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.