MC Fireside Chats - March 6th, 2024

MC Fireside Chats

March 6th Episode Recap In a recent episode of MC Fireside Chats, guest host Mike Harrison, stepping in for Brian Searl, led a compelling discussion with a panel of industry experts, including Sandy Ellingson, Christine Taylor, Scott Bahr, Jeff Hoffman, Mark Koep, and Casey Cochran. As the discussion unfolded, the panelists shared their experiences and insights from various parts of the United States, touching upon the weather conditions and their impact on camping and RVing. This led to an exploration of the upcoming eclipse, with Scott Bahr providing data on the growing enthusiasm among campers and RVers, highlighting the industry’s potential for growth during such events. A significant portion of the conversation centered around the recent partnership between Autocamp and Hilton, which the panelists viewed as a major endorsement for the glamping industry. Casey Cochran emphasized the partnership’s potential to elevate industry standards and attract customers with expectations influenced by their experiences with traditional hotel brands. Mike Harrison, drawing from his background in hospitality, contrasted the community and friendliness found in RV resorts with the impersonal nature of hotels, suggesting that outdoor hospitality offers unique and irreplaceable experiences. The dialogue then shifted to the concept of RVing as a year-round activity, with Mark Koep sharing his experiment with winter RV travel in the northeastern United States. This sparked a broader discussion on the potential for campgrounds to extend their seasons to accommodate RVers seeking off-season adventures, emphasizing the need for infrastructure and services to support winter camping. Revenue management emerged as a critical theme, with the panelists exploring the need for more sophisticated pricing strategies in the outdoor hospitality industry. Sandy Ellingson made a distinction between dynamic pricing and rate yielding, pointing out the necessity for parks to adopt true dynamic pricing strategies that leverage technology for automatic adjustments based on real-time demand. Christine Taylor and Casey Cochran discussed the challenges of introducing new pricing strategies to consumers unfamiliar with dynamic pricing in the context of campgrounds. They noted the resistance from consumers accustomed to static pricing models, highlighting the need for education and gradual adoption of dynamic pricing strategies. Jeff Hoffman shared his experiences teaching revenue management and dynamic pricing at industry conferences. He emphasized the importance of educating campground owners on the benefits of adopting differentiated pricing strategies for weekdays, weekends, and special events. Hoffman expressed concern about major hospitality brands like Hilton entering the campground industry, potentially bringing their advanced operational systems and deep understanding of revenue management. He urged campground owners to begin adopting more sophisticated pricing strategies to remain competitive in an evolving industry. Casey Cochran shared insights on the adoption of dynamic pricing among parks on their system, revealing that a small percentage of parks use dynamic pricing. He advocated for parks to start with simple rules to see the benefits of dynamic pricing without significantly impacting customer satisfaction. Mike Harrison proposed a collaborative effort to educate the industry on revenue management, suggesting a series of webinars or educational sessions. The idea received enthusiastic support, with a focus on making the content accessible and applicable across different PMS platforms. Scott Bahr touched on the importance of accommodations in rural outdoor recreation areas, highlighting a potential growth area for the outdoor hospitality industry. This segment underscored the broader implications of improving hospitality offerings for economic development in rural areas. The episode concluded with a call to action for industry leaders to collaborate on educational initiatives to advance revenue management practices in outdoor hospitality. The participants recognized the challenges ahead but remained optimistic about the industry’s potential for growth and evolution. The discussion highlighted the importance of adapting to new technologies, embracing change, and preparing for the increasing interest from larger hospitality entities, with Jeff Hoffman’s insights adding a crucial perspective on the need for education and adaptation in the face of potential competition from major hospitality brands.