RV Park Business Overview

RV parks serve as dedicated facilities for travelers and long-term residents with recreational vehicles, offering spaces equipped with utility connections and amenities. These businesses provide various levels of service, from basic overnight parking spots to full-featured resorts with extensive facilities.

Owners typically operate their parks year-round, though many see higher occupancy during warmer months or in regions with favorable winter climates. The layout of RV parks usually includes paved or gravel spaces arranged to maximize land usage while maintaining privacy between sites, along with common areas and utility infrastructure to support guest needs.

Related: Checklist To Start A Business

How Do RV Parks Make Money?

RV parks operate on a space rental business model where income primarily comes from charging fees for parking spots and utility connections. The success of these businesses often depends on location, quality of facilities, and ability to maintain high occupancy rates throughout their operating season. While daily rates vary significantly based on market conditions and amenities offered, the steady nature of space rental income provides a foundation for sustainable operations.

The common ways businesses in this industry make money can include:

• Site Rentals: The primary revenue source comes from renting out spaces for RVs. Fees vary based on the location, size of the space, and duration of the stay. Full-service sites with hookups for water, electricity, and sewage typically command higher prices.
• Utility Fees: Some parks charge additional fees for electricity, water, and Wi-Fi usage, especially for long-term residents.
• Amenity Access: RV parks often charge extra for access to amenities such as swimming pools, laundry facilities, or recreational areas. These fees enhance the guest experience while adding income.
• Retail and Supply Sales: Many parks sell camping supplies, food, and beverages on-site. These sales provide convenience for guests and generate supplementary revenue.
• Event Hosting: Parks may offer spaces for group events like family reunions, rallies, or weddings.
• Cabin or Tent Rentals: Some parks diversify their offerings by providing cabins or tent sites for guests who do not own RVs.
• Membership and Subscription Plans: Businesses with membership models earn recurring revenue from annual or monthly fees.

Industry Statistics

RV parks and campgrounds, categorized under NAICS code 721211 – Recreational Vehicle Parks & Recreational Camps, provide accommodations and amenities for travelers with recreational vehicles and campers.

Here are some statistics about the industry.

RV Park Industry Size & Growth: The RV park and campground industry generated $10.7 billion in revenue last year. The industry has shown steady growth, with an average annual increase of 3.1% over the previous five years. Growth projections remain positive due to increased interest in outdoor recreation and rising demand for upscale camping facilities. (IBISWorld)

Number of RV Parks: There are 15,276 RV parks and campground businesses operating across various locations. The industry includes both independent operators and larger companies, with the three biggest operators – Equity Lifestyle Properties, Target Hospitality Corp, and Sun Communities – controlling a portion of the market. Equity Lifestyle Properties leads with over 200 locations throughout multiple locations. (IBISWorld)

RV Park Profit Margin: The average profit margin for RV parks ranges between 20% and 30%, with high-performing locations reaching the upper end of this range. Well-established parks with premium amenities and high occupancy rates typically achieve better profitability. (Campground Mavericks)

Costs To Start an RV Park

Starting an RV Park can range between $500,000 to $2.5 million depending on the size of the property, location, and included amenities.

Here are some of the main costs to consider when starting an RV Park:

Land Purchase or Lease: Property costs can range from $250,000 to $1.5 million. This varies based on acreage, location, and existing infrastructure. For leasing, initial costs include the first and last month’s rent plus a security deposit, along with any needed site improvements.

Site Development: Setting up utilities and infrastructure like water, electricity, and sewage connections for each RV spot ranges from $150,000 to $500,000. This includes grading the land, creating access roads, and installing necessary hookups.

Facilities and Buildings: Construction of bathhouses, laundry facilities, and an office building can cost between $75,000 to $250,000. This includes plumbing fixtures, washing machines, and basic office equipment.

Permits and Engineering: Environmental studies, zoning permits, and engineering plans often cost between $25,000 to $100,000. This covers necessary documentation and professional services to meet local regulations.

These estimates represent general ranges, and actual costs will vary based on location and business size.