It is no secret that, in general, campgrounds weathered the recent COVID-19 pandemic quite nicely. In fact, many park owners were able to raise prices in response to the combination of the low supply and higher than ever demand for campsites. While most of those customers, including many first-time campers, would like to continue their pursuit of the camping experience, another potential roadblock is now in play.

With the global economy teetering on recession, the biggest consumer headaches are skyrocketing mortgage rates, food costs and fuel costs, with fuel costs most directly impacting the desire to camp. According to a late June 2022 CBS News report, the people who purchased new RVs during the pandemic are not yet being dissuaded from engaging in their camping pursuits, though they are likely to seek refuges that are closer to home in order to trim their travel expenses. Another recent Associated Press report indicates that consumers are now facing what is referred to as “demand destruction” when it comes to filling their vehicles with gasoline or diesel at what are now all-time record high prices per gallon.

Particularly for campground owners with parks that have historically offered overnight stops for cross-country travelers, or parks that are adjacent to off-the-beaten-path tourist destinations, now might be a good time to consider taking preemptive actions to ensure a steady flow of business. According to Forbes Magazine, many companies are offering fuel incentives to their employees as they return to their office commutes after months of working from home. Why not rethink that strategy and offer minor subsidies to your customers who cannot reach you without filling their tanks? One of my suggestions is to look into the use of prepaid fuel cards as a customer incentive that will help campers to justify traveling that extra mile.

Gift Card Rewards

We are all familiar with gift cards, probably purchasing them as last-minute gifts for friends and relatives. Most are purchased for retail merchants at gift card kiosks in supermarkets, convenience stores, and shopping malls. What I am suggesting is the use of cards that are purchased in bulk, perhaps even customized with your business name or logo, that are specifically for use at the fuel pumps of a major oil company that has a station near your place of business.

Everybody responds to incentives, and there is no incentive as effective as a perceived rebate. Let’s say you have a Shell Oil station down the road. Depending upon your available inventory — and this ties in directly to dynamic pricing — you could offer a $20.00 Shell gift card to people who camp mid-week, camp on a historically slow weekend, or arrive on a Thursday night for an extended weekend. To be effective, the card must have a significant perceived value (I suggest $20.00), but that incentive can be much more effective than a corresponding drop in dynamic pricing. We all know that it costs much more than $20.00 to fill a vehicle with gasoline or diesel these days, but that incentive can go a long way toward having a camper choose your park over another, even if it means traveling that extra mile.

There are two types of bulk gift cards that may be purchased. So-called “open loop” gift cards are prepaid Visa or MasterCard cards that may be used anywhere. These, for a significant one-time fee, are the cards that can be customized with your business name or logo. What I am suggesting are “closed loop” gift cards that are specifically used at one business. There are also both digital and plastic gift cards, and my recommendation is the use of the plastic cards. Their tangibility gives them greater perceived value. Of course, you need to keep these stored in a secure location within your office, treating a stack of $20.00 gift cards the same way you would treat a stack of $20.00 bills.

How to Purchase Bulk Gift Cards

The companies that specialize in selling bulk gift cards earn their income from fees that are paid by the merchants. Merchants can afford to absorb their fees because cards that are either unused or only partially redeemed can represent a major source of income. They also realize that somebody redeeming a $20.00 gift card is likely to make an additional purchase, another source of income. Most cards will also have an expiration date, so be sure to be aware of that timeframe both when purchasing bulk cards and when distributing them to your customers. The advantage to buying these cards in bulk is to circumvent the usual 20 card limit when purchasing gift cards at the retail level. In addition, though most cards are purchased at face value, some merchants may even provide small discount incentives, although others may charge a premium (best to be avoided) and some cards may be on back order due to high demand.

Two online merchants that sell bulk gift cards are PerfectGift.com and BlackhawkNetwork.com. When it comes to oil company gift cards, both of these merchants represent the following companies: 76, ARCO, BP/Amoco, Chevron, Circle K, Conoco, ExxonMobil, Gulf, Sheetz, Shell, Sinclair, Speedway, Sunoco, Texaco, and Wawa. In addition, Blackhawk represents Marathon and Phillips 66. There are other smaller bulk card merchants, such as GiftCardPartners.com which only represents Sheetz, Shell, Speedway, and Wawa.

Take This to the Next Level

If you decide to pursue this type of incentive program, try to arrange an expanded arrangement with your local merchant. A smart gas station operator will realize that it takes more than $20.00 to fill a tank on a motorhome or a big pickup truck, and that you are essentially sending them business. Your mutual customer is likely to purchase not only more fuel but items from a full range of convenience and food items that might be offered. This local merchant whose business you are promoting should be willing to display your brochures or rack cards on his counter, and he should be a prime prospect to advertise in your guest guides. In fact, if there is more than one brand of fuel available within easy reach of your business, the willingness to participate might dictate which brand you choose to associate with your business.

