Kampgrounds of America Inc.

2019 KOA Patio Site Field Guide

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Page 2 of 27

INTRODUCTION – UPGRADING PATIO SITES PROVEN TACTIC INCREASES DEMAND, HAS STRONG ROI As the number and quality of KOA Patio Sites ™ has grown, so has the demand. In fact, it has turned into a love aff air. Campers love them for the added comfort they provide for dining, entertaining and relaxing. They seek them out and request them fi rst. They pay more for them. They give higher customer-service marks for their stay. Our owners and managers love them. Patio Sites deliver higher occupancy. They support higher rates. Upgrades pay for themselves in just a few years. The growth in Patio Sites strengthens the entire KOA system as bookings and revenue increases, boosting our competitive advantage. Owners speak of the "wow factor" that Patio Sites on RV, Deluxe Cabin, Camping Cabin and Tent sites bring to their campgrounds. Even if guests don't choose a Patio Site, they are impressed by their appearance as they explore the campground. The visual appeal of each KOA boosts our overall brand image. The numbers carry their own wow factor. Consider: • Over the last decade, rates were 33% higher for sites upgraded to Patio Sites. • A recent study of 15 KOAs showed a 56% average return- on-investment in Year 1 a er a $3,000 upgrade of an existing site to a Patio Site. In Year 2, ROI was 128% for upgraded Patio Sites. A recent study of four KOAs installing new Patio Sites show Year 1 ROI at 57.6% on an average investment of $9,000 per site. Year 2 ROI was 102.6%. Average payoff came in at two years. This fi eld guide outlines the minimum guidelines for KOA Patio Sites ™ that meet the criteria for KOA Brand Positioning and promotion across our system in North America. It is a tool to help owners and managers increase their business by meeting the growing demand for Patio Sites. 1

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