Pelland Blog

Times Have Changed

July 24th, 2024

When I first embarked upon my adventure working with the family campground industry over four decades ago, most campgrounds were owned and operated by a mom and pop. In many instances, either their last name or a combination of their first names also served as the name of their campground. They provided a highly personalized, but likely less than profitable, service to their guests. It was literally a labor of love. They knew the names of every camper who stayed at their park, even the transients who were there for their first of what would turn out to be many weekends. It was the owners themselves who sat behind the registration desk, mowed the grass, collected the trash, cleaned the restrooms, answered the phone (yes, just one landline phone), and took reservations that were secured with the equivalent of a handshake. Larger parks had the owners’ sons and daughters helping out on weekends and during summer school vacations. Reservations came in the mail as often as over the telephone, and they were typically written with erasable markers on a big white board behind the desk. They provided the kind of quiet, relaxed experience that many people nostalgically recall today, when kids were satisfied with catching frogs in a pond and their parents were content with breathing clean country air and sleeping under star-filled skies.

Times have changed. The campground business now calls itself the outdoor hospitality industry, and mom and pop have either passed away, turned the keys over to their sons and daughters, or sold to new owners with more modern business ideas. Just think of some of the things that seem so essential to running a campground today that did not exist 40 years ago: cell phones, WiFi, websites, Google, sponsored search advertising, social media, campground management and online reservation software, credit card processing, reputation management, water attractions, jumping pillows, dog parks, 50 amp electric hookups, mining sluices, hot tubs, karaoke, slide-outs, glamping, and playgrounds that consist of more than a swing set, teeter-totter, and maybe a merry-go-round … not to mention buyers coming out of the woodwork and people telling you that your business needs a presence on TikTok!

I have made no secret of the fact that I disapprove of many of the changes that have taken place in the campground industry in recent years. In particular, I believe that the trend toward corporate ownership and real estate investment trusts is bad for the industry and bad for the future of camping. I have written in the past about the parallels between what is happening in the campground industry today and what has taken place in the ski industry (where I actually started my business in 1980, prior to embracing the campground industry in 1982). I am still an avid skier, and I appreciate the senior flex lift passes (on RFID cards these days, of course) at my local ski areas, at a time when the bulk of the world’s ski resorts have been bought up by a handful of conglomerates that have priced skiing out of the reach of most families.

Near the price pinnacle during the 2023-24 ski season, a season pass at Aspen Snowmass would set you back at $3,314.00 per person, a weekday adult ticket was $244.00, and a weekday child’s ticket was $179.00. The Aspen Snowmass parent, privately owned Alterra Mountain Company, owns 17 ski resorts through a series of acquisitions in the United States and Canada, essentially fixing prices through its Ikon Pass. Vail Resorts, valued at $6.25 billion in 2021, owns 43 ski resorts throughout the United States, Canada, Australia and Switzerland, essentially fixing prices through its Epic Pass. Each of these companies has also partnered with additional resorts in South America, New Zealand, and Japan to extend their reach even further. Even if they can afford to pay the price, with limited ticket sales in effect at most ski resorts these days, skiers are essentially locked out of what used to be their favorite mountains unless they purchase the respective season pass. There are smaller multi-resort passes, with a more limited reach from Mountain Collective and Indy Pass … but – stop the presses! – Ikon, Epic and Mountain Collective have recently announced a merger that will introduce the new “THE Ski Pass” at $4,079.41, according to the conSKIerge website.

It doesn’t take a rocket scientist, and I do not claim powers of clairvoyance, to see where things are headed in the outdoor hospitality industry today. At a time when ski resorts are now charging you to park your car or check your boot bag, campgrounds are introducing fees for everything from locking in a specific campsite (following in the footsteps of the airlines charging you to select a seat) or using a credit card for payment. If the trends continue, it will not be long before the families who cannot afford to ski will no longer be able to afford camping. Until recently, the campground industry represented a camaraderie, where park owners supported one another, supported long-time vendors who supported their industry, and supported the associations that supported their interests. That is changing. Membership in associations is declining, and ownership groups are attempting to reduce costs through self-insurance, direct buying, and other means of circumventing the established distribution channels of essential products and services. This, in turn, is leading to an aggressively more competitive environment among suppliers. Does the industry really need 25 or more online reservation service providers? In my own business, I recently caught a competitor (rhymes with “big pig encyclopedia”) whose husband-and-wife sales team was directly contacting my clients with a sales pitch that pushed the ethical boundaries. This never would have occurred years ago. Mom and pop are turning over in their graves.

