090323 - Surcharges

March 23, 2009

When we first checked into our current RVP (Indian Waters), we were told that there had been a sudden change in campground fees effective immediately. Now we all know that the RV Industry has been hit hard with the rest of the economy in the past few months, and many motorhome and trailer manufacturers have either gone out of business or have sought bankruptcy protection. In addition, many RV dealers and resale lots have closed their doors due to lack of customers. It is only natural that the places RV people go to would also be financially hurt by the lack of new RV owners or the current ones staying at home.

However, the particular company that owns this park, Western Horizons Resorts, has taken a bold step to try to recoup losses in revenue from half empty campgrounds. The current daily rate has been $8. As of March 17, the president of Western Horizons Resorts has decided to raise the daily to $9 and added on a $5 energy surcharge. I can tell you that this does not sit well with the members I have spoken with, but there doesn't seem to be any recourse other than protest. Western Horizons Resorts is a family run company out of Colorado, and it appears the president has a lot of family members’ mouths to feed and is using his membership as his personal bailout fund.
This action seems similar to that of the State of California and the federal government in this time of crisis – raise taxes and squeeze every nickel out of the people who still have some money left, instead of cutting taxes and encouraging more spending at the consumer level. In my humble opinion, if Mr. Luken would lower park fees or offer incentives to new and old members to use his parks longer or more often, he would create more business and generate a good income stream to improve his bottom line.

I suspect this company may soon be added to the list of casualties along side the others in the RV industry that have fallen by the wayside because of the financial crisis and lack of consumer confidence. As for Peter and myself, we will adjust our travel budget accordingly and maintain our lifestyle. So far this will only be a TOPES (speed-bump) in the road.