The Economics of Everyday Things — Episode 112: Campgrounds

Host: Zachary Crockett (Freakonomics Network)
Date: October 27, 2025

Episode Overview

This episode dives into the surprisingly complex economics behind American campgrounds. Host Zachary Crockett explores how campgrounds are owned and operated, what it takes to start or buy one, how they're run as businesses, and the financial realities behind this slice of Americana — all through the journey of Mark Lemoine, a former political lobbyist turned campground entrepreneur and KOA executive.

Key Discussion Points & Insights

1. From Politics to Campgrounds: Mark Lemoine’s Pivot

• [01:07 – 02:31]
  • Mark Lemoine describes leaving a high-stress, decades-long political career for a radical life change, inspired by a simple dream: running a campground.
  • “With no hesitation, I told him, 'you're going to think I'm crazy, but I’ve always wanted to own and operate a campground.’” – Mark Lemoine [01:43]
  • Sold his home, cars, and belongings to fund buying a campground within six months.

2. Types of Campgrounds in America

• [02:31 – 03:31]
  • Nearly 27,000 US campgrounds with over 2 million campsites; variety ranges from minimalist tent sites to “glamping” and deluxe cabin setups.
  • Publicly owned (about half, run by NPS, BLM, state, city) vs. privately owned (often mom-and-pop or franchise).
• Quote: “Campgrounds can be built on either large tracts of land, let’s say 40 acres... or I would probably say, you know, as small as about 10 acres.” — Mark Lemoine [05:25]

3. Public vs. Private Campgrounds: Economics and Purpose

• [03:31 – 04:59]
  • Public campgrounds have low fees but require tax subsidies; they usually don’t fully cover operational costs.
  • “The park service estimates that each tax dollar invested in National Parks returns $10 in local economic activity.” — Zachary Crockett [04:06]
  • Private campgrounds operate for profit, heavily entrepreneurial, and often treat guests as family.
  • “Our industry is very fragmented… mostly owned and operated by mom and pops.” — Mark Lemoine [04:59]

4. Starting or Buying a Campground: Costs and Logistics

• [05:17 – 07:29]
  • Building new: At least 100 sites recommended; infrastructure costs alone range from $1.5M–$2.5M+, not including land.
    • "It’s estimated that it would be about $15,000 to $25,000 per site..." — Mark Lemoine [05:51]
  • Red tape: Licensing, permits, and compliance with various regulations in every state.
  • Buying existing: Often $4–6 million for established, well-located parks.
  • Franchise route (e.g., KOA) provides brand visibility but adds royalty and marketing fees.

5. The KOA Franchise Model

• [07:29 – 09:06]
  • “KOA is the most recognized brand in the outdoor hospitality industry.” — Mark Lemoine [08:07]
  • As franchisees, owners pay 8% of registration revenue as royalties and an additional 2% for marketing.
  • In 2023, KOA parks generated about $500M collectively, averaging nearly $1M per location (excluding ancillary revenue).

6. Campground Operations and Financial Realities

• [11:48 – 13:15]

  • Description of Lemoine’s Michigan campground: 130 sites (101 RV, 9 tent, 20 cabins), earning about $1.5M/year.
  • Higher-end sites and amenities rent faster than basic (“value” sites).
  • “It’s our more expensive sites with the larger amenities that go first.” — Mark Lemoine [12:42]

• [13:15 – 14:29]

  • 85% of his revenue from site rentals; the rest from the general store and other features.
  • Average rates: Tent sites ~$40/night, RV ~$50 and up (some RV sites $200+ for premium).
  • Dynamic (“airline-style”) pricing is growing more common: book early for better prices.