This post was written by Peter Pelland

Getting a Grip on Your Google Business Profile

February 17th, 2024

Many people are confused by what they see when they perform a Google Search, particularly when they are looking for their own business and think that it is missing from the search results. Scam operators capitalize upon this confusion and offer so-called search engine optimization (SEO) services that generally accomplish little more than obtaining your credit card number. To protect yourself from falling prey to these scammers, it is helpful to understand how Google search results are presented.

Combined, Google and Bing dominate well over 90% of the global search market share. Although Google’s market share has slipped slightly while Bing’s market share has correspondingly increased, Google still maintains nearly 85% of the total. The remainder goes to minor players such as Yahoo, DuckDuckGo, and the heavily censored Yandex and Baidu search engines that are used in Russia and China. Although Bing should not be ignored (and will be explored in a future column), the bulk of your search presence is coming from Google.

Just as cable, satellite, subscription and streaming services might all be thought of as “television” today, many people think that everything that appears on Google is part of the same “search” results. That may have been the case years ago, when most searches were performed on computers, and the results consisted of organic search results (the results based upon SEO) preceded by paid “Sponsored Search” results. Today, two thirds of searches are performed on phones, and many of us search for “(type of business) near me”. We don’t even type in those searches with the same frequency as we did a few years ago, now that we can simply tap the little microphone icon in the search box then search using spoken words.

Google Business Profile

Due to the way that those searches are performed, along with Google’s “mobile first” indexing, the first search results seen are the Google Places results that are accompanied by a Google Map with business markers. These results are based upon your Google Business Profile and your location in relation to the search, such as “campgrounds near me” or, for example, “campgrounds near Paducah KY”. The results should show three campgrounds that are closest to that downtown location upon which the map is centered. In this case, there are three campgrounds that appear in the initial view, and a fourth park – a KOA that is slightly more distant from downtown Paducah – only appears, along with several other properties, if you click on the “More Places” link or drag the map. This is despite the fact that the same KOA appears first in the actual organic search results.

That situation can be frustrating when you think of your business as being “near” a particular city, town, or landmark. It gets even more confusing when you consider that “near” is a relative term, where over 50 miles might be “near” in Montana or North Dakota, while less than 5 miles might be “near” in Connecticut or New Jersey. Most importantly, if you have not created a Google Business Profile, you are essentially not near anything! Drop what you are doing and check to see if you have a GBP by doing a Google search for your business by name. If you do not see that profile to the right of the search results on a computer or at the top of the search results on a mobile device, it is time to create that profile. Alternately, if you see a GBP that contains a link that says “Own this business?”, it is time to take control and complete the profile that has been auto-generated. To understand the importance of this, bear in mind that many people do not scroll beyond these Google Places to see the actual Google Search results!

If you do not see a Google Business Profile – which will frequently be the case with a new business – go to https://www.google.com/business/ to get started. It is free to create this profile, you should do it yourself, and – most importantly – you do not need to pay anybody to provide this service. As the page says, “Take charge of your first impression”. When you manage your profile, the first thing you want to do is to check for and add any missing information, such as your website URL, phone number, correct address, and most appropriate business category. You will next be able to add your logo, photos, and attributes – such as your business being veteran-owned, if that is the case. Once this has been done, it is time to use your GBP to truly interact with potential customers. Post special offers, publicize events, respond to Google Reviews, send and receive direct messages, and create a set of frequently asked questions and answers.

