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
Tags: COVID-19 Posted in Marketing Strategies, Small Business |
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
Tags: Coronavirus, COVID-19 Posted in Marketing Strategies, Small Business |
Practices and Policies Need to Adapt to Changing Times
April 15th, 2020
Apprehensively but out of necessity, I had to venture to one of our local supermarkets about 10 days ago, in order to stock up on essentials prior to what was predicted to be the coming peak of the COVID-19 pandemic here in the state of Massachusetts. I headed out early, equipped with mask and gloves, in order to quickly run through our household shopping list during the store hours that are designated for those over the age of 60 or otherwise considered high risk for the virus. The fact that the store has designated these exclusive hours represents an example of adaptation to these changing times.
Within the store, my
shopping habits needed to adapt as well. Once I grew accustomed to my eyeglasses
fogging due to my face mask, I also had to learn to navigate the departments
and aisles by following the new red one-way traffic arrows and, of course,
maintaining a safe distance between myself and fellow shoppers. There were
measures in place to reduce the interaction between employees and customers,
such as the deli products being strictly pre-sliced and pre-packaged, as well
as the large plastic shields separating customers and checkout clerks. It was
not time to casually compare and select fresh produce items, and there were of
course many items that either had a very limited selection or were totally
unavailable.
If the usual background
music was playing, designed to encourage shoppers to relax and linger, I did
not notice it. I only noticed announcements about how there should be only one
shopper per household, how there would be purchase limits of certain items
(including toilet tissue, of course!), how you needed to maintain a six foot
distance from other shoppers, and why reusable shopping bags were no longer
permitted at this time. At the checkout, my gloved hand held out my loyalty
card for the bar code to be scanned, rather than handing it to the clerk, and
there was a new set of rules and policies posted on signs affixed to the large
plastic shield. One of those new policies was that, during the course of the
pandemic, all sales would be final, with no returns, exchanges or refunds. That
policy makes total sense under the circumstances.
How
Does This Affect Your Business?
Over the years, cancellation
and refund policies were established and became the usual practice in the
airline, travel, hotel, and outdoor hospitality industries. These policies protected
those businesses that were reserving space that could otherwise be booked by
other consumers, helping to discourage double-booking and last-minute
cancellations. Although there were occasional grumblings and complaints,
generally from people who would otherwise abuse the spirit and intent of those
policies, most of us recognized and accepted the need for these practices to be
in place. These practices were essentially part of a fundamental two-way
contract. The customer was being guaranteed a room in a hotel, a seat on an
airliner, or a campsite or cabin at a campground, in exchange for a guarantee
of payment and a timely arrival at the reserved date and time.
During this same time,
supermarkets and most retailers generally established extremely flexible return,
exchange, and refund policies. Intended to keep customers happy, the primary
rule at the courtesy desk was to ask no questions. The only exceptions were
generally for custom-made merchandise, such as a gallon of a blended paint color
at a hardware store, or merchandise where returns were prohibited by law, such
as undergarments that had been worn. There were many instances when customers
abused those policies, exemplified in a short play that I enjoyed not that long
ago, involving a main character who predictably each January returned his
recently purchased artificial Christmas tree to a department store, seeking a
refund. In recent years, the desire to keep customers happy has been compounded
by the desire to avoid the reputational damage that can be incurred as the
result of online consumer complaints.
The
COVID-19 Pandemic Is a Game-Changer
During the current pandemic,
it is necessary for all businesses to reassess their policies and to accept the
fact that everybody is in the same big boat where we are all hurting. If you
own a campground, you know that people would like nothing better than a return
to what was normal just a few short weeks ago. Your customers are not
cancelling their reservations because they decided to camp elsewhere or because
there is rain in the forecast for the upcoming weekend. They are cancelling
their reservations either because your state has temporarily shut down your
business or out of a legitimate fear that social gatherings could currently
lead to either infection or death. In addition, many have lost the security of
employment.
With 15 million Americans filing for unemployment claims over the past three weeks, most of us are finding it necessary to limit our expenditures to necessities for the time being. The family who paid a $300.00 deposit to reserve a campsite for July now needs to be concerned about putting food on the table and paying their rent or mortgage.
When this pandemic has
passed its peak, but not until we have a proven vaccine, there is going to be
an understandably cautious return to the normalcy that we once enjoyed and took
for granted. Your business will return, but it is unlikely that it will return
as quickly as the opening of the floodgates at a dam. When business eventually
returns to normal, the businesses that will prosper will be the ones who
treated their customers with respect and understanding, not the ones who pointed
to their rules and refused to relax their refund and cancellation policies
during this pandemic.
If you would like to offer
your guests an option, you could give them the choice between a full refund or
an unexpiring credit with a value of 110% of what they paid. For those guests
who can afford to forego the refund, consider their deposit as a voluntary loan
that will help you to weather the storm. Have confidence that you and those
guests will be there when the dust settles.
Remember, we are all facing
this crisis together and need to pull together as a nation. We are all hurting.
At the time of this writing,
as limited and inadequate as they may be, your small business may qualify for
both a COVID-19 Economic Injury Disaster Loan (EIDL) and a Paycheck Protection
Program (PPP) loan, both designated to be at least partially converted into
non-taxable grants. Meanwhile, your customer is hoping to qualify for an
Economic Impact Payment of only $1,200.00 per adult taxpayer and $500.00 per
dependent child, with the expectation that those might not even materialize
until September.
