Introduction
Pricing is one of the most impactful decisions you'll make as a campground owner. Price too high, and sites sit empty. Price too low, and you leave money on the table—money that could fund improvements, staff wages, or your own livelihood.
The good news: pricing isn't just a guess. You can use data, strategy, and market analysis to set rates that maximize both occupancy and revenue. This guide shows you how.
Understanding Your Costs
Know Your Floor
Before setting prices, understand your minimum:
Fixed costs (don't change with occupancy):
- Property taxes
- Insurance
- Loan payments
- Basic staffing
- Utilities baseline
- Maintenance reserve
Variable costs (increase with bookings):
- Utilities per site
- Cleaning/turnover
- Materials/supplies
- Credit card processing
Calculate your break-even:
Example:
Annual fixed costs: $200,000
Annual variable cost per site-night: $8
Sites: 50
Operating days: 200
Break-even occupancy at $50/night:
$200,000 / (200 days × 50 sites × ($50 - $8)) = 47.6%
Your minimum rate should cover variable costs plus contribute to fixed costs.
Market Research
Competitive Analysis
Research campgrounds within your competitive radius:
What to collect:
- Nightly rates by site type
- Seasonal pricing variations
- Weekend vs. weekday pricing
- Special pricing (holidays, events)
- Amenities included
- Occupancy indicators (sold out, availability)
Where to look:
- Campground websites
- Google Business listings
- Campground directories (KOA, Good Sam, Hipcamp)
- Call and ask (yes, really)
Positioning Decision
Decide where you want to sit relative to competitors:
| Position | When It Makes Sense | | ---------------------- | -------------------------------------------------- | | Premium (15-30% above) | Superior amenities, location, or experience | | Market rate | Comparable offerings | | Value (10-20% below) | Fewer amenities, building momentum, newer property |
Pricing by Site Type
Differentiate Your Inventory
Not all sites are equal. Price them accordingly:
Typical differentials:
| Site Type | Base | Premium | | ------------------------------------------ | ------------- | ------- | | Basic tent (no hookups) | $25-35 | — | | Electric only | $35-45 | — | | Water/Electric | $40-55 | — | | Full hookup (W/E/S) | $50-70 | — | | Pull-through | Base + $5-10 | — | | Premium location (waterfront, view, level) | Site + $10-25 | — | | 50-amp service | Site + $5 | — | | Cabins/glamping | $100-250 | — |
The "Good/Better/Best" Approach
Offer tiered options:
- Good: Basic sites at value price
- Better: Standard sites with full hookups
- Best: Premium sites with location perks
This captures different guest segments and creates upsell opportunities.
Seasonal and Dynamic Pricing
Seasonal Tiers
Most campgrounds should have at least three rate tiers:
| Season | Rate Approach | | ----------------------- | ----------------- | | Peak (summer, holidays) | Maximum rates | | Shoulder (spring, fall) | 10-20% below peak | | Off-season | 20-40% below peak |
Day-of-Week Pricing
Weekend demand exceeds weekdays at most campgrounds:
- Friday/Saturday: Premium (+10-20%)
- Sunday-Thursday: Standard or discount
Demand-Based Adjustments
For sophisticated pricing:
- Raise rates as occupancy increases
- Lower rates as date approaches with low occupancy
- Premium pricing for local events and holidays
[LINK: operations/02-dynamic-pricing-campground] Complete guide to dynamic pricing implementation.
Value-Based Pricing
Price What You're Worth
Don't just match competitors—justify your rates with value:
Amenities that support higher pricing:
- Pool or lake access
- Full hookups
- WiFi quality
- Cleanliness reputation
- Level, paved sites
- Location to attractions
- Staff friendliness
- Modern facilities
Calculate your value advantage: If you offer pool, WiFi, and cleaner facilities than the $50/night competitor, $60-65 isn't just justified—it's expected.
The Perception Factor
Guests perceive value differently:
- Too cheap can signal "something's wrong"
- Too expensive without visible value creates resentment
- Appropriately priced with visible value creates satisfaction
Testing and Adjusting
Start with Hypothesis
When unsure, test:
- Set your best-guess price
- Monitor booking velocity and occupancy
- Adjust based on results
Signs You're Priced Too Low
- Selling out weeks/months in advance
- No price-related complaints
- Guests say "what a great deal!"
- Lower revenue despite high occupancy
Action: Raise rates gradually (5-10% at a time).
Signs You're Priced Too High
- Low occupancy while competitors are full
- Frequent price complaints
- Guests mentioning competitor pricing
- Last-minute discounting required to fill
Action: Evaluate value proposition or adjust rates.
The "Goldilocks" Indicator
Ideal state:
- Healthy occupancy (70-85% peak season)
- Some sites available for last-minute bookings
- Guests comment on value (not "cheap")
- Revenue per available site-night is strong
Communicating Your Pricing
Transparency
Display pricing clearly:
- On your website (specific rates, not just "starting at")
- At time of booking
- In confirmation emails
Hidden fees and surprises create resentment.
Justifying Premium Rates
When guests question higher rates:
"We invest in keeping our facilities in excellent condition, providing strong WiFi, and maintaining the peaceful environment our guests love. We think you'll find the experience worth it."
Value Messaging
Help guests understand what they're getting:
Instead of: "$55/night"
Try: "$55/night includes full hookups, WiFi, pool access, and spotless facilities."
Pricing for Specific Situations
Group Reservations
Groups expect discounts:
- 10-15% for 5-9 sites
- 15-25% for 10+ sites
[LINK: operations/10-group-reservations] More on group pricing strategies.
Extended Stays
Weekly and monthly rates:
- Weekly: 10-15% discount (pay for 6, get 7)
- Monthly: 30-50% discount off nightly
Last-Minute Bookings
Decide your approach:
Option A: Hold rates until check-in (protect RevPAR) Option B: Discount 24-48 hours out to fill sites
Repeat Guests
Consider loyalty pricing:
- Small direct-booking discount
- Loyalty program member rates
- Return-guest promotions
Revenue Management Basics
RevPAR (Revenue Per Available Site-Night)
The key metric combining rate and occupancy:
RevPAR = Average Daily Rate × Occupancy Rate
Example:
$50 ADR × 70% occupancy = $35 RevPAR
$60 ADR × 60% occupancy = $36 RevPAR
Higher rate with slightly lower occupancy can yield
higher revenue.
Don't Chase Occupancy at Any Cost
100% occupancy at rock-bottom rates may be worse than 80% occupancy at healthy rates.
Goal: Maximize RevPAR, not just occupancy.
Key Takeaways
- Know your costs — Never price below your floor
- Research competitors — Understand the market you're in
- Differentiate by site type — Premium sites deserve premium prices
- Adjust seasonally — Match demand with pricing
- Test and iterate — Pricing is never "done"
Conclusion
Pricing is both art and science. The science involves understanding costs, analyzing competitors, and tracking performance. The art involves understanding guest psychology, communicating value, and making strategic decisions about where you want to position your campground.
Start with solid research, set thoughtful initial rates, and adjust based on results. Over time, you'll develop pricing instincts that maximize both occupancy and revenue.
[LINK: growth/11-upselling-strategies] Learn how to increase revenue beyond the nightly rate.
Keepr makes pricing management easy with seasonal rate automation, site-type pricing, and revenue reporting. Optimize your pricing at campreserv.com