Kampgrounds of America, Inc. Reports Third Quarter Revenue Growth
Kampgrounds of America, Inc.’s Q3 Business Report shares quarterly growth, occupancy normalization following record-breaking 2021
BILLINGS, Mont. (Oct. 20, 2022) – Kampgrounds of America, Inc. (KOA) shares continued revenue growth in its Q3 Business Report. Comparing the same period in a record-setting 2021, revenue improved by 2.1% on a same-store basis. Looking ahead, advanced deposits on future business are up 4.5%.
Short-Term and Long-Term Performance Analysis
The bulk of KOA’s business, short-term leisure travel, posts a 1.5% increase in same-store registration revenue over the first three quarters of last year. Conversely, occupancy decreased for the quarter by 6.6% as business adjusts to a new level established in 2021. Short-term occupancy for the period was 29% and 11.5% 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, Kampgrounds of America, Inc. posted a nearly 6% increase in registration revenue. Occupancy fell slightly and finished the quarter 4.2% behind 2021.
Franchise System Adds Campgrounds, Recognized as Most Profitable Franchise
In the third quarter of 2022, Kampgrounds of America, Inc. added two franchise locations to the campground system. The new franchise KOA campgrounds are located in Colorado and Alaska. A growing state for Kampgrounds of America, Inc., 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.”
Kampgrounds of America, Inc. ended the third quarter being recognized as one of Franchise Business Review’s Most Profitable Franchises. One of 50 to be included on the list, data was analyzed from over 30,000 franchise owners representing more than 300 brands.
KOA’s Corporate Portfolio Expands by One
During the third quarter, Kampgrounds of America, Inc. added a new California campground to the company’s owned campground portfolio. The most recent addition is Bakersfield RV Resort in Bakersfield, Calif. This addition brings the 2022 acquisition total to 10.
“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.”
About Kampgrounds of America:
Kampgrounds of America, currently celebrating its 60th year of operations, is the definitive leader in outdoor hospitality. United under the mission of “connecting people to the outdoors and each other” the company consists of two unique brands: KOA and Terramor Outdoor Resorts. KOA, the world’s largest system of privately-owned, open to the public campgrounds, consists of over 525 franchised and owned campgrounds. With unrivaled brand visibility, KOA also offers campground owners and operators unparalleled support in campground education, design, recruitment, marketing and technology. Terramor Outdoor Resorts, a glamping venture, opened its first flagship property in Bar Harbor, Maine in 2020. Literally meaning ‘Love of Land,” the brand focuses on delivering a refined and upscale outdoor experience. For more information, visit KOA.com and TerramorOutdoorResort.com.