Pay more, get less—by the numbers

This Saturday marks the third annual attempt to gin up public excitement for National Go RVing Day, a marketing campaign from the RV Industry Association. As helpfully noted by the association, the celebratory event takes place during both National Camping Month and Great Outdoors Month and is “intended to motivate customers to embrace the RVing experience by reserving a campsite, visiting their local dealer, upgrading with a new aftermarket feature, or researching new road trip adventures.”

A sourpuss might also note that National Go RVing Day comes just a week after the start of hurricane season, not to mention an unofficial start to fire season in California and an especially brutal volley of tornadoes throughout the Midwest. Perhaps that—as well as an uneven economy that most penalizes the lower end of the economic spectrum—accounts for the season’s ragged start, as RV dealers and campground owners alike have been eyeing the coming months with some trepidation. No one really expects a disastrous season, but nor is anyone forecasting a really bitchin’ summer. Against that backdrop of anxious uncertainty, surely any marketing push can only help.

Then again, National Go RVing Day may be the most appropriate time to survey the RV park and campground industry overall to see how it’s been doing since the pandemic broke its back, in early 2020. And that exercise, for all the qualifications and caveats that must precede it and as detailed below, leads to two observations: number one, commercial camping and RVing has become significantly more expensive over the past four years, as RV parks keep jacking up their rates and larding on all kinds of new fees. And number two, industry wage growth has failed to keep pace with those revenue increases, resulting in workforce numbers that have yet to match pre-pandemic levels, even as the number of campgrounds and RV parks has grown.

Or to put it in a nutshell: if you go RVing this weekend, expect to pay a lot more than you did four years ago for dirtier accommodations and notably less personal service.

More on that in a moment, but first the caveats. Despite the fact that there are approximately 12,000 private RV parks and campgrounds in the U.S., they still constitute a niche market about which it is almost impossible to get good statistical data. That difficulty is compounded, recent acquisition fever notwithstanding, by the industry’s extreme fragmentation: for all of the growing roster of investor-driven roll-ups, the overwhelming majority of campgrounds are still owned by sole proprietors—private owners, it should be noted, who typically ignore industry surveys and tend to think it’s no one else’s business how they run their properties.

As a result, virtually all industry- and consultant-driven surveys are highly suspect, marred by flawed sampling techniques and low response rates. Even the nation’s 500-pound surveying gorilla, the U.S. Bureau of Labor Statistics, doesn’t attempt to drill down to such a granular level. Instead, it subsumes RV parks and campgrounds under a much broader “accommodation subsector,” which is defined as industries that “provide lodging or short-term accommodation for travelers, vacationers and others.” All told, that subsector included approximately 78,000 private establishments at the end of 2023, with campgrounds and RV parks therefore comprising roughly 15% of a total dominated by hotels, motels, resorts and other kinds of lodging.

Trying to understand what is happening within the campground/RV park universe using BLS data therefore means extrapolating from this broader aggregate, but despite those limitations it’s still the most extensive and reliable data set available. Moreover, it also requires factoring in the reality that campgrounds and RV parks are very much on the low end of wage scales within the accommodations sector, which means that however dismal such numbers are sector-wide, they’re even worse for the “outdoor hospitality” segment.

That noted, here are some relevant numbers:

  • The overall number of private lodging establishments barely took a hit from the pandemic, dropping from 73,792 at the beginning of 2020 to 72,756 three months later. Otherwise, that number has been on a steady upward climb ever since, growing by 7.3% over the four-year period ending in December, 2023.
  • The total workforce within the accommodations sector, meanwhile, plunged by more than half, from a record high of 2,119,700 at the start of 2020 to 1,056,700 in May of that year. It has yet to fully recover. Indeed, the growth in workforce size shows signs of leveling off since late last year and now stands at a preliminary estimate of 1,923,900—a 9.2% drop from its pre-pandemic high.
  • The accommodations sector’s producer price index, on the other hand, has been booming. Defined by the BLS as an index that “measures the percentage change in prices that domestic producers receive for goods and services”—briefly, what you get charged for the night—the PPI went from a high of 177.5 in the summer of 2019 to a low of 148.7 in November of 2020. Ever since it’s been on a sharp, albeit zigzagging upward march, dipping each winter before surging the following summer and hitting an all-time high of 201.875 last July. It currently sits at a preliminary estimate of 195.651, with nothing to suggest it won’t resume its upward trajectory to new highs over the coming months.
  • Finally, average hourly earnings of production and nonsupervisory employees in the accommodations sector have climbed pretty steadily since the end of 2019, from $15.90 an hour to a preliminary estimate of $20.78 this past March—which, as it turns out, is actually a slight dip from the $20.84 recorded in January.

