Profit center analysis within private campgrounds

A 1990 study conducted on Wisconsin Association ofCampground Owners assessed which profit centers other thancampsite rentals contributed significantly to campgroundgross revenue. Detailed financial data were collected from86 surveys. Correlation analysis was used to determinewhether site rental, store, recreation, and supplementalservice income contributed significantly to gross revenue.It was found that almost 27% of the total income wasgenerated from sources other than campsite rentals. A rankordering showed overnight campsite rentals with the largestcontribution (73.1% with r2 = .843, p = <. 01) andrecreational services with the least (4.2% with r2 = .390,p = <.0l). Retail store sales was a complementary servicewhich contributed 15.1% with r2 = .560, p. = <.01. Spendingpatterns of campers was compared to profit center revenue.Overnight, seasonal, trailer rental, and cottage/cabin siterental represented a separate segment of camper. It wasfound overnight campers contributed the most revenue supportand best explained the variation in gifts, wood/ice, andvending profit center revenues with r2 values > .750, p =<.01. Seasonal campers contributed the least profit centerrevenue support, although gifts were important as indicatedby r2 = .520, p = <.01. Understanding the relationship ofspending patterns and profit center revenue would aidcampground operators in developing effective profit centers.