Welcome to the AOS Family

As we close 2019 and look toward 2020, we are excited to welcome two great parks into our portfolio.

Lakeview RV in Tennessee is a beautiful property located in Bluff City TN near the Bristol Motor Speedway. This property boasts 151 full hookup sites, a swimming pool, playground, pavilion, store and laundry.

The new owners and the AOS team are looking to bring some exciting changes to this park. Stay tuned for the new website, online booking, and exciting upgrades.

Our second new park this month is Hidden Ponds RV in South Haven Michigan. We look forward to working with the team there to make this a true destination property -minutes from the shores of Lake Michigan and an easy commute from many of the major populations center of the Midwest.

The AOS team is looking forward to working with these and many more clients in the upcoming year.

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A Very Merry Christmas to All

We at AOS want to take the time to wish each and every one of you a blessed and Merry Christmas!

In the day in and day out hustle and bustle of the year, we fail to mention how much we appreciate the trust that you have placed in us and our team members. We understand how hard you have worked to make your resorts a success, and we want you to know this is not lost on us. We take this seriously and large or small-we treat your parks as if they were our own.

We look forward to continuing to serve you in 2020 to make it a prosperous and successful year.

Wishing you a very Merry Christmas and the happiest of New Years.

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Seeing Into The Future

I am not prophetic, and I hold no mystical powers. However, my team and I stay up to date on industry news, trends, and market analysis. Thus, I have been saying for years-stop rolling out the “You’re Not Welcome Carpet,” to younger travelers and families with kids. Some have listened; some have not.

This week, WSJ put out an interesting article dealing with the over production by the manufacturers. Hidden within that article were the following statements:

The recreational-vehicle sector has been highly cyclical, but recently ‘glamping’ has brought in younger buyers. A Jackson Center, Ohio, production plant for Thor Industries’ Airstreams. PHOTO: ANDREW SPEAR FOR THE WALL STREET JOURNAL

BySpencer JakabDec. 13, 2019 5:30 am ET

“—younger, more diverse buyers have embraced glamping and #vanlife in the past decade, helping to boost interest in RVs—especially lightweight, towable models.:

‘Once inventories are back to normal, the industry’s marketing dreams could play out. A recent report by Kampgrounds of America shows an ongoing demographic shift. Between 2015 and 2018, for example, the share of households new to camping who were Hispanic doubled and the overall share of nonwhite households new to camping rose to 51% from 40%. The share of campers with children rose to 52% in 2018 from 35% in 2012. Campers who prefer the comfort of an RV or a cabin over a tent rose to nearly half from one-third between 2015 and 2018, says KOA.’

In a blog post earlier this year-and at my 2019 Glamping Conference Speech-I highlighted the importance of these changing trends. We went a step further and shared “Man on the Street” video interviews we had done with younger travelers and got a glimpse into glamping/camping adventures.

While manufacturers overproduced in order to meet demand, they did so at the peak of sales-and now inventory must find balance again. This is expected to happen in 2020-with again more intense focus on the glamping sector and younger buyers.

Stay put if you want-put the trends are changing and you and your park must be willing to change with them.

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What Not To Do Wednesday-Trust and Not Verify

Ronald Regan had a wonderful saying, “Trust but Verify.” This is the motto he lived by when dealing with Cold War Russia. It was a motto that led to the eventual fall of communism across the globe.

This is a motto we live by when dealing with the finances at our AOS managed parks. We trust our park’s staff, but we verify they are doing things correctly.

This week we are helping a client who is buying two parks. At both parks, the owners suffered at the hands of staff embezzlement.

Since we watch our clients numbers daily, we catch “odd” behaviors-sadly, many parks do not catch nefarious activity until is it way too late.

When we came upon our second park in one week with this issue, I said to my team, “How does this happen?”

One of my staff quickly replied, “They do not run their parks like a business, but rather as some sort of social club.” She could not have been more correct.

The owners of both parks mentioned above looked upon their staff as, “Family,” and never reviewed the books each day. This is where AOS takes a different approach. We immediately catch things like ongoing refunds, management credits, and excessive number of cancellations. When we notice oddities, we dig deep to discover the details and verify the legitimacy of the action. This is paramount to running a well oiled machine.

