BUSINESS JOURNAL

Millennials join crowds at campgrounds

Malachi Petersen
Sioux Falls Business Journal

If millennials go camping and don't post a photo of the trip on social media, were they really there?

Sharing the experience is just part of the draw for younger campers who are embracing the outdoors and starting to put their signature on the industry.

Some are looking to disconnect from technology and get outdoors.

Others want to reconnect with their childhood and positive memories of camping.

But they also are seeking more than a place to pitch a tent and fish. A new generation of campers wants access to the Internet and more comfortable accommodations, forcing changes in the industry.

"Our lives are getting extremely busy and camping provides a nice way to escape that and still be connected," said Toby O'Rourke, senior vice president of marketing for Kampgrounds of America Inc.

"People still want Wi-Fi, they want access, but getting outside and getting offline, people are recognizing the value in that."

In South Dakota, it is an increasingly popular pastime.

Statewide, camping generates $14 million in annual state revenue, including camping and park entrance fees.

Camping numbers already are up 8 percent year-over-year.

"We very likely will set another record this year," said Doug Hofer, the director of the South Dakota Division of Parks and Recreation.

KOA, which has a campground in Sioux Falls, has experienced year-over-year growth for the past several years and is on pace to grow again, O'Rourke said.

A KOA industry survey found 53 percent of campers planned to spend more nights camping this year than the previous year, and 48 percent planned to take more trips.

Indicators such as gas prices, consumer confidence and weather are trending up, O'Rourke said.

"And that tends to mean people are out camping."

Growing demographic

The changing face of camping looks like Amy Pasek or Jacob DeYonge.

Pasek, a 23 year-old employee at First Bank and Trust, bought a new camper this year with her 25-year-old fiance, DeYonge. The couple go camping two or three times a month with their 16-month-old son, Ben.

Before buying their Rockwood Freedom pop-up camper for about $3,000, DeYonge and Pasek owned a 1988 camper they bought for $400. Before that, they owned a tent.

"We went a couple of times last summer when we were pregnant. In the tent, we were kind of over it – I was kind of over it," Pasek said.

They chose the new camper for its more comfortable sleeping areas, and Pasek said eventually they probably will upgrade to a full-size pull-behind camper.

Pasek said she likes to go camping because it helps her to "unplug" from the world and enjoy time with her family.

Jacob DeYonge and Amy Pasek play bean bags at Newton Hills State Park near Canton.

In the KOA survey, 55 percent of campers said reconnecting with nature was their top reason to camp, and 54 percent said they went to reduce stress.

But they don't entirely disconnect. Half said they planned to go online at least once daily while camping, and 41 percent said having free Wi-Fi influences their decision to stay at a campground.

"That's a staggering number," O'Rourke said, adding that many campgrounds have made costly Wi-Fi investments to meet the demand. "They're hitting social media during and after their stay. We want them to share that. Smartphone use and being able to get access to what they need when they want it is very important."

Millennials have a thirst for travel, said Jeff Fromm, president of FutureCast, a marketing consulting firm based in Kansas City geared toward research on millennials' effect on the marketplace.

"Millennials want to see every state in their lifetime, and they have a strong affinity for travel," Fromm said, adding they also will reward brands that make the experience easier.

Christopher McGaw, a 23-year-old South Dakota State University graduate and a friend of Pasek's, said he originally started camping when he was a Boy Scout and has continued the hobby into adulthood.

"It's just been something that I enjoy," he said.

McGaw said he bought most of his gear, including a tent, online from Sierra Trading Post. He said he steers clear of brand-name equipment and retail stores because they're expensive.

"As a college student, I don't have hundreds of dollars to spend on stuff," he said.

Crowded campgrounds

In South Dakota the amount of camping done every year has been rising steadily over the past decade, although those in the industry aren't exactly sure why.

"We've added campsites over the last few years but not at the rate that camping use has grown," said Bob Schneider, the assistant director of the South Dakota Division of Parks and Recreation.

