PRIVATE (COMMERCIAL) RECREATION SERVICES

1
PRIVATE (COMMERCIAL)RECREATION SERVICES

• KINDS
• 1. Service Delivery Firms
• 2. Recreational real estate
• 3. Specialty shops
• 4. Tourism
• Main purpose is to return a PROFIT

2
Examples

• Private campgrounds KOA-Safari-Yogi Bear
• Guest ranches, Stables and Outfitter Guides
• Resorts
• Golf courses
• Trails
• Hunting preserves
• Marinas and Water sports
• Amusement Parks
• Time Share Properties
• Retail equipment
• Travel agencies
• Country club
• Concessions

3
Why People Get Into Private Rec.

• 1. Make money quickly or long range
• 2. Investor owns a piece of land or property at
  a strategic location
• 3. Others are doing well
• 4. Demand

4
Keys to Success

• 1. Product adaptability
• 2. Location
• 3. Quality guarantee
• 4. Marketable price

5
Problems

• 1. Seasonality
• 2. Initial capital investment
• 3. Labor costs (liability)
• 4. Trends are always changing
• 5. Gov. competition for same services
• 6. Weather or factors out of your control
• 7. Over saturation of services

6
Profit (vs) Risk

• Risk
• HI LOW
• Profit HI 1 2
• LOW 3 4