Most owners do not have time to look over the staff’s shoulders. They are too busy running their business to run their business. 3rd party mangement companies have the time to dig deep, and pay for themselves by catching such errors or ommissions.

Whether you run your park, or hire 3rd party management-make sure you look at your number daily!

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What Not To Do Wednesday-Argue With Market Price

I am originally from the Eastern Shore-“The Delmarva Peninsula,” as we call it. This stands for the Delaware/Maryland/Virginia Peninsula. Delmarva is known for agriculture, amazing beaches and Maryland Blue Crabs! If you are from Delmarva-and Maryland specifically-you most likely LOVE crab and know how to pick them.

When you buy crabs at any time of year in Maryland, you are going to pay, “Market Rate.” There is no set price-the rate is based off daily supply and demand. Marylanders know it, don’t argue with it, and if they want crabs, they pay it. If the crab industry gets this concept-why are we still so backward in the Outdoor Hospitality Space?

Too often, we hear owners say to us, “Our rate is too high; we are not worth this.” I remind them, the market is telling them otherwise. Their revenue is up and the market is paying the rate.  The market is telling them they will pay that rate and they are worth it.

They seem to be very scared to allow rate to be pushed. I say to them what I say to my staff…“Numbers don’t lie.” Numbers will tell us when the market has not been pushed enough or when it has been pushed to the limit. Yet, daily we have park staff or owners want to buck the market and go rouge.

I find this to be a battle unique to this industry. Never did we have Marriott micromanage our revenue managers. They cared about the rate and occupancy balance, and if these were working, they never drilled down into what we were charging or the occupancy percentages. They just wanted revenue managed.

Here at AOS we find it takes very savvy owners and investors to understand Revenue Management. Some are just never going to get it-and that is the struggle we see this industry when managing revenue. The familial relationships they form with their guests, and the contra-market thinking lead them to lose revenue every day because they are not willing to agree with the market and charge market rate. 

Take a lesson from the mighty crab industry, allow us to set your prices at market rate and make you money while doing it. By doing so, you will see overall revenue increase even if occupancy falls. This is the magic that happens when the market is heard.

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What Not To Do Wednesday-Focusing on Occupancy ALONE

As most of you know, almost our entire AOS management team came out of the hotel world. We were primarily associated with the Marriott Brand of hotels. It is here that our team and our revenue managers perfected their skills.

When revenue management is done properly, the balance between rate and occupancy results in maximum revenue generation for the owners. This is the goal of revenue management-NOT increased occupancy alone.

Case in point-a resort in our AOS portfolio. When looking at their November numbers, their occupancy is down 5% over last month, but revenue is up over $8000. In addition, this park does not pass electric on to their long term guests, thus they are what I call, “Double Dipping.” They are up in revenue, down in electric expense, and all this at a lower occupancy.

Most often in this industry, owners do not understand this principle out of the gate. They panic when they see empty accommodations, but with a little education, they learn the rate occupancy balance is really what is ideal.

With AOS on your revenue, the overall picture is a balance that results in year over year growth in REVENUE-even if occupancy is down.

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The OTA Debate-Will The Outdoor Industry Ever Understand?

One of the most hotly debated topics at this year’s ARVC convention was over the use of OTA’s (Online Travel Agencies). Passion ran high on both sides of the debate-and often the facts were lost in the mix.

We at AOS are firm believers in using OTA’s as a revenue generation tool. Let’s put it this way-if power brands like Marriott and Holiday Inn believe they must be on the OTA’s to compete-then YOU must be on them to compete.

Take Air BnB for example. Statista 2019 shows that by year 2022 Air BB will have 46.5 Million users. Currently, they have 41.1 million. AOS parks on Air BB rent their roofed accommodations 85% of the time on Air BB or VRBO. This is 85% worth of business that they would likely not have if not for the OTA’s. This number is astonishing and not to be ignored.

Some of the typical arguments against OTA’s go something like this..