Get Verified

If you do not see a green check mark next to the name of your business on your GBP, click on the “Get verified” link that should appear in its place. If your business has a Google Search Console profile, you will qualify for instant verification. More likely, you will have to utilize one of the standard verification methods, typically a phone call, text, or an email. Less commonly, you will have to use mail verification, where your code will arrive on a postcard within about 7 days or so and must then be entered before it expires in 30 days. Whichever method is being used in your instance, do not edit any of your business information until after the 5-digit verification code has been received and entered. All of this is easier than it may sound, if you just follow the instructions step by step. As I have warned, there are scam companies out there that will also offer fee-based “GBP optimization” services, but beware of those alleged services just like the fee-based SEO outfits. Claiming and verifying your Google Business Profile is something that must be done, and you can easily do it yourself!

This post was written by Peter Pelland

Understanding and Capitalizing Upon Churn

April 1st, 2023

It is well-known among businesses of all sizes and across all industries that it is far easier to get an existing customer to renew their business relationship with a company than it is to find and build new customers from scratch, the difference between customer retention and customer acquisition. For a campground, the existing customer base consists of seasonal campers and transient guests who have stayed at your park within the past one to three years and who enjoyed their stay. Statistics indicate that there is up to a 70% likelihood of getting an existing customer to return, while getting a new prospect to turn into an actual customer only occurs from 5% to 20% of the time. The rate of success is contingent upon the quality and volume of your marketing efforts, and acquiring those new customers can incur a cost of up to 7X more than the cost of getting an existing customer to stay with your business, according to research by Bain & Company published in Forbes. Considering those acquisition costs, it should be pretty clear that even a small increase in customer retention can increase overall profits by a substantial margin. Why is it then that most businesses spend more time and money on acquiring new business than focusing on retaining their existing customers? It just doesn’t make sense.

The loss of customers for various reasons is referred to as “churn” or attrition. The term originated with the process for making butter by agitating milk and cream. Without agitation, those ingredients will never turn to butter. It is easy to surmise the importance of preemptively knowing if there are any factors that are agitating your existing customer base, which I have noted consists of guests “who enjoyed their stay.” Your office and registration desk can be very busy at the time of your guests’ arrival, particularly on weekends; however, departures are usually far less hectic. Take advantage of that opportunity to avoid self-checkouts and to try to engage each guest with a brief exit interview. If a stop in your office is not required, catch those guests at your exit gate, asking them if they enjoyed their stay and if there is anything that could have been done to make their stay more enjoyable. If nothing else, they will appreciate that you took the time to ask. Keep track of this feedback, along with any comments that make their way onto online review sites, and take corrective measures if necessary.

Some businesses have notoriously high rates of churn, while others have high levels of customer loyalty. For example, with the exception of users of customer loyalty cards, most people have no loyalty to one brand of gasoline over another, generally accepting that 87 octane unleaded regular is the same just about everywhere, making buying decisions primarily based upon price and how close their tanks are to being empty. Even businesses with historically high rates of customer loyalty can see that situation change overnight when a monkey wrench gets thrown into the works.

Nobody Likes Change

In the outdoor hospitality industry today there is an unprecedented drop in customer loyalty that is accompanying changes in ownership. If a nearby campground has changed hands, particularly if it has evolved from family-owned to corporate ownership, customer dissatisfaction is almost a certainty. Rate increases, newly added fees, and indifferent management all present the milk and cream that you can churn into butter. In many instances, the new owners are obsessed with making infrastructure improvements that rationalize rate increases when the customers they inherited were quite satisfied with the status quo. In other instances, they will literally force out seasonal campers in favor of more profitable transient campsites. If you have the capacity to fill seasonal sites, turn on a “welcome” sign while your competitor is showing those customers the exit.

When management is separate from ownership, there is usually little incentive to work toward long-term success. Management is unlikely to be performing the exit interviews that you should be conducting, and it may be turning a blind eye to online reviews and complaints. Your knowledge of the specific dissatisfactions will allow you to significantly boost the new customer acquisition rate well above the 5% to 20% norm. Just because campers are unhappy with management and new policies down the road does not mean that they are ready to give up on camping. They simply need to know that you are better prepared to respond to their needs, while offering proximity to the same amenities and nearby attractions that they have grown to appreciate.

