Cashing In on Campers

In theory, people go camping to get away from it all. In practice, many campers like to take with them--or at least find at the campsite--most of the conveniences of home. Businessmen have been slow to catch on to the potential for profit in that well-known fact, but they have lately begun to make up for lost time. In many parts of the U.S., vacationers can now fly to their destination, rent a mobile camper at" the airport, drive to a campground conveniently near the highway, sip cocktails in a lounge right on the grounds, and if they wish, have dinner served at their picnic table.

A good many campers will settle for somewhat less. They want a flat place to park or pitch a tent (since portable gas refrigerators usually work only on the level), plus clean toilets and showers, and perhaps a swimming pool--at a price considerably below motel rates. To fill those needs, private campgrounds are opening all over the U.S.; they now offer about 427,000 individual campsites. As might be expected in a business where standards vary widely, the customer wants the additional comfort of a reliable chain's name. That in turn has led to the fast-growing business of campground franchising.

Home on the Ranch. The leader in that new industry goes by the name of Kampgrounds of America, Inc. or KOA. It has opened 384 campgrounds so far, and earned $375,000 last year on revenues of $3,500,000. Since the company went public a year ago, its stock has split three for two; adjusted for the split, it has risen from $8.33 to $17.50 despite a bear market. The company has even sprouted a subsidiary: Ranch Kampgrounds of America, which has five operating, holiday camps,, one of them on a 75,000-acre cattle ranch at Chugwater, Wyo.

KOA got its start in 1961 in Billings, Mont., when local citizens realized that thousands of travelers would be stopping off on their way to the Seattle World's Fair. To land some of that business for the town's merchants,

David Drum, part owner of the local Y-V Fertilizer Corp., persuaded the town to run a sewer system and power line to some undeveloped property which he turned into a campground. It was such a success that Drum borrowed a copy of the Holiday Inns' franchise contract and set up a nationwide chain. Holiday Inns has followed KOA into the business, as have Gulf Oil and a pack of smaller companies.

Help from Boy Scouts. KOA franchise operators are mostly farmers and ranchers with unused land. They pay the company a fee of $8,900, plus $300 a year and 8% ot whatever they charge campers--a price that ranges from $2 to $6 per night. The fee can rise to $100 a week if the customer wants to rent a trailer, which some franchise holders offer as well. What KOA gives the franchise operator is national advertising, a toll-free telephone-reservations service, listing in its Kampground Directory and rigidly enforced standards. Minimum facilities include electrical hookups, sewage disposal, a grocery store and hot showers. KOA also gives generous amounts of advice. Sample from the operations manual: "If you don't have a flagpole, you should get one. Fly the flag proudly every day. One angle is to have visiting Scout troops, young campers, or other organizations put on a retreat ceremony and flag lowering every evening."

Camping that takes the wild out of the wilderness does not attract everyone. Among those who still prefer the wilderness untouched is KOA President Darrell Booth, a former manager of the Billings Chamber of Commerce. He took over the job in 1967 after Drum, realizing that he was a better idea man than administrator, stepped down to a vice presidency. "Roughing it is my bag," says Booth. "But as a businessman, I know that if that was all I had to offer, I'd go broke. Most people nowadays want good facilities. I'll provide them, and meanwhile, I'll do my own camping in my own way." For his vacation away from Billings, Booth prefers to take only as much equipment as he can backpack, and rarely stops at a convenience-loaded campground.

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