Five years ago I encouraged campground owners to take a close look at the tasting events at wineries. I wrote how wineries – and small wine producers in particular – rely upon tastings as they seek new and expanded markets, and how many campgrounds share the same marketing objectives.

I wrote how tastings meet one of several objectives:

• To introduce wine enthusiasts who are familiar with a brand, have previously purchased its wines, or who are likely to purchase (often in case quantities) new vintages that they might enjoy.
• To introduce a winery to connoisseurs who might be unfamiliar with its offerings.
• To welcome casual wine consumers who are still refining their tastes and who will appreciate the time that is spent to help them to broaden their palates.

As opposed to the free tastings that were commonplace a generation ago, most tastings today are fee-based. Nonetheless, wineries know that their costs of running tastings are roughly twice the actual cost of the wines that they pour. As is usually the case, smaller wine producers have far greater costs and competitive challenges; however, what they also understand is the old adage about having to spend money to make money.

My wife and I recently spent a week touring wineries and attending a variety of mostly private reserved tasting experiences in the Sonoma Valley of California. Fortunately, we were there about two weeks prior to the Kincaid Fire that essentially shut down the county for several harrowing days, when the fires and destruction from the 2017 Tubbs Fire were still in the forefront of most people’s memories and far too evident in Santa Rosa and other parts of the county.

The key to wine events these days – whether in Northern California or at small local wineries that might be closer to your place of business – is to provide visitors with a variety of options. Yes, you can still belly up to the bar with ten or twenty other people for a $20.00 flight of tastings consisting of two ounce pours, usually on a walk-in basis. There are also wineries that schedule weekend entertainers, with outdoor seating to accommodate several hundred people who will buy their wines by the glass or the bottle. Many wineries will also offer pairing options with charcuterie, cheese, or fruit plates, an ancillary source of income.

Regardless of the level of tasting, an important component is the conversation between a knowledgeable person pouring the wine and his guests. People are asked for their thoughts and opinions regarding the taste, flavors that come to mind, and initial impressions. The discussions are always friendly, never condescending, and encourage a sense of discovery.

Our favorite events from our recent vacation week were private 2-3 hour tours and tastings that were reserved weeks in advance. These included a black glass tasting at Matanzas Creek Winery; a Meritage Blending Experience at Dry Creek Vineyard, where we carefully tasted, blended, and bottled our own bottles to take home; a truly behind the scenes tour at Francis Ford Coppola Winery; a private tour and lunch at Benziger Family Winery, led by Jill Benziger; a private tasting of reserve wines at Ledson Winery & Vineyards; and a Pinzgauer Excursion (on a six-wheel European military vehicle) at Gundlach Bundschu Winery and Vineyards, guided by Rob Bundschu. Some of these remind me of my visit to Robert Mondavi Winery back in the mid-1970’s, when Michael Mondavi was pouring the wines at the tasting.

Not everyone who attends a wine tasting makes a purchase of even a bottle of wine, let alone a case or more. That said, most of these pricey private events are tailored toward selling either wine club memberships or cases of reserve wines that are only available at the winery itself but that can currently be shipped directly to consumers in 43 states. Although there is no pressure to purchase (because your tasting fee will already cover all costs), the hosts are earning commissions on sales.

A Campground’s Perspective

Campgrounds can also explore new ways of reaching out to their customers, generally translating into three groups of people who are very similar to the people who attend wine tastings:

• Your existing campers, who have stayed with you through the years (and sometimes generations!) but who still need to be reminded that you care, that you continue to offer new activities or amenities, and that there is no reason for them to consider camping elsewhere.
• Campers who have never stayed at your park and who need to meet you and learn about what you have to offer.
• Non-campers who are just exploring and getting introduced to the concept and need some assurance that they will enjoy the experience.

Either in your early or late shoulder seasons, how about holding a Camper Appreciation weekend, open house, or another special event? How about a private event for your seasonal campers, possibly even being held off-site, where they will be given the opportunity to renew their seasonal contracts for the following year? Make any such events significant and special, with genuine costs incurred on your part. If possible, make it a free event; otherwise, keep the cost to a bare minimum. I am not talking about a potluck dinner, where the people attending are asked to provide the food and you simply provide soft drinks and snacks! This should be a truly memorable marketing opportunity for your park. You may want to consider requiring reservations or capping the total number of people who attend at the number that you can comfortably accommodate.

Keep in mind that not everybody staying at your park is looking for the lowest cost experience. Many are willing to pay for a special and somewhat exclusive experience that has value added. What can you offer that is equivalent to the access to reserve wines that are exclusively available at a winery?

Whether or not you offer a loyalty card, you know the people who are your frequent and most profitable guests. Try to reward them and take them to the next level! Can they be encouraged to become seasonal campers or to stay even more frequently with a simple incentive or two?There are many ways to expand your reach as you seek to introduce new people to your park and to encourage existing campers to become even more profitable. Take some examples from the wine industry and use them to your advantage!