2017 OA Resolutions


Kampground of America, Inc.
550 N 31st Street, TW3 Fourth Floor
Billings, MT 59101

KOA Kampground Owners Association
3416 Primm Lane
Birmingham, AL 35216


Dear KOA Owners Association,

These following pages of this letter highlight Kampgrounds of America, Inc. responses to the Owners Association resolutions presented at the 2017 KOA Annual Convention. KOA took action and completed some of the resolutions and declined action on others. In all instances, an appropriate level of supporting information was provided to the OA in an effort to create transparency around our responses.

We thank the Owners Association for presenting these resolutions and we look forward to continuing our stable working relationship.

Sincerely,

Darin Uselman
Vice President, Franchise Services

Resolutions

  1. FROM AREA 1 (Resolution Accepted)– COMPLETED. Declined Action.  The request to eliminate royalties on the revenues generated by the discount codes for Big Weekend, Fathers' Day Kids Camp Free and the Value Card Appreciation Weekend.  There is a concern that not all KOAs participate in these promotional weekends because of the loss of revenue.  If royalties are not collected, then more KOAs would participate.

    KOA Response: In 2017, 83% of KOAs participated in Care Camps Big Weekend, 70% of KOAs participated in Father’s Day, and 83% participated in VKR Appreciation. Participation levels on these weekends suggest that critical mass has been reached and the proposed royalty incentive may only marginally increase participation. It should also be noted that some campgrounds have existing operational conflicts that do not allow them to participate in these national promotions. Therefore, we respectfully decline action on this proposed resolution.

    2. FROM AREA 2 (Resolution Accepted) - COMPLETE.  It is requested the Campground Cancellation policy be listed earlier in the confirmation process with the National Guidelines appearingimmediately after.  This will help minimize confusion.

    KOA Response: We agree with the resolution brought forth. We have made an immediate change to how the cancellation policy is printed. An example is below.


Additionally, here is how the reservation would look on KOA.com.


During Franchise Advisory Committee Meetings in July 2018, the committee requested the cancellation rules be relocated to the Reservation Summary or Campground Information sections of the confirmation. We are currently reviewing this request


3.       FROM AREA 5 (Resolution Accepted) - COMPLETED.  It is requested the billboard program be increased to $1500 with latitude for special conditions such as installation costs to be dispersed over monthly billing.

KOA Response: Over the past couple years, this program has grown nicely with about 30 campgrounds every year updating their external signage. We agree that it is in everyone’s best interest to invest money in areas that drive more camper nights and increase brand awareness. To that end, the billboard program was extended beyond billboards and now includes all external signage (including directional and DOT signs). This extension has been in place for the last two years. We believe external signage, even as operational as a directional, has a marketing effect on brand awareness and exposure to new KOA campers. Therefore, we agree with the OA resolution and have increased the Coop from $1,000 to $1,500, with an increased total budget for the program by 50%. This decision is important on two fronts. First, these funds will expand impactful marketing tactics in areas that help our competitive advantage. Second, we believe this furthers our commitment to all franchisees to provide meaningful marketing support that benefits all. Our hope is this additional money will continue growing this program.

Installation costs: These costs are included in the Coop program. In the case that installation costs are rolled up into monthly payments, KOA only asks that the reimbursement paperwork be submitted once per year. It would be difficult to manage the accounting side for monthly reimbursements for campgrounds.


4. FROM AREA 5 (Resolution Accepted) - COMPLETED.  It is requested that there be a refund for monthly charges for PIN pads that are not operational (activated).


KOA Response: During the PIN pad rollout, a device backlog delayed the shipment to select franchise locations. Unfortunately, the delay resulted in some franchise locations choosing NOT to install the PIN pads because their operations were amidst peak season traffic. Subsequently, some locations were paying for devices that were not deployed into their operations.


Our partner, Axia Med, has agreed to waive some of the monthly fees for select locations that were affected by the roll-out backlog.Axia has isolated the delivery back-log to 62 campgrounds. These campgrounds will receive a two-month ACH credit on their Axia statement beginning in August. The credit will include two-months of terminal fees ($10 Monthly Charge per terminal and $5 Monthly Charge for Gateway Fee).


To add additional clarity to the billing timing and avoid similar situations in the future, a clarifying statement was added to the terms and conditions of the existing contract that denotes billing begins upon receipt of the hardware.


5. FROM AREA 6 (Resolution Accepted) - COMPLETED.  Requested that Kampsight Support be provided on Sundays and Holidays and that existing coverage be increased to achieve an 80% rate of calls being returned within 15 minutes.

KOA Response: Our 2018 plan called for adding an additional resource in KOA Technology Support. While this individual was earmarked for K2 responsibilities, this shared resource has increased our scheduling capabilities and has expanded coverage for peak season. We do not anticipate this individual would enable the full ask of 80% return calls within 15 minutes, butwould provide support hours on Sundays.KOA has committed to Sunday support hours from 12pm to 5pm Mountain Time.

It should be noted that with the exception of Thanksgiving Day and Christmas Day, we have a team dedicated on every other holiday. Although there is no staffing on Thanksgiving and Christmas, a member of the team is on-call to respond to emergency situations.

Long-term, we have begun evaluating an outsourced Tier 1 support structure. One of the CTQs (Critical to Quality) in the proposal is 24X7, 365 coverage. As the evaluation moves forward, the costs of implementing this solution will be fully vetted to determine feasibility.


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