Although you will no doubt hear word of mouth, go online and search for “(name of campground) complaints” or “(name of campground) reviews” to get a snapshot of major points of dissatisfaction. Look for complaints on campground review sites but also on Yelp, TripAdvisor, and the Better Business Bureau. If there is a preponderance of negative reviews, you can easily identify your opportunities to expand your customer base. Here are excerpts of actual reviews of various parks that recently changed hands:

“Been coming here for 5 years, I used to think this place was the best for family fun but like all things usually do service and accommodations are getting worse and worse. To start with I reserved a premium pull through spot in February for this weekend. I had to pay $50 just to assure I have the spot I reserved. What’s the point of a reservation if you have to pay extra to reserve the spot you selected? Golf cart rentals are higher than average now and if you want to play mini golf you have to pay, when it used to be free.”

“We have been coming here for years, and never had the experience we did this last visit. The campground has gone downhill. Staff is no longer friendly and welcoming as they used to be. This place was once a great relaxing place to vacation but that it no longer the case. We spoke with some folks at the pool that live there, and was told they are also having issues with new management and was sad to hear it was happening to visitors also. Needless to say that was my last trip there!”

“I booked a reservation today, where during the process you pick your site. Once I booked it, the system came up with an extra $100 fee to lock your site. I did not think anything of it and continued. When I printed my reservation confirmation the number of my site was missing. I then called to find out and was informed that you get whatever site is available unless you pay the additional $100 fee. I then asked to cancel the reservation and got everything back except for a $20 cancellation fee. I asked for a supervisor, and the lady said she was a supervisor and would not refund me fully even though I just made the reservation less than 90 minutes earlier. This just left a horrible feeling. Makes me think all they are interested in is money and not good customer service. It is a shame because it was going to be a group of us, but I called the other 4 couples and told them not to book. We will go to another campground.”

“My husband (now deceased) and I purchased a park model at a campground that this company now owns in June of 2020. We paid a premium price (well over its value) for this particular park model because its location in the campground. The park was then bought out by the new owners at the end of last year. Yesterday we received a letter via email informing us that not only are they eliminating our site from even being a possible location for a park model/seasonal lease, but we would have to sell it through the park’s RV sales lot, will have to pay to move it to that lot, and any likely buyer will have no chance of being able to use it anywhere within the park. We will likely lose at least $20,000 when all is said and done.”

There are patterns in those complaints, mostly involving increased fees and indifferent management. Times are changing, but not necessarily for the better. As always, change can present opportunities for well-informed business owners. Now is perhaps the best time in years to churn some butter!

This post was written by Peter Pelland

Do Some Math, Then Get Real

November 17th, 2022

My company builds websites for the campground industry. A few years ago I reached out to the manager of a campground in a Northern state whose website would appear to be in desperate need of replacement. Its 14 year old website (nearly a century in either website or dog years!) was not mobile-friendly, had zero in terms of SEO (search engine optimization), was not ADA compliant (really an unknown issue at that time), had nothing but a phone number to call for reservations, did not even list the campground’s address, and had not been updated since it was built (still promoting that the park was the “newest” in its area.) After being asked to quote on a new website, the manager responded that my company’s services were “to rich” (sic) for his campground that was only open for a 5 month season.

I explained that most campgrounds in the Northern states were only open from late spring through early fall, hardly an operating calendar that was unique to his park. Based upon the weekly rates that are published on his website, if a new professionally designed website brought in only 15 new campers who would not have otherwise chosen to stay at his campground, he would have fully recovered his investment during a single season. That investment recovery would not even include the additional income generated by those guests’ purchases in his store, laundromat, game room, or fee-based added services. I went on to ask if his park was at full occupancy throughout its 5 month season, pointing out how the satellite image on Google Earth showed that his park had 48 sites – 35 pull-thrus and 13 back-ins – only 16 of which were occupied at the moment when that most recent image was captured.

