Pricing your campground or RV park is one of the highest-leverage decisions you'll make—nail it, and you maximize revenue per site without losing occupancy; mess it up, and you leave thousands on the table or sit empty. Cost-plus pricing removes the guesswork by anchoring your rates to actual expenses plus a reasonable profit margin. This guide walks you through calculating your true costs and setting prices that keep your operation healthy and competitive.
What Is Cost-Plus Pricing?
Cost-plus pricing means adding a fixed markup percentage to your total costs per site or amenity. Instead of guessing what guests will pay or copying competitors blindly, you calculate every expense that goes into running your campground, divide by occupancy, and add your desired profit margin on top.
For a 50-site RV park, this might look like: total annual operating costs of $150,000 ÷ 50 sites ÷ 365 days × expected 70% occupancy = $14.63 base cost per site per night, then add 40–60% markup to reach your final nightly rate.
Identify All Your Operating Costs
Fixed Costs
These don't change month-to-month:
- Property lease, mortgage, or land payment
- Insurance (liability, property damage, workers' comp)
- Property taxes
- Permits and licenses
- Internet and phone infrastructure
- Office software and accounting subscriptions
- Management system or POS fees
Variable Costs
These scale with occupancy:
- Water, sewer, and electric utilities
- Trash and waste management
- Propane (if you supply it)
- Septic pumping or treatment chemicals
- Maintenance supplies (hoses, fittings, repairs)
- Cleaning and housekeeping labor
- Grounds keeping and mowing
- Security and lighting
Labor Costs
Whether full-time or part-time:
- Management and administrative salary
- Maintenance technician wages
- Seasonal workers (peak season adds 20–40% labor in summer)
- Payroll taxes and benefits (typically 15–25% of wages)
Calculate Your Cost Per Site Per Night
Step 1: Add total annual fixed and variable costs together.
Step 2: Multiply your site count by 365 days.
Step 3: Divide total costs by that number.
Example: A 30-site campground with $180,000 in annual costs = $180,000 ÷ (30 × 365) = $16.44 per site per night to break even.
Step 4: Adjust for realistic occupancy. If you expect 65% occupancy, your true daily cost per occupied site rises: $16.44 ÷ 0.65 = $25.29 per night.
Choose Your Markup Percentage
Most successful campground operators apply a 40–70% markup over base cost, depending on location and amenities.
- Rural or basic tent sites: 40–50% markup → $35–38/night pricing
- Suburban or mid-tier RV parks: 50–60% markup → $38–55/night pricing
- Premium locations with pools, WiFi, cable: 60–75% markup → $55–75+/night pricing
A 50% markup on that $25.29 base cost gives you $37.94 per night—a solid starting point for an average campground in a competitive market.
Segment Your Pricing by Site Type
Most campgrounds have different cost profiles for different sites. Price accordingly:
- Full-hookup RV sites cost more in utilities and maintenance than primitive tent spots
- Waterfront or premium-view lots should command higher rates
- Premium cabin rentals justify steeper margins due to higher-touch cleaning and turnover
For instance: tent site $28/night, standard RV full-hookup $45/night, premium waterfront $65/night.
Test and Refine
Don't lock in your rates forever. Monitor your metrics for the first 90 days:
- Track actual occupancy rates week by week
- Note which site types fill fastest
- Watch for seasonal demand spikes
- Survey guests on price acceptance (simple feedback form at checkout)
If you're hitting 85%+ occupancy, raise rates by 5–10%. If you're below 60%, cut rates or invest in marketing. Listing your campground on a comprehensive platform like Mercoly helps you get found by more potential guests, generate consistent leads, and sell ancillary products and services—all of which improve your occupancy and pricing power.
Frequently Asked Questions
Q: Should I charge differently for weekends vs. weekdays? Yes—many campgrounds charge 20–40% more Friday through Sunday, especially in tourist areas. This captures peak demand without pricing out weekday guests.
Q: What if my utility costs spike in winter or summer? Recalculate your variable cost quarterly and adjust nightly rates seasonally; summer rates might be 30% higher than winter rates, or vice versa depending on your climate and guest patterns.
Q: How often should I review my cost-plus pricing? At least quarterly, or whenever a major cost changes (fuel price jump, new staffing, property tax increase).
Start tracking your costs this month, calculate your break-even rate, and set your opening prices—your bottom line will thank you.