Profit center analysis within private campgrounds
Abstract
A 1990 study conducted on Wisconsin Association of
Campground Owners assessed which profit centers other than
campsite rentals contributed significantly to campground
gross revenue. Detailed financial data were collected from
86 surveys. Correlation analysis was used to determine
whether site rental, store, recreation, and supplemental
service income contributed significantly to gross revenue.
It was found that almost 27% of the total income was
generated from sources other than campsite rentals. A rank
ordering showed overnight campsite rentals with the largest
contribution (73.1% with r2 = .843, p = <. 01) and
recreational services with the least (4.2% with r2 = .390,
p = <.0l). Retail store sales was a complementary service
which contributed 15.1% with r2 = .560, p. = <.01. Spending
patterns of campers was compared to profit center revenue.
Overnight, seasonal, trailer rental, and cottage/cabin site
rental represented a separate segment of camper. It was
found overnight campers contributed the most revenue support
and best explained the variation in gifts, wood/ice, and
vending profit center revenues with r2 values > .750, p =
<.01. Seasonal campers contributed the least profit center
revenue support, although gifts were important as indicated
by r2 = .520, p = <.01. Understanding the relationship of
spending patterns and profit center revenue would aid
campground operators in developing effective profit centers.
Subject
Camp sites, facilities, etc. - Finance
Profit