I am referencing this campground’s website as simply an example of short-sighted thinking. The campground manager could have been dismissing the cost of Wi-Fi service, reservation software, upgraded electrical service, energy efficiency upgrades, a new line of store merchandise, a new dumping station or honey wagon, new rental boats, cabin or park model rentals, yurts or teepees, branded apparel, or replacements for the worn out and inefficient washers and dryers in his laundromat. Translated from the original Latin, the adage that “you have to spend money to make money” is nothing new, originally credited to the Roman playwright Titus Maccius Plautus a little over two millennia ago.

I can understand a short season factoring into a decision to purchase a motorcycle, snowmobile, speedboat, convertible automobile, or any other consumer good that represents an emotional want rather than a physical need. Those decisions all involve the purchase of personal goods, whereas an entirely different set of standards should apply when making well-informed business decisions.

I have always found it useful to make business decisions based upon the measurement of projected return on investment. This can apply to almost any purchase. Let me use Wi-Fi as an example, along with a few rounded numbers to simplify calculations. Let’s presume that you run a campground with 100 sites, that your average nightly site fee is $50.00, that the average guest stays two nights, you have an average occupancy rate of 50%, your season runs 150 days, and that 50% of your prospective campers demand Wi-Fi and will not stay at a park that does not offer high-speed Internet at sites. Let’s also presume that the cost of a new Wi-Fi installation at this small- to medium-sized park would be $7,500.00 (admittedly on the high side.) Although some parks charge for the service, and others offer tiered service levels, let’s presume that your park is going to treat Wi-Fi service as a utility that will be provided to its guests at no added charge as part of its overnight fee.

If the added service increases occupancy from 50% to just 60%, that means filling 10 otherwise empty campsites at $50.00 per night. Over the course of a 150 day season, this represents $7,500.00 in income, fully recovering the investment in the new Wi-Fi system, or an investment that is recouped in a single season. If your park is in a competitive market that allows it to charge for Wi-Fi service, the payback period may be even shorter. The same sort of calculations can be applied to an investment in upgraded electrical services, when your prospective guests are seeking out reliable 50-amp service when most of your sites are providing 20- or 30-amp service through rusty power pedestals with circuit breakers that trip open on a regular basis. In fact, when it comes to park utilities, problems with Wi-Fi, electrical service, roadways, water pressure and sewerage are just as likely to lead to an abbreviated stay as an obnoxious camper or barking dog on an adjacent site. The same claim may be made for restrooms or playgrounds in dire need of upgrades, a store with too many empty shelves, or a game room with too many “out of order” signs. Weaknesses in these areas can actually be driving away business, as well as inflicting harm on review sites.

When it comes to less tangible services such as a park’s website, reservation software, planned activities and advertising, it is still quite easy to calculate return on investment and to make informed decisions. In fact, these represent some of the best ways to spread the word about that new Wi-Fi or electrical service, essentially speeding the return on investment on those infrastructural improvements. Think twice – and perform some calculations – prior to dismissing a business investment out of hand. That “too costly” investment may be both easily recovered and the key to running your business more profitably than ever.

This post was written by Peter Pelland

Adapt to Changing Times

August 27th, 2020

If there is one thing that is certain with respect to the COVID-19 pandemic, it is that it has almost universally inflicted a negative impact upon small businesses, campgrounds included. It has been a wild and bumpy ride that is far from over as I pen this column in late June of 2020. In most instances, the timing of the pandemic could not have been worse, delaying openings and leading to a wave of cancellations at the start of the season.

Campgrounds that were forced to delay their openings longer than those in most other states, understandably upset that their ability to generate income had been severely hindered, may end up faring better in the long run compared to parks in states that jumped the gun at reopening. With several Northeastern states – particularly New York, New Jersey, Connecticut and Massachusetts – representing early hot spots for the virus, some of the less densely populated states may be hitting their peaks at the height of the summer camping season – a situation that could end up being far worse than a delayed opening.

Wherever you fit in the continually evolving map, there is no question that you are going to have to get creative in order to at least partially offset an overall loss of anticipated income.