What’s it all mean? Just this: over the past four years or so, the number of lodging establishments has gone up more than 7% while the number of people serving those establishments—greeting and booking guests, cleaning up after them, fixing the inevitable maintenance issues—has gone down 9.2%. That decline in employee headcount has come despite a 30.7% increase in wages over the same period, even as lodging prices have gone up 35.8%. In other words, campers (and other lodgers) are paying more for less service, and a disproportionate amount of that increased outlay is going to non-labor costs and margins and not to attract more and better-quality employees.

There’s every reason to believe, meanwhile, that these disparities are even greater on the campground and RV park end of things. A perusal of any campground job listings will quickly disclose that almost all are advertising wages between $12 and $15 an hour, which is scarcely above minimum wage in many states, and the accommodations sector’s “average” wage of $20-$21 is essentially unheard of among campground employees. RV park pricing, meanwhile, has readily exceeded the 35.8% increase in overall lodging prices over the past four years, and in many cases approaches or exceeds a 100% increase, creating even more of a disconnect between revenue and payroll.

Potential employees looking for a way to fill their gas tanks and stock their pantries don’t need a whole lot of number-crunching to figure out that working in the hospitality industry generally, and at campgrounds and RV parks in particular, isn’t going to cut it. And a camping public looking for an affordable way to spend a weekend or a week on a family vacation doesn’t need a spreadsheet to know that this RVing business is getting hopelessly out of hand—nor does it need a white-glove examination to understand it’s paying quite a bit more for quite a bit less in return.

The problems facing the industry, in other words, are far larger than National Go Rving Day can overcome.

Author: Andy Zipser

A former newspaper reporter who worked at a variety of newspapers, from small community weeklies to The Wall Street Journal, I finished my "normal" work life as the editor of The Guild Reporter, official publication of the union representing newspaper workers. On retiring, I and my wife bought a campground in the Shenandoah Valley and--with the help of our two daughters and their husbands--operated it for eight years, first as a KOA franchisee and then as an independent family-owned RV park. We sold the campground in May, 2021, and live in Staunton, Virginia, a short walk from our grandsons' home.

One thought on “Pay more, get less—by the numbers”

  1. I always enjoy reading your articles. I usually agree with your insights. This time you overlooked an obvious point. As the RV industry matures it evolves to a more efficient model. A few years ago most of the “owned by sole proprietors – private owners” campgrounds made reservations on a pad of paper. Today nearly all campgrounds employ reservation software and many use sophisticated pedestals that meter electricity and water. Security camera have taken the place of security people. Many campgrounds are not operated the way you did yours 10 years ago and they don’t require the workforce.

    We opened Homestead RV Community just over 3 years ago and have earned over 300 Google reviews (4.9 rating) many complementing our clean bathrooms, well-manicured sites and friendly staff yet we only employ one (1) employee.

    If you would like to see how an efficient Campground can operate, I invite you to visit us. We maintain 20 acres like a golf course, escort every guest to their site, clean 8 bathrooms with 15 toilets, deliver 5 full-size Jacuzzis to any site and set up either cold or hot water, deliver all the mail and packages, pick up all the trash AND maintain a store 12 hours a day 7 days a week, while automatically monitoring and charging for electrical use at each site with one (1) employee.

    Because of our automation our employee works about 20 – 25 hours a week and has more time to be personal with the guests. I design RV Destinations all over the country http://www.EOB-Consulting.com I design them to “Fit the location and Function efficiently.” If you want something to write about, call me. That would make a good story.

    Like

Leave a comment