But numbers collected by the state on campground use show the industry is growing in popularity.

The state calculates camping units used. A unit is a spot in a campground that can be rented per night. In 2014, there were 290,279 camping units used statewide. That's an increase of 11,250 units from 2013.

"I see the same thing with commercial camping around the state," Schneider said.

The state doesn't have any data on the ages of the people camping, but he said the age group varies from millennials to retirees. His theory on the increase is that people want to reconnect with nature.

"In this part of the country, people enjoy their outdoors and South Dakota has some great outdoors," he said.

Local campgrounds in the Sioux Falls area are benefiting from the popularity of the hobby. Newton Hills State Park near Canton is at 100 percent capacity on the weekends for the remainder of the summer, and Palisades State Park near Garretson has had a 120-unit increase from last year.

Travis Theilen, the district park supervisor of Palisades, said there have been "dramatic increases" in the number of campers using the campgrounds over the past few years even though no new facilities have been added.

"I think there's more and more people who are participating in this recreational activity every year," he said.

The age group at the camp varies, but Theilen said it seems to be a popular option for families. As for equipment being used by campers, he said the range is as diverse as the people who camp, with retirees bringing equipment geared toward comfort and families bringing yard games for their children.

"Things are so specific anymore it seems like every brand has their niche market," he said.

Eric Vander Stouwe, the district supervisor of Newton Hills, said camping numbers are up 10 percent from last year.

"Without a doubt, our main group is young families," he said.

Stouwe said there has been a shift in the past decade from hard-sided campers to tents.

"There's some research that suggests there's more demand for tent camping," he said. "There's a sense that the younger community – it seems like there's people that want to do more backpacking and remote camping."

Tourists enjoy dinner at Sioux Falls KOA, a campsite and RV park along Interstate 90 near Cliff Avenue.

At KOA, campers are looking for more food and entertainment. The business has added more options within the campground as visitors increasingly want to spend more time there.

"Fishing and hiking rank really high as do things like photography and just spending time outdoors, but things popular at private campgrounds like KOA are activity weekends, with things like tie-dying and slip-and-slides and jumping pillows," O'Rourke said.

Gearing up

DeAnn Echols, co-owner of the Great Outdoor Store,said she has seen an increase in the number of young people and young families coming into the downtown store to buy camping equipment, specifically tents and backpacks.

"The millennial generation are looking for a way to escape and that fits the bill for them," she said.

Echols said the age group is very focused on technology but at the same time is also focused on the ecosystem.

"We look at that category and how to attract that category, but yes they're catching on, and we're seeing more of that age group coming in," she said.

In a 2013 report by the Coleman Co. Inc. and The Outdoor Foundation, 81 percent of campers used tents that year. That number further translated to 93 percent of 18- to 34-year-olds using tents as well as 84 percent of 35- to 44-year-olds.

Sixteen percent of campers used recreational vehicles, with the leading age group being people older than 55.

Even though tents are more popular than other types of camping shelters, people who use them tend to have the shortest camping outings, with 70 percent having one- to two-night outings. RV owners had the longest camping outings, with 28 percent staying five or more nights on a trip.

Lyle Schaap, an owner of Schaap's RV Traveland Inc., said business has been growing at a steady rate since 2009. In that time, he has seen the age group buying RVs broaden to include both millennials and retirees.

He said the trend for the industry is leaning toward smaller RVs for retirees that are easier to tow to larger vehicles for families in their mid-20s to mid-30s. Schaap said he can't remember when he first saw younger people start to buy RVs but said it is fairly recent.

"It's just something that I notice that I don't remember seeing," he said.

Some of the people buying larger campers are using them as a permanent residence, travelling across the country while still continuing to work from "home" – something Schaap said is a result of the Internet age.

"They're buying some pretty large RVs and considering them to be their home," Schaap said.

But in looking at the big picture of how his business has increased, Schaap simply attributes it to the values of South Dakotans.

"It sits really well with our culture – the culture of families," he said.