If we go on OTA’s we are competing with hotels and we cannot win.

False-If we can get a guest out of a hotel into a cabin with outdoor space, a yard, and a great experience, we rarely if ever lose them back to a hotel.

Campers do not use OTA’s.

False-As stated above, a vast majority of our cabins accommodations are booked on OTA’s. This is fact.

OTA’s create “Price Wars” between parks and should be avoided.

False-OTA’s allow you the ability to highlight your amenities and attractions to a market looking for experiences rather than stays. Connecting your park to OTA’s helps you reach that audience and show why you are better at offering an experience rather than just a bed.

Whether we like it or not, OTA’s are here to stay. If you do not get on them, your competitor will, and you will lose guests due to your reluctance to embrace change and move to where the industry has long been headed. We can stick our head in the sand, or we can move to the future and make money all along the way.

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Say Hello To Some New Faces

As we are heading toward the end of 2019, we are excited to share some new additions to the team.

We have added three new team members in the past month, and we want you to get to know them.

Natassi comes to us out of the hotel and cruise ship industry. To say she is an experienced hospitality expert is an understatement. Any client who has met her knows she knows her stuff and is a great addition to the regional management team. Natassia will be found on all owners calls and she works closely with our OTA management and accounting team.

Chris is new to our Revenue Management department and he is also straight out of the hotel world. Chris worked as revenue manager for Marriott International most of his career and is a seasoned revenue manager. Our clients revenue is safe and sound under his leadership. He leads all yield template creation, comp set analysis, rate sets and yields. We are very blessed to have him on board.

Finally, Jim George is joining our team as the lead in our Marketing Department. Jim’s portfolio is impressive and he has worked for organizations across all spectrums of business. He has worked with NFL, NBA, and other professional sports teams-handling their overall marketing. Jim is a keyword and SEO expert as well a graphic designer and adobe suite specialist. He brings a new level of expertise to our team and we are excited to see what he can do for our client portfolio.

In addition to the team you already know-these new members add additional resources to make our client resorts stand head and shoulders above the competition. You will enjoy meeting them in the future. Go Team AOS!!

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Government Overload

Dreaming about your resort is such an enjoyable process. Looking forward to the guest engagement, planning activities, dreaming about the excursions, shopping for lodging units, and most of all, creating a revenue stream.

What is not so fun…the governmental processes involved in making your dream a reality.

One of the most important services we offer is the ability to walk our clients through the complex and lengthy governmental approval process. Early on in our growth, we hired some of the best minds when it comes to researching and parsing state, federal, and local code. Not only do we walk with them through this, but we also attend the hearings and meetings with them.

The questions to be answered are many. What are the setbacks I have to respect? What about sewer and water? Will the county allow my current road entrance or will they require an exit, a protected lane, or even a light at my expense?

Operationally, there can be even more questions Can I be open year round? What restrictions are in place that may prevent my guests from the full outdoor experience. Am I able to have food, beverage, campfires, or sports activities? What are the costs of the permits, easements, impact fees, or inspection fees associated with my project.

Getting to the bottom of these, and forming relationships with the people that matter, are what we do best. With former federal land use and BLM/Dept. of Interior staff, we know how to work with both sides to make everyone happy and get guests streaming into your resort.

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What Comes In Our Package??

When you sign up with AOS, you get the best of the best when it comes to Outdoor Hospitality experience. Of course, you already knew this!

What you may not know is that our Third Party Management clients have access to in house legal department. Our own J. Michael Hannon is available for our clients and all those sticky issues that come with running a resort.

Just this week, he has navigated clients through evictions, emotional service animal issues, HR related questions, staff background check concerns, and rent control provisions for long term guests. He also tackled FEMA and other regulatory quagmires.

When our regional managers need to get advice for their resorts, these managers can reach Mike and get sound legal counsel. He helps our team and our resorts avoid many of the legal pitfalls that come with having guests and employees. In today’s litigious society, this advice can save a park from needless defense costs.

Michael and his legal expertise is just one of the many services that keep AOS ahead of the competition.

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