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KOA goes after the luxury market

    The other take is our property Terramor in Bar Harbor, Maine. We saw people looking for unique ways to experience the great outdoors, and not everyone is interested in traditional camping. We’ve always felt that the site of Terramor, a former KOA campground, had something very special. We don’t call it glamping. We call it an outdoor resort. We have a lodge with food service. We have tents with beds, comfortable bedding and personal fire rings. Each tent has its own bathroom, which is a big difference.

    Just like at a resort, we have many activities. We have these wonderful telescopes and we bring people in to stargaze. We have yoga and pilates. Our flagship is in Maine, so we bake lobsters once a week.

    Although we had not operated in the luxury space, we were very confident in our knowledge of outdoor hospitality and knew we could create something in Terramor that would resonate. We considered a brand extension of KOA, but in the end we thought a new brand made more sense. The brand is so well known and we are building something completely different.

    Eighty-five percent of the KOA business is in RVs. When people see KOA campgrounds, they think of an RV campground. There are no RVs on Terramor. We wanted to create clarity for our KOA campers. And we wanted to reach a whole new group of people saying, “KOA isn’t for me.”

    The decision to create a new brand was also tied to the price. Our average rate for a KOA tent pitch is $42 per night, an RV site is $55, and a deluxe cabin is $137. The average rate at Terramor is $400 per night. On a camping experience you bring your own equipment. It’s rustic. You are not in a bed. Terramor is similar to what you would see in a resort, and we offer resort amenities.

    We are ready to announce three to five new Terramor properties this summer. After that, I think we’ll get to the point where we’re announcing one to two new resorts a year.

    All Terramor properties will have several core features, including a central lodge with food service, a nature-inspired pool, group fire experience, pavilion, and a fenced-in dog area. Our accommodations all have their own fire ring at the tent and we provide free firewood. We are now also implementing a massage area in our current premises, which will likely be extended to future properties.