It is not easy, and
it may be painful, but I suggest you to do the right thing regardless of what
your cancellation policy has outlined prior to this crisis.
This post was written by Peter Pelland
Tags: cancellations, Coronavirus, COVID-19, refund policies Posted in Uncategorized |
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
Tags: Coronavirus, COVID-19, Economic Injury Disaster Loan, Paycheck Protection Program, SBA, Small Business Association Posted in Small Business |
COVID-19: Your Response
March 21st, 2020
There is no question that
our world has been turned upside down within the last few weeks. Just when some
people were concerned that the spring allergy season was about to begin, we have
been faced with a worldwide pandemic of an entirely new and highly deadly virus
called COVID-19. One impacted state after another has responded in rather
serious fashion, starting with the states that were hit with the earliest
concentrations of outbreaks, eventually leading to a nationwide response at the
federal level.
Here where I live, in
Massachusetts, we have been one of the most highly impacted states after
Washington, New York and California. As I am writing, most of our schools and
colleges are closed, restaurants and bars are closed, state and municipal
offices are closed, shopping malls and most retail stores are closed, and
hospitals and nursing homes are closed to visitors. Gatherings of 25 or more people have been prohibited,
including concerts, sporting events, theaters, conferences (including at least
one campground conference), and even church services and faith-based
gatherings. The terms “social distancing”, “self-quarantine”, and “sheltering
in place” have been added to our everyday vocabularies.
The Campground Industry
The impacts upon private
campgrounds are evolving on a daily basis. Let us start by looking at the
positive side of the situation. First of all, Americans are coming together
like we have not in years, sharing a common determination to overcome the
current crisis. Secondly, we will continue to find a healthy refuge in outdoor
environments. If nearby public parks and campgrounds are closed as a result of
the pandemic, you may be able to fill a new demand. Thirdly, campgrounds are
not being hit nearly as hard as businesses in many other industries, including
airlines, cruise lines, travel agencies, hotels, tourist attractions, and
restaurants. In that sense, we can count our blessings. On the other hand, many
campground owners have told me that their cancellations have exceeded their
reservations in recent weeks. Fear and uncertainty do not drive consumer
confidence and spending, and families who are facing layoffs at work no longer
have discretionary income to spend on vacations.
Your
Response
Keeping in mind that we are
all in this together, it is time to waive your usual cancellation policies for
the time being. Do not even ask questions. The tide will turn, and people will
return to the businesses that treated them honorably and respectfully. Next, go
out of your way to let your customer base know that you care about their health
and well-being and that you are introducing new measures to ensure their
safety. It is time for every business to introduce a personalized Coronavirus
Statement. This statement should be thoughtfully written and personalized for
your own unique situation. Outline any of your recreational amenities or
services that will be temporarily closed, curtailed or limited, stressing how
those actions have been taken in the interest of your guests and employees.
Outline the measures that you have taken to maintain cleanliness in your
facilities that remain open, including your store, restrooms, snack bar,
playground, fitness room, and rental accommodations.
When you have carefully
drafted your statement (and run it by
other sets of eyes for proofreading!), share it on social media and post it
to the Home page of your website, updating the statement as necessary, as the
crisis evolves and hopefully subsides. To post this statement to your website,
you can include it as text near the top of your Home page; however, you may
want to consider the alternative of providing a prominent link to a PDF file
that people may download, particularly if your statement is somewhat lengthy.
Another advantage to the PDF option is that it will avoid having text related
to the Coronavirus be what search engine robots are indexing, rather than text
that outlines the features of your park. One word of caution is to ensure that
your PDF file is tagged and ADA compliant. (Remember
when ADA compliance was one of your biggest concerns a few months ago?)
The
Impact Varies
Some campgrounds will be
impacted more than others. If your park’s primary selling point is that it
offers a remote natural setting, you might be offering the type of escape that
will be sought by an even wider group of people. If your campground has
proximity to local, state or federal parks that remain open and offer
recreational opportunities, try to capitalize upon that positive situation. On
the other hand, if your guests primarily stay at your park due to its proximity
to one or more major tourist attractions that have been closed as a result of
the pandemic, you will need to improvise a more creative approach. Similarly,
if people have historically flocked to your campground to partake in a
well-organized activity program, you may need to find alternatives that will
involve smaller gatherings and greater opportunities for social distancing. You
may want to even rethink or rename certain events. Just this morning, I found
myself updating the activity schedule on a campground website, and the annual
“Hooray! School’s Out for the Summer” weekend suddenly took on a different and less
jovial connotation, at a time when most schools are closed for either the next
two weeks or the entire semester. Prepare to adapt and modify your schedule.
Another impact will involve international travelers who would normally vacation in the United States. Many campgrounds have seen a steadily increasing volume of traffic from overseas, and many campgrounds in the Northeast rely upon an annual influx of guests from Canada. Travel from Europe is currently banned, as is traffic in both directions at the border crossings between the United States and Canada. It almost makes one long for the days when the greatest impediment to Canadian visitors was an unfavorable currency exchange rate! On the flip side, gasoline prices are currently at historic lows, which will help to encourage domestic travel.
The bottom line, as I sit here in mid-March, is that we have no idea where the chips will have fallen come Memorial Day and beyond. This may be the summer when people more than anything need to escape to the outdoors and experience a natural setting. It could even be that simply sitting around a campfire could be exactly the cure that the doctor has ordered.
This post was written by Peter Pelland
Tags: Coronavirus, COVID-19 Posted in Business Ethics, Marketing Strategies, Uncategorized |
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