Reach Out to Non-Campers

Despite the fact that the airlines and the hotel industry are making serious attempts to persuade the public that they have made changes to safeguard the health and well-being of their passengers and guests, some of the last things that most people want to do at this time would be to take a non-essential flight and stay in a big hotel. There is even less desire to take a cruise (if the cruise lines were open) or to be a part of a large indoor event (if most of them were not cancelled out of respect for both common sense and the public welfare.) The hotel industry is adapting what are called enhanced cleaning protocols to sanitize guest rooms, common areas, and key touch points. For the time being, guests should not expect breakfast buffets, welcome drinks or mini bars, and nobody wants to ride on a crowded elevator with a man who is not wearing a mask and who just sneezed.

With all of the hesitancies that are challenging the hotel industry, campgrounds are rightly perceived as a much safer lodging alternative, particularly those that offer full-service cabins and other accommodations that appeal to people who have been non-campers. Of course, you need to practice those same enhanced cleaning protocols that apply to hotel rooms; however, you should embrace the opportunity to be able to reach out to a new category of guests who are new to the camping experience. This might mean stepping up your offerings of services and amenities that might have been expected in a more conventional setting, many of which offer new opportunities for added income. For example, just as hotel guests might rely on room service to order meals, you might offer deliveries of things like ice, firewood, and even pizza. You might also want to consider advance check-ins, express check-outs, escorting new guests to their sites, and adding branded face masks and sanitizer products to your store inventory.

Consider Extending Your Season

Although experts within the medical and infectious disease communities are currently predicting a 75% likelihood of a second wave of outbreaks in the fall (based upon previous pandemics in 1918 and 1957), should this not occur, you might want to consider extending your camping season beyond its usual closing date. This represents another means of compensating for some of your likely losses both at the start and at the height of your season. The interest in camping is less likely to wane at the end of the summer as may have been the case in past years. Schools may or may not be reopening, and spectator sports like NCAA and NFL football are likely to either be cancelled or have restricted attendance. In normal years, unless your park was located in close proximity to an NCAA college campus or sports stadium, the seasonal interest in these events tended to divert a portion of your guests away from camping. Those guests might now be quite willing to continue their camping seasons, particularly after getting off to a late start.

Recruit Seasonal Campers

There has always been somewhat of a quandary between whether a park should have a greater number of seasonal or transient campers. When occupancy rates are high, there is no question that transient sites generate more income than seasonal sites. On the other hand, seasonal sites represent stable income that is as safe and secure as money in the bank. In 2020, with phased business re-openings in most states, there is no question that predominantly seasonal or all-seasonal parks fared far better than parks that cater primarily to overnight guests. In particular, parks that rely upon their proximity to major nearby attractions have been hurt badly while many of those attractions have remained closed. Hurt even worse have been parks that cater to a highly mobile clientele, located midway along a highway connecting two major attractions.

Now might be the right time to consider converting a number of your park’s overnight sites into seasonal sites. With that same desire for safety and security, many campers are showing a first-time interest in becoming seasonals. Promote the availability of these new sites on your website and social media, not only for 2021 but offering pro-rated opportunities for the current season to your existing guests. If you have transient guests who are returning for multiple stays, reach out to them personally to offer them one or more incentives to become seasonals. Sometimes it is simply a matter of asking them what it would take on your part to persuade them to make the decision.

When it is necessary to adapt to changing times, it is important to be flexible and to think of innovative ways to safeguard your income, profitability, and your ultimate business survival.

This post was written by Peter Pelland

What Is Normal?

July 27th, 2020

We hear a lot of talk about the “new normal” and a “return to normal”, but what exactly is normal? I will admit to being a lover of language and linguistics. The dictionary defines normal as “conforming to a standard; usual, typical, or expected.” We can also get into some more statistical definitions involving standard deviation from the mean, along with more technical definitions in fields such as geometry, medicine and sociology. Allow me to offer a general definition for normalcy or normality (two synonyms with identical meanings as the more awkward and far less frequently used word “normalness”) as a condition that meets currently conventional cultural expectations. “Current” because what is normal changes over time, and “cultural” because what is normal varies among different social environments. Cricket is fairly unique to the British, bullfighting is fairly unique to the Spanish and football only begins to make sense to Americans, but they are all considered normal in their own environments.

