How does a campground or RV park make its money?
A campground or RV park earns from seasonal site fees, nightly and weekly stays, cabin or trailer rentals, a store, and add-ons such as firewood, propane, laundry and storage. Each behaves differently across the season, so a buyer reading the books should look at each stream on its own.
If you are looking at a campground for the first time, the revenue lines in the books may look like a long list of small items. Grouping them helps. Some income is booked early and steady. Some depends on weather and weekends. Some is small. Knowing which is which lets you ask better questions about any park you consider.
Seasonal site fees
Seasonal campers pay for a site for the whole season, often in advance. Ask which of these income lines the park relies on most. It also means those sites are not available for short stays. Ask how long campers have stayed, how rates have changed and how payments are collected.
Nightly and weekly stays
Short stays fill the sites that seasonal campers do not. They rise and fall with weather, holidays and local events, and they bring work: more check-ins, more cleaning and more booking. Look at how they were booked and how the owner handled busy weekends. The day-to-day ownership page shows the work behind this stream.
Rentals, store and add-ons
Cabins, trailers and tents for rent add income, and also repairs and turnover. A store, firewood, propane, ice, laundry and storage add smaller amounts that can matter over a season. Ask which of these the owner runs well and which are ignored. A line that looks small may grow with attention, or may only exist because the owner stands at the counter.
Reading it in the books
Ask for revenue split by stream and by month, so you can see the season’s shape. Compare it with bookings and bank deposits. Your accountant can help you read the statements, and the buying guide explains how the pieces fit together. This page describes streams, not results, and no stream is guaranteed.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should I check before buying a mini golf business?
- GuideBuying a campground and RV park in Canada
- Expert answerShould you buy a franchised campground or an independent one?
- Expert answerShould you buy an existing campground or build one on raw land?
- Expert answerWhat does owning a campground involve day to day?
- Expert answerCan you run a campground with a manager instead of living on site?
- Expert answerHow can I tell if a water store is profitable before I buy it?
- Expert answerShould I buy an existing water store or open a new one?
- Expert answerHow do I find a mobile home park for sale in Canada?
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernment4 key steps to plan your cash flow in the coming year
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 04Business Development Bank of CanadaGovernmentBusiness plan template for entrepreneurs
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