (IBISWorld)

Campground Average Profit Margin: The campground industry maintains healthy profit margins averaging 32%. (IRS)

States with Most Campgrounds: Popular outdoor recreation states tend to have the highest concentration of campground businesses. California, Florida, and Texas lead in the number of establishments, reflecting both their large populations and abundant natural attractions. The Northeast and Mountain regions also maintain strong numbers of campground operations, particularly in areas near national parks and scenic destinations. (U.S. Census Bureau)

Also See: Ideas for Naming a Campground

Costs To Start a Campground

Starting a campground business can be a significant financial undertaking, with initial investments typically ranging from $150,000 to $750,000, depending on the location, size, and specific amenities planned. This wide range reflects the diverse nature of campground developments, from modest local sites to more extensive recreational destinations.

Here are some of the main costs to consider when starting this type of business.

Land Acquisition: Purchasing suitable land for a campground could range from $50,000 to $250,000. The cost will vary dramatically based on location, terrain, and proximity to attractive natural features or tourist destinations. Rural or remote areas might offer more affordable land, while locations near national parks or popular recreational zones could significantly increase the initial investment.

Site Development: Preparing the land for camping involves extensive groundwork and infrastructure creation, which could cost between $30,000 to $150,000. This includes clearing and grading the property, creating individual camping sites, establishing roads and pathways, and installing necessary utility connections. The complexity of the terrain and the number of sites planned will directly impact the development costs.

Utility Infrastructure: Installing water, electricity, and sewage systems could range from $25,000 to $100,000. This may involve drilling wells, setting up septic systems, creating electrical hookups, and ensuring reliable water access for campers. The geological characteristics of the land and local regulatory requirements can influence these infrastructure costs.

Amenities and Facilities: Constructing essential facilities like restrooms, shower buildings, a registration office, and potential additional features could cost between $40,000 and $150,000. The quality and extent of these amenities will depend on the target market and the camping experience offered.

Equipment and Initial Inventory: Purchasing initial equipment could range from $10,000 to $50,000. This might include everything from computer systems for booking to maintenance vehicles and basic camping-related inventory for a potential on-site store.

These estimates represent rough financial projections for establishing a campground business. The actual costs will vary based on numerous factors specific to individual projects and local market conditions.