In general, humans are not that interested in what is average, more likely considering it to be either boring or mundane. What we want is something that appeals to us individually and that falls within our own comfort zones. That is part of the big appeal of camping, and that is the reason for such a wide range of choices when it comes to campgrounds. Unless a person suffers from agoraphobia, there is a campground and its accompanying social experience that represents a perfect and easily accessible escape to the comfort of what constitutes that person’s “normal”.

A “Comfort Zone” or a “Twilight Zone”?

The COVID-19 pandemic has certainly thrown us all for a loop. Travel restrictions, social distancing, and the wearing of masks have certainly erected barriers to normal social experiences. As we cautiously evolve toward a state of normalcy – either old or new – comfort zones will vary from one person to another. In the opening narration of the first season of The Twilight Zone, host Rod Serling defined what he called that fifth dimension: “It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man’s fears and the summit of his knowledge.” We are in that Twilight Zone right now!

For example, as I am writing in early June of 2020, there is no way that I am ready to sit in a movie theater, attend a music festival, sit in a sports stadium, join a peaceful demonstration, take a seat on an airliner, and even think about attending a convention. I have written more than once in the past about my concerns over the lack of sanitation and cleanliness in hotels, and I am not yet assured that the hotel industry is up to meeting the new challenges. I already had no intention of ever taking a cruise again in my lifetime. Maybe I have always been more aware of sanitary standards than the average person, and a compromised immune system makes me ever more cautious; however, until each business category and individual businesses within each of those categories can put me into my comfort zone, those businesses will remain in their own twilight zones.

Campgrounds are in a much more persuasive position when it comes to meeting people in their comfort zones, as well as not worrying about contributing toward a spike in infections. Once interstate travel restrictions are eased, most people realize that staying in their own RV is just as safe as staying at home. Whether under state mandate or an abundance of precaution, it is up to individual campgrounds to offer the assurances that they have implemented measures to ensure the safety of their guests and employees. Some things will need to change, at least for the time being.

Shared Facilities and Group Activities

It is unfortunate that it sometimes takes a pandemic to open our eyes, but change is nothing new, especially when it comes to public health concerns. Two generations ago, who would have thought twice about people sitting around a swimming pool or involved in a group activity while smoking cigarettes? Even a decade ago, nobody would have given any thought to picking up their dog’s waste at the side of a roadway or trail. I am willing to venture a guess that there is nobody who yearns for the days when they could take a leisurely walk and accidentally step in a pile of dog waste.

As we exit from the current crisis, just as important as it is to outline your expectations for your guests’ behavior, it is necessary for you to outline what you are doing to alter your own business practices in the interest of your guests’ wellbeing. These are the assurances that will take those guests – both new and returning – from their twilight zones into their comfort zones, helping your business to recover from what has most assuredly been an economic disaster.

You will want to reassess standards in your shared facilities. This might include spacing out seating areas in pavilions, ensuring that separate employees in your store or snack bar are handling food and financial transactions, actively maintaining a housekeeping checklist in your rental units and restrooms, installing soap dispensers and hand dryers if they are lacking in your restrooms, and installing and maintaining hand sanitizer stations in frequent use areas. You will also want to reassess some of your planned activities and events. This might not be the best time to engage in shared food events such as potluck dinners, barbecues, or make-your-own sundaes. It is probably also not a good time to schedule events that involve close personal contact such as arm-wrestling contests or three-legged races. Your playground should be cleaned on a regular basis, and the clubs and balls on your mini-golf course should be sanitized when returned at the end of a game. A lot of this can be thought of as more of the “new common sense” rather than the new normal. We will get over this. Thinking over the concept of what is normal will help you to financially recover all that much sooner.

This post was written by Peter Pelland

Your Small Business Short-Term Survival Guide

April 2nd, 2020

This morning, as the sun rose on a new day, outside my window I could hear birds singing and see trees budding. We are just short of seeing the first blooms of spring breaking through ground that was covered by a fresh blanket of snow just a week ago. Outside of humanity’s limited perspective, life is going on as usual. For those of us who are sheltering in place and seeing our livelihoods disappear like a magician’s grand illusion, life is anything but normal. None of us can predict where we will be a month from now or beyond. Will we have personally contracted the Coronavirus, and will we be added to the numbers of survivors or the growing numbers of victims? About all we can do is pray for the best and do everything possible to ensure our personal survival. This includes the survival of your small business.

