A Statement on COVID-19 from

First and foremost, we hope you and your families are healthy and safe during these crazy and stressful times. The Gorin+Cohen team is well and has been working from home since mid-March. We have been busy assisting clients with action plans and PPP strategies, writing a Standards of Operations manual and working on several market analysis and feasibility studies. The time grounded from travel has allowed us to catch up on all the organizational and administrative items you tend to push aside when busy with other projects. Most importantly we have done our best to keep our fingers on the pulse of the industry; attending industry related webinars, reading all the reports and trade info we can get our hands on, and attending the two day “Back to Camping Summit” this past Monday and Tuesday.

My career in the camping industry has not just survived but flourished through 6 recessions including the great recession in 2008 and the first half of 2009. The industry grew each year through gas shortages, high unemployment rates, soaring gas prices, high interest rates, the September 11th attacks, and the subprime mortgage crisis. In fact, throughout my 36 years of operating campgrounds and RV parks, beginning with my first season in 1972 through my last season in 2011, gross revenues and profits increased each year. This said, there were times through certain crisis and recessionary periods where policies and procedures needed to be adapted to achieve this success.

Prior to the pandemic, the outdoor hospitality industry was in the midst of many years of double-digit growth. As the economy reboots and states begin to reopen for business, what does the future hold for the camping and RV industry? No one has a crystal ball to accurately predict the future but let us share some of our thoughts with you regarding the anticipated impact of COVID-19 on the outdoor hospitality industry.

For the most part travel is at a standstill. Cruises are down to nothing; air travel is seeing 5% and hotels 10% of their respective typical volume. While consumers are eager to travel, they are frightened; fearing for their health, and for many finances are strained. Of all travel options available, camping in their own RV is the most attractive to travelers because it is the safest means to vacation in the COVID world we are living.

Camping naturally lends itself to social distancing. Renting a cabin at a campground or RV resort is more attractive than being in a hotel with rooms side by side, shared corridors, lobbies, elevators, and HVAC systems.

Campgrounds and RV parks are organically adaptable to COVID safety measures especially compared to other travel options. There is an opportunity for our industry to bring camping into the mainstream of travel, and market to consumers who may have never camped before or even considered camping. KOA’s 2020 North American Camping Special Report reveals that 46% of all leisure travelers (campers and noncampers) view camping as the safest way to vacation.

Campgrounds, RV parks, RVshare, an online RV rental marketplace, and RV Life, a network of consumer facing camping websites, report reservation traffic has begun to tick up since mid-April. KOA began seeing more reservations than cancellations on April 15th.

Campgrounds, that have been allowed to open, report sold-out weekends and increased summer
reservations. Changes in camping behavior because of COVID are evident. Most people will camp closer to home by choice or because they are confined to camp within their state. Many will choose seasonal or longer extended stays rather than traveling the country as they had planned. Guests making reservations are seeking flexible cancellation policies which at the very least allow credits after booking, contactless transactions, and transparency in the park’s COVID safety and cleaning policies.

Many RV manufacturers are back to work. 2020 RV shipments were ahead of 2019 through February. Many RV dealers are reporting steady sales. Camping World stock prices increased by 35%. RVshare and other RV rental companies reported record reservations before the March downturn. Since mid-April there has been an uptick in reservations and strong but different growth is projected. Campers are not booking as far in advance as in the past instead reserving closer to their trip date.

The future of camping is bright. There is strong short-term optimism for June, July, and August. The fall will be determined by what is happening with the virus come late summer. Post vaccine the outdoor hospitality is projecting a surge possibly greater than ever seen.

Parks will need to rethink how business looks for the remainder of 2020 and be prepared to change
course if needed. Marketing will need to focus more locally even for those in national destinations. Parks which are primarily transient may want to offer more seasonal or extended stays. Delaying repairs and maintenance or capital improvements may be advisable if a park is unsure of their occupancy and cash flow.

The RV and camping industry has had tremendous resiliency during the past economic downturns and proven to be significantly recession resistant. The recommendations for social distancing, staff and guest masks in indoor areas, daily staff health checks, and watching for guests with obvious health issues, and for “staycations” benefits RV parks and campgrounds.

A fundamental reason people purchase RVs is for independent travel. Unlike cruises, where thousands of people are traveling together, and airplane travel, where passengers may be exposed to unknown viruses, RVers travel in small family groups in their own vehicles staying in their own RVs. Further, the nature of RVing and camping as an outdoor activity keeps RVers and campers from large gatherings in closed
spaces.

In tough times, people still take their vacations, although the way they vacation often changes. The RV and camping industry offers safe and fun alternatives for people who still want to vacation. Consultants expect the RV and camping industry to ride out the current economic downturn and come out of this situation far better than other travel and recreation sectors.

Like campground and RV park operators we at Gorin+Cohen have had to adapt our way of doing
business. While nothing replaces visiting an RV park or potential property for development, or meeting with our clients face to face, through the use of modern technology, internet, and phone we have been able to continue with our feasibility studies, operational audits and other services offered. There is no better time to get on our schedule than now. Our schedules will be filling up quickly once travel
restrictions are lifted. Visit www.gorincohenconsulting.com for a full list of services offered.

Thank you for your continued trust and confidence in our services.

Stay healthy and safe.

Respectfully,

Jayne Cohen
Principal
Gorin+Cohen Consulting Group LLC