KOA Surpasses $500 Million in Camper Registration Revenue – RVBusiness – Breaking RV Industry News

Booking.com
KOA Convention

Cole Reinhardt (left) and Toby O’Rourke offer some insights into a planned KOA AI bot during a speech on Wednesday morning.

EDITOR’S NOTE: Ben Quiggle, editor of Woodall’s Campground Magazine (WCM), a sister publication of RVBusiness, is covering the Kampgrounds of America Inc. (KOA) International Convention at South Point Casino in Las Vegas.

With the theme Viva KOA! it is no surprise that this year’s International Convention is striking an overwhelmingly positive note for Kampgrounds of America Inc. (KOA)

Held in Las Vegas, most of the park owners that Woodall’s Campground Magazine (WCM) has spoken with have noted that their parks were busy in 2023. That played out even more through the impressive stats that Toby O’Rourke, the president and CEO of KOA, shared during her speech.

The company hit a major milestone in 2023 crossing the $500 million mark in registration revenue. Overall, registration revenue is up 36% since 2019, noted O’Rourke.

With a 5% growth rate, she told the audience that the company expects to hit the $700 million mark by 2027.

Looking at short-term camper nights, O’Rourke did note that camper nights were down 4.8%, but that overall, compared to 2019, camper nights are still up over 5%.

“We want to reverse this trend and our goal next year is to increase camper nights by 2%,” she explained. “It will take a collective effort, but we have a lot of positive things going on right now.”

The company expects to have 15 new conversions enter the system and six new construction contracts in place by the end of the year.

“It is great to see this kind of movement even with higher interest rates,” O’Rourke highlighted. “Six of the 15 new conversions are from KOA owners that are doubling down by adding more parks.”

Digital Advertising is Working

During a panel discussion, Diane Eichler, KOA’s senior vice president of marketing, noted that the system has seen $99 million in revenue, 473,000 reservations and an impressive $37.05 in ROI (an increase of 23% YOY) through its digital advertising efforts.

KOA.com alone took in 70% of the system’s reservations and sees 21 million visitors annually.

The KOA rewards program is also driving campers to KOA parks accounting for $228 million in registration revenue, a 7.5% increase YOY. 53.6% of all reservations are booked through the rewards program and it accounts for 54.3% of all camping nights for KOA.

“Looking to the future, the odds are in our favor,” noted Eichler.

Doubling Down on Tech

Cole Reinhardt, executive director of digital strategy and transformation at KOA, noted that KOA is developing an AI bot that will help answer questions from campers. He gave a demo of the bot during his speech and noted that it curates answers from information that is found on KOA.com.

Other technology projects KOA is working on include:

  • An Enhanced Trip Planner
  • Ways to optimize the booking flow
  • Online reservation management tools that will allow campers to modify, create or cancel their own reservations
  • A new dynamic sitemap
  • and more.

Today, KOA is set to honor its franchisees through its annual awards program. KOA will also be opening its expo, with around 150 vendors taking part.

Convention Welcomes 800, Celebrates 70 NPS Score

KOA welcomed 376 campgrounds totaling 801 attendees to its annual convention at the South Point Convention Center on Tuesday (Nov. 15).

The company also announced a significant milestone during its opening session: a “World Class” Net Promoter Score (NPS) of 70. This score places KOA in the same esteemed category as renowned brands like Starbucks and Costco. Net Promoter Score is a key indicator of customer loyalty and satisfaction.

The convention’s opening session, “Bet on Yellow,” set by KOA leadership, captured the company’s strategic vision and its commitment to innovation and customer engagement in the outdoor hospitality industry.

“‘Bet on Yellow’ reflects not just our brand identity but also our investment in leadership quality and program excellence,” said Toby O’Rourke, president and CEO of KOA. “Our goal is to ensure every KOA location shines as a beacon of outstanding service and innovation for years to come.”

Some Key Highlights Included:

  • The launch of “Why We KOA,” an engaging advertising campaign aimed at younger Millennials and first-time campers, featuring a prominent billboard currently in Times Square.
  • Expansion of strategic partnerships with brands like Holo Shoes and Happy Camper Beer, enhancing the camping experience for a broader audience, and a new fuel partner with Pilot that will extend offers to KOA Rewards campers.
  • A significantly increased investment in K2, KOA’s proprietary, state-of-the-art campground Property Management System (PMS). This commitment underscores KOA’s dedication to leveraging technology as a key driver of future growth and operational efficiency.
  • The unveiling of comprehensive digital transformation initiatives such as “KOA A.I.,” Enhanced Trip Planning and Dynamic Site Maps aimed to simplify and enhance the guest experience.
  • Establishing a commercial strategy team, tasked with catering to each KOA franchise’s unique needs and highlighting a tailored approach to business development and support.

To read more about the opening general sessions, click here.

Source: https://rvbusiness.com/koa-surpasses-500-million-in-camper-registration-revenue/