We hear the news reports each day about the massive layoffs of employees in the hotel, restaurant, airline, and retail service industries. Massive retailers such as Macy’s, Kohl’s, Best Buy, JCPenney, and Gap have furloughed hundreds of thousands of employees. When shopping malls and retail stores are closed, it is difficult to keep sales associates on the payroll.

Your Small Business

The big companies and the big industries dominate the news because of their impacts upon larger numbers of people; however, there are some 45 million small businesses in the United States today, ranging from sole proprietorships with a single employee to somewhat larger businesses with fewer than 500 employees. Family campgrounds, as well as the vast majority of suppliers to the industry, fall into this small business “mom and pop” category. If you run a campground, albeit on a smaller scale, you are hurting just as badly as the airlines, hotels, and cruise ship companies. Nobody needs to tell you that your phone is not ringing off the hook with reservation requests.

Absolutely nobody asked for the COVID-19 pandemic, but we are all being impacted. As you probably know, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March. Several of the provisions of this economic stimulus package are designed specifically to provide assistance to businesses like yours. You simply need to file the applications, and to file them quickly. As I have mentioned, there are some 45 million small businesses in America, and probably 99% of them have been seriously impacted; however, the funds that have been allocated under this massive stimulus package will only cover approximately 1 million claims.

You Are Entitled to Assistance

The first component that is now available is the COVID-19 Economic Injury Disaster Loan assistance program that is administered by the U.S. Small Business Administration (SBA). This program involves a simple, five-page online application that will entitle you to receive a one-time $10,000 non-taxable, forgivable loan payment. It is essentially a grant that will be issued directly by the SBA and deposited directly into your bank account, designed to help your small business to weather the storm and be ready to welcome guests again when all of this is behind us. It is important for your business to survive and to return to its role as a productive component of our country’s economy, and these funds are intended to help to make that happen. Go here to apply now:        
https://covid19relief.sba.gov/#/

The second component that directly applies to your business is the Paycheck Protection Program. This applies to you even if you are the only employee at your campground, but it is particularly helpful for campgrounds with a number of employees, particularly full-time year-round employees who are essential to the operation of your business. I understand that many mid-sized and larger campgrounds have put their hiring of seasonal employees on hold, but you cannot be expected to find, hire, and train replacements for your management and supervisory staff at a moment’s notice. You need to do everything possible to keep these people on your payroll (and off of your state’s unemployment compensation rolls.)

The Paycheck Protection Program consists of calculated loans that will be forgiven and converted to non-taxable grants as long as the funds are used as intended. The amount of the loan is determined by your documented payroll expenses (including independent contractors who are provided with 1099’s rather than W-2’s) and a simple formula. The general idea is for these funds to be used to help you to keep as many employees as possible on your payroll for 8 weeks, even if they are unable to perform their usual responsibilities. These loans will be distributed through the SBA through local banks. The applications will be available online starting on Friday, April 3, 2020. They will be found here: 
https://www.sba.gov/funding-programs/loans/paycheck-protection-program

In the meantime, contact the bank (credit union, or other lending institution) where you conduct your usual business, to determine whether or not it will be participating in this program. (It is likely that it will be participating, since it will earn fees for processing these loans.) You will otherwise be directed to another nearby bank.

The Bottom Line

As we have heard it said from the many recent White House briefings, “America wants to return to work.” The only way for this to happen is if businesses, both large and small, can survive this current crisis and be ready to open their doors to their customers once again. There was a fight to include small business assistance in what could have otherwise been nothing more than a massive corporate bail-out. It is your responsibility to apply to receive your fair share of assistance. The federal government wants you to return to being a productive taxpayer, your state wants you to keep employees on your payroll and off the unemployment lines, and your campers are eagerly waiting for the time when you can welcome them to a fully operational park.

This post was written by Peter Pelland