MC Fireside Chats - December 4th, 2024

MC Fireside Chats

The December 4, 2024, episode of MC Fireside Chats explored the challenges and opportunities facing the outdoor hospitality industry as it prepares for 2025. Hosted by Brian Searl, the episode featured insights from Scott Bahr, Sandy Ellingson, and Mike Harrison, who collectively emphasized the importance of adapting to shifting consumer behaviors and market conditions. The conversation highlighted key trends, including the decline of traditional camping formats and the growing popularity of alternatives such as glamping and car camping. These shifts underscore the need for campground operators to rethink their strategies and embrace innovation. Scott Bahr opened the discussion with a deep dive into the data, revealing a consistent decline in traditional RVing and camping interest over the past two years. While some markets remain stable, the overall outlook for 2025 suggests a continued downturn. Bahr highlighted how economic factors such as inflation and interest rates, combined with an oversupply of parks, have amplified the challenges. He urged park owners to analyze consumer trends closely and adapt their offerings to align with changing preferences. Mike Harrison provided additional insights into the economic pressures facing the industry. He pointed out that developers and operators who overpaid for properties during the pandemic-driven boom are now grappling with underperformance. Harrison stressed the importance of realism and adaptability, particularly for operators looking to succeed in a more competitive and cost-conscious environment. He advocated for a focus on long-term stays and building partnerships with niche markets, such as traveling professionals and seasonal workers, to ensure stable revenue streams. The conversation also explored how marketing practices must evolve. Harrison and Searl both emphasized the need to leverage technology, including AI, SEO, and social media, to reach broader audiences. However, they noted that traditional strategies, such as Google Ads, are losing relevance as consumer behavior shifts toward more sophisticated, AI-driven search tools. Searl warned that operators must prepare for a rapidly changing digital landscape where visibility will depend on enhanced online presence and targeted messaging. Sandy Ellingson highlighted the need for inclusivity and accessibility in the industry. She stressed that attracting younger generations and first-time campers requires rethinking the entry points into outdoor hospitality. Ellingson pointed out that many parks have eliminated tent camping in favor of higher-revenue RV sites, which may exclude potential new campers. She encouraged operators to embrace emerging trends like car camping and package experiences to draw in diverse demographics, particularly Gen Z, who seek authentic and community-oriented experiences. Another key theme was the role of technology in driving efficiency and enhancing guest experiences. Ellingson noted that while larger resorts are already utilizing advanced tools, smaller mom-and-pop parks lag behind. She urged operators to invest in solutions that streamline operations, improve booking processes, and create memorable guest experiences. These innovations, she argued, are crucial for staying competitive in an increasingly sophisticated market. The group also addressed the need for campground operators to focus on experiential offerings. As consumers prioritize experiences over traditional camping, operators must create multifaceted revenue streams. Examples included food and beverage services, guided outdoor activities, and immersive amenities that add value to a guest’s stay. This shift could also help parks generate loyalty, as guests are more likely to return when they feel they are receiving a comprehensive experience. Bahr and Harrison acknowledged the resistance to change among some operators, particularly smaller park owners. This reluctance to adopt modern practices, such as embracing alternative camping styles or implementing dynamic pricing, could hinder long-term success. They all agreed that education and collaboration across the industry are necessary to bridge this gap and help operators understand the benefits of innovation. The episode concluded with a forward-looking discussion on the transformative potential of AI in the industry. Searl predicted that AI would redefine how guests discover and book outdoor experiences, enabling smarter decision-making and more efficient operations. However, he also cautioned that operators who fail to adapt quickly risk falling behind in a fast-moving market. Ultimately, the episode served as a call to action for the outdoor hospitality industry. They encouraged operators to approach 2025 with a mindset of flexibility and innovation, leveraging data and technology to meet evolving consumer needs. By doing so, they can position themselves not just to survive but to thrive in a rapidly changing market.