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KOA price gouging

Yahoo Message Number: 70112
Yesterday I called the KOA in Cheyenne, WY to reserve a space for Cheyenne Frontier Days at the end of July. Because this is a popular and well attended event they boosted their price to over $91/nite. I understand a premium charge at certain times but this is, IMHO, price gouging at its very best. Thought anyone interested in the event ought to know.
Lyle Wetherholt
04 Intrigue 11740

Re: KOA price gouging

Reply #1 –
Yahoo Message Number: 70115
Lyle,

We hear you and it's the American way. If they can, they will, if you have more demand for your product raise the price.
Seems like every event I book is in prime season; FL Keys

Sturgis MC rally
4th of July Branson

winter in Calif or southwest FL. AZ
For example Sturgis over 200% over reg fee and guess what ? sold out during rally weeks.

AL

00 affinity

Re: KOA price gouging

Reply #2 –
Yahoo Message Number: 70116
Just find a little non-KOA a few miles away and that will probably cut the cost to something reasonable.

Ray

2000 Intrigue 11040

Re: KOA price gouging

Reply #3 –
Yahoo Message Number: 70117
Quote
Quote from: Travman100"

Ray,

I did that. Terry Bison Ranch RV Park, 7 miles from Cheynne, $46. They also put a premium price on their park but a reasonable one.
Lyle Wetherholt
04 Intrigue 11740
> Just find a little non-KOA a few miles away and that will probably cut the cost to something reasonable.

Ray

2000 Intrigue 11040

Quote from: Lyle"

>

> Yesterday I called the KOA in Cheyenne, WY to reserve a space for Cheyenne Frontier Days at the end of July. Because this is a popular and well attended event they boosted their price to over $91/nite. I understand a premium charge at certain times but this is, IMHO, price gouging at its very best. Thought anyone interested in the event ought to know.
> Lyle Wetherholt
> 04 Intrigue 11740
>

Re: KOA price gouging

Reply #4 –
Yahoo Message Number: 70118
Having spent my entire career in the resort business (hotels, lodges, RV) I would like to offer a different perspective on this issue. I would speculate that Cheyenne, WY has about a 100 day peak tourist season, with Frontier Days being the main draw. I would also speculate that annual occupancy for this park would likely not exceed about 35% (total occupied sites divided by # sites times 365). Break even cash flow for a property with any debt service is typically around 40% annual occupancy. Many RV park owners barely break even and usually work their butts off. The smart operators use Yield Management techniques that maximize nightly rates during high demand periods. I wish them well.

Dick Bradley

04 Intrigue #11830

Re: KOA price gouging

Reply #5 –
Yahoo Message Number: 70119
Quote
Quote from: countrycoachbrad"
Dick,

Well said. A lot of assumptions but well said. Some others have commented about supply and demand and I agree with what they said also. But, the other side of the coin is the demand side. For my part there will be no demand during the event or after the event. My demand will cease whenever I think a service or product is unreasonably taking advantage of me. So, next time through Cheyenne when they could use my business to up their 35% rate that you quote I'm afraid I just won't oblige. In the end the consumer wins.
Lyle Wetherholt
04 Intrigue 11740
> Having spent my entire career in the resort business (hotels, lodges, RV) I would like to offer a different perspective on this issue. I would speculate that Cheyenne, WY has about a 100 day peak tourist season, with Frontier Days being the main draw. I would also speculate that annual occupancy for this park would likely not exceed about 35% (total occupied sites divided by # sites times 365). Break even cash flow for a property with any debt service is typically around 40% annual occupancy. Many RV park owners barely break even and usually work their butts off. The smart operators use Yield Management techniques that maximize nightly rates during high demand periods. I wish them well.

Dick Bradley

04 Intrigue #11830

Quote from: Lyle"

>

> Yesterday I called the KOA in Cheyenne, WY to reserve a space for Cheyenne Frontier Days at the end of July. Because this is a popular and well attended event they boosted their price to over $91/nite. I understand a premium charge at certain times but this is, IMHO, price gouging at its very best. Thought anyone interested in the event ought to know.
> Lyle Wetherholt
> 04 Intrigue 11740
>

Re: KOA price gouging

Reply #10 –
Yahoo Message Number: 70124
Let's see... I bet Ski Resorts charge more in the winter than in the summer???? What about Beach Towns, probably charge more in the summer than in the winter? Is that price gouging as well?
In GI Towns certain types of businesses charge more at payday then they do 2 days before payday....
If they charge too much they will not fill up and will have to adjust or fail. Also, expenses go up during certain events or heavy crowd draws as well. Security, lighting, employees, trash removal, etc, etc so it not all profit.

Mikee

Re: KOA price gouging

Reply #11 –
Yahoo Message Number: 70129
Gouging is gouging, no matter the rationale for doing so. I avoid KOA's and other high overhead campgrounds, instead stay at mom and pop operated campgrounds where they also have to make a profit to stay in business but they also have an ethical approach to business. The non-franchise locations are usually better run and have friendlier management.

Ray

2000 Intrigue 11040

Re: KOA price gouging

Reply #12 –
Yahoo Message Number: 70132
Had to jump in...Gordo here.

