Asking for money upfront can be tough.
In the campground/RV park business, it has almost been taboo to ask for full payment upfront—although the hotel and airline industry have been doing it for years.
Here are 3 reasons why you should at least consider taking payment upfront at your campground:
1. Increase cash flow for your business
This may seem like an obvious reason, but taking full payment upfront gives you cash sooner. If you are like most parks across the US and Canada, then your highest grossing months are probably June-August.
Taking payment upfront will better even out your revenue due to the reservations made ahead of time. This increase in cash flow can help in the lean months when preparing for the new season. Also, you’ll earn some interest with the extra money in the bank.
No, this doesn’t mean you have to be there to answer the phones 365 days a year. If you would like to know how online reservations could help your park give CampLife a shout!
2. Fewer cancellations
Having some skin in the game is important. If campers know they will be losing a chunk of the money they spent on their vacation, they will be more inclined to make the trip, regardless of the weather or other factors. Having a strict cancellation policy that makes your campers feel the pinch if they consider canceling is important.
3. Increased store sales
We have all had what I like to call, vacation wallet. Vacation wallet occurs when your wallet is a little looser on spending because you are feeling good and really enjoying your vacation.
Why not make vacation wallet work for your park?
If campers are coming in for the July 4th weekend, but they booked and paid in March, the money that they have spent to visit your park is but a memory. Therefore, their vacation wallet will become even looser at your park store. Better stock up on those sparklers! 🙂
Do you have any thoughts on whether this would work for you and your campground? We would love to hear from you!