Why Outdoor Hospitality is the Next Big Franchise Frontier, and How to Get Started

Outdoor hospitality is a rapidly growing industry. The trend began after the COVID-19 pandemic, as people sought more nature-based travel. It is now a major part of the tourism economy across the U.S. and Canada, with road trips and campgrounds taking precedence over hotel-based vacations for many people.

The increasing demand for outdoor hospitality experiences has piqued the interest of many aspiring business owners, who are actively exploring how to enter the campground industry and find the best way to get started in the exciting venture.

The Growth of Outdoor Hospitality

Among the most significant contributors to the growth of the outdoor hospitality industry is the rising popularity of RV ownership and road trips. First-timers now make up 36% of all RV owners, which is a notable increase.

The pandemic also significantly impacted how people vacation. Katherine Reynolds, CEO of the Alger County Chamber in Michigan, noted an increase in visitors to Pictured Rocks National Lakeshore. She said many people inexperienced with the outdoors were “wanting to just get out.”

Glamping, short for glamorous camping, has also increased in popularity. Furnished cabins with comfortable beds, electricity and private bathrooms are just some of the cozy benefits it offers compared to traditional camping. The market is expected to reach $7.45 billion by 2031, emphasizing this jump and illustrating that this is not a short-term popularity spike.

Traditional RV sites remain a core component of outdoor hospitality, but the industry has broadened and expanded to meet shifting consumer preferences, with families increasingly seeking accommodations that blend outdoor access with modern conveniences.

The Economics of Starting an Outdoor Hospitality Business

Craig Kirby, RV Industry Association president and CEO, says that consumers continue to prioritize “spending time with family and friends, and creating lifetime memories.” This has undoubtedly contributed to the rise of the outdoor hospitality industry and can make for an enjoyable working life.

This does not mean that starting a business in this field is easy, however. This requires careful research and planning, a firm understanding of demographics, a great location with natural features, proximity to attractions, accessibility and a comprehensive business plan. Still, the economics are broad and exciting.

Campgrounds can generate income from multiple sources on a single property. RV hookups are a core revenue stream, especially in regions with seasonal and long-distance travelers. Tent sites, cabins and glamping experiences are popular, though careful consideration is needed to determine how exactly to present and market a campground and what to offer.

Additional revenue streams can include:

• Equipment rentals
• Organized activities and events
• Utility surcharges
• Camp stores selling food and camping supplies
• Seasonal experiences

The combination of accommodation, retail and guest experiences can make campgrounds adaptable and highly profitable businesses when done right. They can also be rewarding to run, as they promote healthy living and happy times for families. Consider that, according to Kampgrounds of America, Inc., 68% of all campers agree camping is a great way to escape the stress of everyday life, a sentiment that drives repeat visits and customer loyalty.

How Do You Start a Campground Business?

Everyone would start a campground business if it were easy. However, there are several important factors you need to consider and plan for before diving into the industry. Location, budget and other factors can create different priorities, but here is a general step-by-step guide to starting a campground business.

Choose the Right Location

Location is one of the most important factors in a campground’s success. Profitable sites are often situated near natural attractions such as national parks, mountains or other popular outdoor areas. Accessibility is an important consideration, especially if an abundance of RV travelers is expected.

Secure Suitable Land

Land that is properly zoned for hospitality use must be secured. A comprehensive understanding of the target area’s zoning laws and other regulations determines which facilities can be built and how the land can be adapted.

Define Your Concept and Create a Marketing Strategy

A marketing plan is needed to ensure your campground gets the attention it deserves. You must determine what you’ll be offering and who you’ll be appealing to before you get too deep into the plans, such as whether it will be geared toward glampers or a more traditional camping experience.

Design the Layout and Build Amenities That Campers Expect

You need to ensure that the layout and amenities on offer fit what guests will expect based on your marketing. Even small, seemingly insignificant details need to be carefully thought out and in line with customer expectations.

Decide Whether to Be Independent or Join a Franchise

Some people prefer to develop a campground independently, while others explore franchise opportunities. There is no right or wrong answer. It depends on the individual needs of the aspiring business owner. Both options should be considered, though, to ensure the campground reaches its potential.

Why Many Owners Choose Franchise Support

Franchise support can be hugely beneficial to help a business get started and reach its potential. Site design, infrastructure planning and marketing are just some of the areas that can be helped by joining an established franchise system. Franchise systems also provide brand recognition, operational best practices and access to proprietary booking platforms that independent operators must build from scratch.

Becoming a franchisee presents a higher success rate for a campground business, often resulting in less risk and more resources. Several established franchise options exist in the outdoor hospitality space, including KOA, Jellystone Park Camp-Resorts and Thousand Trails. Each offers different levels of support, investment requirements and brand positioning.

For example, KOA — which has over 60 years of experience with more than 500 locations across the U.S. and Canada — provides franchisees with brand recognition among an established customer base, strategic guidance for revenue growth and operational resources like proprietary analytics and performance reports. According to KOA, campgrounds that convert to the KOA franchise system experience an average 19% increase in registration revenue in the first year, demonstrating the tangible impact of brand recognition and operational support.

Franchise systems like these allow owners to be in business for themselves while leveraging an established brand’s foundation, booking network and operational support. The trade-off typically includes franchise fees, ongoing royalties and adherence to brand standards, but many owners find the infrastructure and reduced risk worthwhile.

The Next Big Franchise Frontier

Campgrounds are increasing in prominence in the outdoor hospitality landscape. Travelers and vacationers are seeking experiences that combine comfort with access to great outdoor locations. Campgrounds are growing and evolving, with RV sites, tent camping, cabins and glamping experiences all now commonplace.

Launching a campground requires careful planning, investment and a firm understanding of every aspect of the industry — from zoning regulations and infrastructure costs to seasonal demand patterns and guest expectations — which is why becoming a franchisee is an option many aspiring owners explore. When deciding how to start their campground business, many owners find that working with established brands like KOA or Thousand Trails provides the proven frameworks and operational support that increase their chances of success.