I'm not a huge fan of any KOA. However they do have their place in the RVing world. Maybe due to the fact I live in California, the KOA quoted price seems in line for an event weekend. Power use and trash go way up during event weekends. Come on how many of you have had your front door open with A/C or heat-pumps units humming along? Extra trash cost big dollars to get rid of. Water is most likely metered. Don't believe me? Have you checked your own home water/sewer/garbage utility bill lately? Mine just went up again for the 3rd time in 2 years. All this aside... Labor cost to pick up after Joe Q Public adds up fast. Hello... How many of you have cut your RV space corner a tad bit tight and ran over the lawn? Someone has to pretty it all up before the next customer comes a calling. This stuff cost money!
I understand peoples unwillingness to fork out the extra green backs when event come along. Why not switch to a different nearby RV park? Or join the KOA club 10% discount card for 25 bucks a year.
What I'm not hearing here? The freaking cost of fuel to get your Country Coach to the RV park! Here in good old Sacramento, Ca. I just filled up @ 4.39 for Chevron Diesel. Could have stayed at that KOA for 4 days and enough left over to eat steak at every meal!
I know I'm a bit younger(54) then most on this list, thus able to gain extra dollars without taking from the old nest egg. It's a bear to see ones nest egg dwindle due to plan old living. Worse when you feel gouged. Life ain't fair sometimes and lets face it... Getting older ain't for sissy types! Buck up and enjoy the fact you don't have to leave the RV park due to no funds in your pocket.

Gordo

Sacramento, Ca.

99 allure 30344 that runs like a champ!

Re: KOA price gouging

Reply #13 –
Yahoo Message Number: 70134
Gordo where have you been ? Just one of your big fans and always enjoyed reading your posts.
I sure agree with your comment about the nest egg. Lets face it, just staying in the RV travel mode is a commitment and I do enjoy travel on what's over the next hill.

AL

00 affinity

Re: KOA price gouging

Reply #14 –
Yahoo Message Number: 70137

Hey, I think I picked up a case of that while in-port in Subic Bay in 69............

Dave

aka Billy Byte (trusty hound)
2000 Allure #30443

Re: KOA price gouging

Reply #15 –
Yahoo Message Number: 70138

you will pay more than that a day for over a three month period in Key West......
If that's where you really want to be, you can always dry camp.

Dave

aka Billy Byte (trusty hound)
2000 Allure #30443

Re: KOA price gouging

Reply #16 –
Yahoo Message Number: 70139
And the other side of the coin. . . .
It is your HOBBY and their living.. Different motives... Before you flame me Think about this.

Mikee

Re: KOA price gouging

Reply #17 –
Yahoo Message Number: 70140
Quote from: Lyle"

> Yesterday I called the KOA in Cheyenne, WY to reserve a space for Cheyenne Frontier Days at the end of July. Because this is a popular and well attended event they boosted their price to over $91/nite. I understand a premium charge at certain times but this is, IMHO, price gouging at its very best. Thought anyone interested in the event ought to know.
Lyle Wetherholt
04 Intrigue 11740

Lyle,

You did better than I did three weeks ago. I tried booking the Cheyenne KOA for some days during Frontier days and they were totally booked. You are lucky you could find any space at all during Frontier Days. I booked 15 miles south of town.

Re: KOA price gouging

Reply #18 –
Yahoo Message Number: 70143
in 2007 our Hudson chapter put on the Hudson Car National meet I was asked to ffind camping in the Auburn, In. I found a KOA close taked to them about a RATE with a password. At that time 8mo. before I made my reservation, called 3 mo. before the date. When I got there on time i was greated with I SURE HOPE YOU AREN'T WHO I THINK YOU ARE. They had given away my sight, I had to work early the next day setting up our meet but no i had to move the next day after the people that they had given my sight to left. I would park in the road side park before I will ever go to KOA again. They all S---...Bob '02 Magna6028

Re: KOA price gouging

Reply #19 –
Yahoo Message Number: 70144
Ray,

There are many definitions of "gouging" in the dictionary. First is "cut or force something out roughly or brutally". Second is "Informal overcharge/swindle". Most business people would resent either definition when attempting to make a living in the service industry. To imply that franchise businesses are "unethical" is irresponsible and ignorant on your part. Many RV park owners/operators purchased a franchise in order to be competitive and hopefully to generate more business. The "better run and friendlier management" description may just be an attitude issue on your part.

Dick Bradley

04 Intrigue #11830

Re: KOA price gouging

Reply #20 –
Yahoo Message Number: 70146
Guys, This thread is getting a little boring.

First law of being in sales: 'Charge what the market will bare'. Works every time. End of story.

Have a great day.

David '06 Allure

Re: KOA price gouging

Reply #21 –
Yahoo Message Number: 70148
It's not uncommon for a desk person to take personal cash if offered to bump a reservation in a tight market BOB

Re: KOA price gouging

Reply #22 –
Yahoo Message Number: 70149

We operate a campground in the summer and for the weekends we hold a site until late or even Sat. just in case there is a reservation screwup. It's taboo for someone to come in with a res and not get a site. Thats just good business.

Dave

aka Billy Byte (trusty hound)
2000 Allure #30443


From: "bobozich@..." To: Country-Coach-Owners@yahoogroups.com Sent: Wed, April 13, 2011 9:38:00 AM Subject: Re: [Country-Coach-Owners] Re: KOA price gouging

It's not uncommon for a desk person to take personal cash if offered to bump a reservation in a tight market BOB

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