All Forum Posts by: Ken Latchers

Your assertion on hipcamp doing well because of the Venture Capital behind it is still a wild guess. Everyone think they can predict the stock market and everyone is wrong long-term.

Originally posted by @Blaine Alger:

@Ken Latchers

Once again you are right, this is a STR forum and has nothing to do with Venture Capital. BUT ... the main issue that we have been debating is the potential for success of Hipcamps business model (which happens to involve STR). I believe that VC involvement with the company is a good indicator of future success and growth which will lead to more demand and more users which in turn will open up more opportunity for real estate investors to potentially use this as a strategy for their properties.

I agree with you that venture capital is a lot more of a guessing game than a science but the firm that participated in Hipcamp's funding, Andreessen Horowitz, is no ordinary VC firm. This is the same firm that invested in Airbnb (a STR platform that we are all very familiar with) and a handful of other billion dollar companies (Lyft, Pinterest and Slack to new a few). They have also generated over 10 BILLION in profits over the last decade, so if they feel confident enough to put their money where their mouth is in regards to the success of Hipcamp, then I feel comfortable making the assertion that Hipcamp will experience substantial growth in the coming years and solidify its place as an acceptable option for short-term rentals.

Here is another article regarding Andreessen Horowitz success if you care to read:

https://www.forbes.com/sites/alexkonrad/2019/04/02/andreessen-horowitz-is-blowing-up-the-venture-capital-model-again/#28e209b27d9f

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venture capital is wrong quite a lot. Not sure why you keep bringing this up. this is a str rental forum, not a stock investment type site. lets stick to the topic and not extol the virtues of a particular company...

Originally posted by @Blaine Alger:

@Ken Latchers

There is no doubt they still have ALOT to prove as a company but I think the fact that VC firms are willing to invest their time and money into them is a very good sign. Venture Capitalist don't just dump millions and millions of dollars into a company to see them be unsuccessful. There are a lot smarter people than me and you who are running these investment funds and they probably see stuff that we don't.

Here is an article from VC firm Andreessen Horowitz outlining some of the reasons they choose to participate in Hipcamp's Series B Funding:

https://a16z.com/2019/07/24/hipcamp/

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My point is that what I see from hipcamp here is just a me too trying to spin something that has been around for decades and it's already very well represented both by companies and by parks and by guide books and by listing sites.

in other words, nobody struggles to find a place to put their RV. There is nothing here that is the Airbnb of anything. Airbnb changed how people view listing their home and staying with others. I don't see hipcamp doing anything that unique. There are already glamping sites that are established. And As in people saying "oh thank heavens for this site, I had no idea where park my RV!" Everyone with an RV already knows how to find a place to camp it.

I tested in my area, which is a pretty popular vacation area. I pretty much see places that are just as expensive is going with KOA or something like that. A lot of the ones I already know about are what they are showing.

interesting, but not really disruptive. And you can find a lot of the stuff on Craigslist or other sites anyway. And I don't have to pay a middleman that way

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having done and hoping to do are two completely different things. There are lots of companies that try to be disruptors in various Industries and they're more like hiccupers. Getting backing really has nothing to do with getting success. Is still nothing but hope until proven.

Originally posted by @Blaine Alger:

@Ken Latchers

Everything you mentioned above is all facts and I see where you are coming from. However, I would argue that Hipcamp and Airbnb are not even competitors. Sure, they have the same business model but they offer 2 different types of experiences and have different target markets. Maybe a good way to look at it would be that Airbnb is looking to disrupt the hotel industry as Hipcamp is looking to disrupt the camping industry.

I will say that there is no doubt that Airbnb is a giant compared to Hipcamp. However, with the funding they have attracted from venture capitalists in the last year and the increasing trend of people wanting to experience the outdoors, I think Hipcamp has some major potential to grow in the coming years and possibly provide investors with new opportunities.

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In the vacation rental space, it is dominated by Airbnb, VRBO in booking.com. There are several hundred other players that barely register on the map.

The reality is that hipcamp may look good BUT the above mentioned sites get all the traffic because they spend billions in advertising. If hipcamp doesn't spend a lot also, then again they won't be the Airbnb of anything.

Originally posted by @Blaine Alger:

Originally posted by @Ken Latchers:

This is not just a simple buy land and rent. RV people want Power and water and waste to their camping spot. There's already a ton of campgrounds that do the same thing. There are lots of national and state parks where you can use an RV.

Zoning is a lot bigger than u think, even in rural areas. People are struggling to find places for tiny houses for rental.

Thanks for the input Ken.

I have heard the zoning issue brought up several times throughout this discussion but my thoughts on the subject is that any property that would be suitable for a Hipcamp site would be far enough outside the main metropolitan area that zoning would be fairly relaxed.

You do make a good point with the RV hook-ups. I do not know a whole lot on it, but I would guess it would be a significant investment to get the necessary hook-ups installed on your land.

I think Hipcamp is more of an alternative for state and national park campgrounds. In alot of popular parks across the country, sites can get booked up months in advance. Any even if you are able to book a site, some people don't want to camp right on top of one another. They would rather have some space to themselves outside the park but still close enough to access it.

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We are pretty much a weekend Market, so it will only be that I require two days minimum instead of allowing couple of one day bookings back to back

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Zoning is a lot bigger than u think, even in rural areas. People are struggling to find places for tiny houses for rental.

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I am not worried about the tenants at all. I have only accept if people are employed in essential Industries or have a guaranteed payment such as Social Security.

and people who think they will stay on my dime will be reminded that when the Courts open any evictions are prosecuted and that their credit history will be in the crapper for up to 10 years with an eviction proceeding

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most people overthink dynamic pricing

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It works if you stop mixing business with pleasure. Planning to use it a month of each peek season makes it not make much sense.

in addition, you have to throw out all the Play Books and everything you learned about short term rental because of this pandemic. The future will be vastly different than the past. Also don't put too much stock into mr. only the South works above. There are crappy markets in the south and great markets in the North. That is not really true.

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All Forum Posts by: Ken Latchers

Ken Latchers has started 77 posts and replied 1572 times.

Post: What do you know about Hipcamp? ( Airbnb of camping)

Post: What do you know about Hipcamp? ( Airbnb of camping)

Post: What do you know about Hipcamp? ( Airbnb of camping)

Post: What do you know about Hipcamp? ( Airbnb of camping)

Post: What do you know about Hipcamp? ( Airbnb of camping)

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Post: What do you know about Hipcamp? ( Airbnb of camping)

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