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Exceeding Expectations: A Winning Strategy in the Recreation Business

by Bob T. Epstein

At a recent KOA (Campgrounds of America) National Conference in the Orlando it became quite obvious that there was more going on than backslapping, convivial conversation, good food and good vibes.

There was a direct, as well as an undercurrent of smart business operations and principals being promulgated and carried through with by the hundreds of KOA owners, their managers and the KOA franchise staff and support folks.

As KOA President Jim Rogers expressed in his opening remarks,  “The KOA International Convention is all about fellowship, fun and finding ways to capture Disney ideas that can apply to your KOA. Disney is World Class, and the gold standard for extraordinary guest and,” he emphasized, “employee satisfaction, loyalty and retention in terms of service, and stopping at nothing to achieve this relationship.” The theme of Rogers’ remarks and their meanings was carried through the entire conference.

Rogers introduced Joel Strack, a 20-year Disney veteran and part of the Disney management team. Strack, who is considered a first class presenter for the Disney Institute, spoke on the theme of “Quality Service, Disney Style.” 

Behind the magic, the mouse ears and Cinderella’s castle, there is a serious, for-profit business called Disney. Strack expressed a belief that the serious, for-profit KOA camping industry can learn a lot from Mickey Mouse. When asked about the major similarities between Disney and KOA, Strack countered with the question: “Do you think it is a coincidence that each time you leave a Disney attraction, you pass through a Disney store?”

“Similarly, when you check in or check out at a KOA, there is a store adjacent to the reservation and check-in counter,” he said. He said that Disney’s creed, according to CEO and Chairman Michael Eisner, has been to follow “the muse of originality and the taskmaster of quality.”

KOA participants at Strack’s presentation were treated to some excellent concepts that showed how a diverse and creative environment is key to keeping their organizations productive, energetic and innovative.

Some 51,000 employees work at Disney and there are more than 500 KOAs nationally and internationally; representing a direct correlation between what Disney is all about and what KOA is to so many people. Both entities can be proud that they offer first class get-aways where families can share high quality recreational time together.

For the “KOA University”, Strack explained that most things are common sense, but not in common practice. One big similarity between Disney and KOA, he said, is dealing with real business issues and profit - with a good clean
profit always in mind.

Competition is a factor for any business when it comes to the final bottom line and both businesses face the same competition that Disney and KOA represent. But the single most important factor, according to Strack, is consistency - consistency in the best service that can always be counted on to bring guests back again and again. But consistency is a key to success only if is always implemented and not just given lip service, he said.

Of course that takes lots of planning and there are mistakes made all the way around, according to Strack. Building and learning from these mistakes and overcoming them, however, helps hone the final product to a tack sharp, consistent approach for reaching the star of excellence for both guests and employees. Excellence is in this and all other businesses exceeding the expectations of that circle of good business, good service, and good feelings all the way around!

Just a few of the competitors for Disney’s business are Universal Studios, Busch Gardens, the beaches of Florida, other sport venues, Cape Canaveral, year-around schools, hurricanes, Las Vegas, staying at home, state and national parks and, of course, KOA. And both Disney and KOA share similar competitive issues – international travel, unemployment, and common, everyday problems like a family making a choice between putting a new roof on the house or going on vacation.

Both companies have unique business environments and have many different philosophies save for one - the desire of exceeding expectations and always working to do this so that guests return again and again.

Paul J. Eagles, in his article on Understanding Sustainable Tourism in Good Sam Parks, in The Good Times Newsletter, explains that, “Understanding sustainable tourism is, but if not, should be an important topic of interest to campground owners such as KOA and other RV parks and camping businesses.” (Disney is also a campground business.)

“Many market strategies fail to appeal to the potential customers they seek to attract and hold on to. Recreational marketing must be based on proper identification of several target segments which should select the promising segments and reject those that are not, after first determining potential campers, RV’rs, eco-tourists, car campers and adventure traveler niches.” 

When developing and designing the many blends that touch on, and satisfy the individualized needs, behaviors and desires of these niches, a good understanding of the niche markets is extremely important.

Parks and recreational marketing is vastly different from the marketing of manufactured goods. Ten concepts and principles help define the uniqueness of the outdoor product compared to a general or typical consumer product.  Strack and Eagles both feel the following key aspects (outlined by Eagles), should be considered in order to develop an understanding of the outdoor market. Theses principles express the special and unique quality product compared to all other consumer products:

1. Outdoor recreation experiences are consumed on site, well away from home.

2. Travel costs to the site often far exceed the costs at the site.

3. It is a package of facilities and programs that attracts people to a site or area.

4. Recreation experiences are ephemeral; experiential they cannot be kept or possessed as other products, except as memories.

5. The production, delivery and consumption of the recreation product occur simultaneously.

6. The consumer (guest) is actively involved in the production of the recreational camping experience, both their own and those of others.

7. Poor recreational experiences cannot be returned for a refund.

8. Recreational sites and experiences are difficult to assess before purchase; therefore, word-of-mouth from friends and family is an important choice determinant.

9. Recreational products cannot be stockpiled during periods of low demand and sold during times of excessive demand.

10. Important aspects of the recreation experience occur before and after the on-site participation.

As fuel prices spiral and then fluctuate only those businesses which have developed a loyal following by meeting and/or exceeding the expectations of their guests time and again and have consistently offered the highest quality experience will continue to thrive.

According to David J.  Humphreys, president of the Recreational Vehicle Industry Association “The RV industry continues to be a force in the economy, adding jobs and expanding factories right here in America despite the high gas prices in the 2004.” This bodes well for the entire RV and camping industry as these units have to alight somewhere, and the best camping and RV parks are in for a boom time in 2005.

Some interesting statistics and long term trends from John Hope-Johnstone, editor of Good Sam Parks 2004 Winter issue of The Good Times magazine summarizing Meredith Corporations Family Vacation Study shows that the number of family trips is up 18 percent from 1999. It seems that 68 percent of American families took their most recent vacations using their own auto/truck or RV. Economizing was the name of the game with 62 percent purchasing food at grocery stores rather than going out to restaurants. These folks also took their families to free attractions rather than ones charging admission.  Ninty-one percent of the vacationers rated “value” and a variety of things to do as being most important in choosing their vacation spot.

Most popular types of family vacations were in the following order and percentages:

So if your RV Park is in a small town on the ocean with a nice beach and a terrific historical site… WOW! Your park has it made. However for the rest of the real world RV and camping parks take to heart the concept of quality service and always exceeding expectations and this will help your business thrive as well.