7. Maximizing Occupancy and Revenue Streams

• [14:29 – 15:34]

  • Goal: 60–70% nightly occupancy overall, near 100% in peak summer.
  • Diversified income: Onsite stores (food, supplies, firewood), especially valuable because KOA royalties don’t apply.
  • “The store really is, from an economic standpoint, the engine…” — Mark Lemoine [15:34]

• [16:01 – 16:31]

  • Typical family of four spends about $150/night including camping, snacks, and souvenirs.
  • Seasonal nature means most revenue comes between Memorial Day and Labor Day (“like farming”).

8. Expenses, Staffing, and Hidden Costs

• [16:50 – 17:47]
  • Year-round bills but seasonal cash flow.
  • Staff: Mix of “work campers” (retirees trading labor for stay) and local youth.
  • Massive electric bills: “My peak electric bill, I paid as much as $15,000 once in a month.” — Mark Lemoine [17:41]
  • Unpredictable repairs: Trees snapping lines, water hookups breaking.

9. Profit Margins and Business Sustainability

• [18:12 – 18:46]
  • Lemoine targets a 30% profit margin (~$450K/year), reinvesting profits or paying himself as owner.
  • “You’ve got that 30% to be able to reinvest back into the campground or, you know, a novel idea with most people, business owners, especially mom and pops, is ultimately you’d like to pay yourself.” — Mark Lemoine [18:34]

10. Reflections on the Campground Life

• [18:46 – 19:41]
  • Formerly in government/policy, Lemoine finds immense fulfillment from creating visible, direct positive impact for guests and families.
  • “I get no greater joy than walking around my campground on an evening and seeing families sitting around the fire…” — Mark Lemoine [18:51]
  • Running a campground likened to running a small town: “I’m the president, the Congress, the Supreme Court, the governor, I’m the chief of police and the dog catcher all wrapped in one.” — Mark Lemoine [19:25]

Notable Quotes & Memorable Moments

• Why campgrounds?

  “You’re going to think I’m crazy, but I’ve always wanted to own and operate a campground.”
  — Mark Lemoine [01:43]

• Campground infrastructure cost:

  “If you were building a 100 site campground, you’re looking... at a top range of about $2.5 million just to build the infrastructure. That doesn’t include the land.”
  — Mark Lemoine [05:51]

• Seasonal stress:

  “As a seasonal business, it’s like farming. You need to make money when the sun is shining. But those bills come in year round.”
  — Mark Lemoine [16:31]

• Biggest expense surprise:

  “My peak electric bill, I paid as much as $15,000 once in a month.”
  — Mark Lemoine [17:41]

• On being a campground operator:

  “I’m the president, I’m the Congress, I’m the Supreme Court, the governor, I’m the chief of police and the dog catcher all wrapped in one.”
  — Mark Lemoine [19:25]

• DIY warning:

  “Our industry has largely been known for a lot of DIY. I don’t recommend that necessarily.”
  — Mark Lemoine [20:15]

Timestamps for Important Segments

• Mark’s origin story: [01:07 – 02:31]
• Public vs. Private Campgrounds: [03:31 – 04:59]
• Campground construction costs & process: [05:17 – 06:46]
• KOA franchise economics: [07:29 – 09:06]
• Campground daily operations: [11:48 – 13:15]
• Revenue breakdown and pricing: [13:40 – 14:29]
• Seasonality and staffing: [16:31 – 17:21]
• Profit margins & owner reflections: [18:12 – 19:41]

Podcast Tone and Language

• Conversational, candid, and curious tone
• Direct testimonies from an entrepreneur navigating industry realities
• Accessible explanations demystifying financial and regulatory complexities
• Light, occasionally humorous banter (e.g., about building picnic tables, [20:21])

Takeaways

Running a campground might look like an idyllic escape, but it’s a serious business with major capital investment, complex operations, and a blend of hospitality, logistics, and a touch of local governance. For people like Mark Lemoine, the deep satisfaction comes not just from owning land, but from building a place for families to gather, relax, and make memories — all while balancing the books and dodging snapped water lines.

For more episodes and topics, or to suggest an idea, listeners are invited to email everydaythings@freakonomics.com