The Outdoor Recreation Industry's Pandemic Surge

The outdoor recreation sector experienced substantial growth for years, but the pandemic dramatically accelerated this trend. Businesses offering services such as camper van rentals, private campsites, and trail-finding applications gained relevance with millions of new users as COVID-19 restrictions limited indoor activities. This expansion built upon an already existing increase in outdoor pursuits.

Growth of Outdoor Startups

Companies like Outdoorsy, AllTrails, Cabana, Hipcamp, Kibbo, and Lowergear Outdoors have all registered significant expansion. Sustaining this momentum, however, requires converting pandemic-era newcomers into individuals with a lasting passion for outdoor experiences.

Pre-Pandemic Trends

Several factors were already contributing to a growing interest in outdoor activities. These included increased social media engagement, a rising awareness of environmental issues, and the growing concentration of populations in urban centers. Between 2014 and 2019, the number of individuals camping more than three times annually increased by 72%, largely driven by young millennials, families with children, and participants from diverse ethnic backgrounds.

The Impact of 2020

However, 2020 presented a unique situation. Months of stay-at-home orders, widespread closures, and the need for physical distancing transformed outdoor spaces into the primary venue for safe social interaction. For example, the Lewis and Clark Recreation Area in South Dakota witnessed a 59% surge in visitors between 2019 and 2020.

Consumer spending on outdoor recreation reached $887 billion in the pandemic year, as reported by the Outdoor Industry Association. This figure surpassed expenditures on both pharmaceuticals and fuel.

Continued Growth Projections

This growth is projected to continue. The market for hiking equipment alone is anticipated to reach $7.4 billion by 2027, representing a compound annual growth rate of 6.3%. Camping and caravanning are experiencing an even more pronounced upswing.

With international travel curtailed, vacation plans shifted from overseas destinations to domestic road trips, self-contained rentals, and camping. The camping and caravanning market was valued at nearly $40 billion in 2020 and is forecast to increase by 13% to just over $45 billion this year.

Startup Performance During the Pandemic

Despite an initial decline in activity due to the closure of national parks and private campsites, many outdoor startups experienced a breakthrough year. Outdoorsy, the peer-to-peer camper van rental platform, reported that 44% of all bookings in the company’s history occurred in 2020.

Hipcamp, a campsite booking platform, stated that it distributed three times as much revenue to landowners in 2020 compared to 2019. Furthermore, the work-from-home lifestyle attracted a new wave of customers; Cabana, a camper van rental startup, reported that 70% of its 2020 customers had never rented a camper van or RV before, with an additional 26% having done so only once.

Popular Activities and New Participants

A report commissioned by the Outdoor Industry Association revealed that the most popular outdoor activities among newcomers were those accessible close to home: walking, running, and bicycling.

The pandemic did, however, provide a modest boost to participation in camping, climbing, backpacking, and kayaking. This was fueled by an influx of women, younger individuals, more ethnically diverse participants, urban dwellers, and those with slightly lower incomes venturing into the outdoors.

Sustaining the Momentum

To capitalize on the pandemic’s outdoor boom, these startups must actively engage this new demographic shift. According to the report, approximately 25% of those who began new outdoor activities during the pandemic do not intend to continue them once the pandemic subsides.

Expanding Access to Outdoor Experiences Through Startups

A growing number of startups are focused on making outdoor activities more accessible. However, venturing into nature can often feel daunting due to the necessary gear, required skills, unfamiliar environments, and safety concerns. These companies aim to reduce these barriers to entry, simultaneously fostering business growth.

Cabana founder Scott Kubly observes that extensive user guides – “2,000 articles with two dozen tips” – indicate a product’s inherent complexity. He believes this highlights significant friction in the user experience. For widespread adoption, products must be consistently reliable and exceptionally easy to operate.

Currently, only approximately 0.5% of the U.S. population embarks on rental van or RV trips annually. Organizing an outdoor excursion demands considerable time, encompassing location selection, campsite availability checks, meal and water planning, and waste disposal logistics. This planning intensifies for road trips or backpacking, requiring new location scouting every few nights.

Kubly points out that a five-day trip can easily necessitate a ten-hour planning commitment. He argues that the ratio of planning time to actual relaxation time is often unfavorable.

Ron Schneidermann, CEO of AllTrails, contrasts traditional app engagement metrics with a key performance indicator specific to his company: “time spent on trail.” Evaluating this metric requires a long-term perspective, often spanning months or even years.

AllTrails prioritizes accessibility and simplicity for newcomers. The platform utilizes meticulously curated trail routes, advanced filtering tools, and, crucially, downloadable maps to empower anyone with an internet connection and a smartphone. This approach distinguishes it from competitors like Gaia and OnX, which cater to more experienced outdoor enthusiasts.

The shift towards mobile technology has been pivotal for AllTrails. The outdoor industry uniquely requires consideration for offline functionality as a core strategic element. Improvements in GPS technology and increased storage capacity have alleviated anxieties associated with hiking and exploration, yet simultaneously present engineering challenges.

“A significant portion of our mobile app’s usage occurs offline,” Schneidermann explains. “Ensuring stability, reliability, and user trust when a data signal is unavailable is a major focus of our development efforts and investment.”

This presents a complex technical hurdle, demanding robust solutions to maintain functionality in remote areas. Offline access is critical for a positive user experience.

The Expanding Influence of “Van Life” on the Travel Industry

The accessibility of local hiking, enhanced by platforms like Ron and AllTrails, has spurred an even more significant transformation in travel and lifestyle – the growing popularity of “van life,” whether as a temporary escape or a permanent relocation. Individuals are increasingly choosing to exchange small urban dwellings for customized vans equipped with essential amenities like kitchens, sleeping quarters, and restrooms, granting them freedom to explore the outdoors.

Outdoorsy, primarily catering to vacationers, has surpassed $1 billion in sales and boasts a user base of 40 million. The company secured $75 million in funding in 2019, led by Aviva Ventures.

Jeff Cavins, CEO and co-founder of Outdoorsy, explained, “Initially, we envisioned building a vehicle marketplace. However, we quickly discovered that our users perceived it as something more – an experience. It’s akin to mobile accommodations.”

The entire outdoor sector must now operate with the dynamism of a thriving travel business. Both Outdoorsy and Hipcamp have broadened their reach into international markets. Outdoorsy now operates in 14 countries, including Italy, France, and Croatia, while Hipcamp extends to Australia, Mexico, select European nations, and Canada. Providing comprehensive education and information is crucial, alongside maps, vehicle rentals, and gear.

Businesses must offer guidance on equipment, safety protocols, weather conditions, regional geography, and specialized skills such as climbing, hiking, skiing, or whitewater rafting, in addition to their core offerings.

Dallas Shewmaker, proprietor of Lowergear Outdoors, a national gear rental service, notes that he dedicates a substantial amount of time to providing outdoor guidance to customers, comparable to the time spent on rentals. To assist beginners, Outdoorsy has established a concierge service, and AllTrails provides curated trail guides.

While Outdoorsy utilizes a peer-to-peer rental model, Cabana concentrates on designing and constructing camper vans specifically for vacationers, rather than those intending full-time living. Many converted vans lack dedicated luggage space or necessitate converting living areas into sleeping arrangements daily, which is impractical for many travelers.

According to Cabana’s founder, guests often leave vans permanently configured as beds because they don’t have the time to repeatedly convert the space. This represents suboptimal utilization of the vehicle’s design.

Cabana vans also feature grey-water tanks – for collecting water from sinks, showers, and toilets – with double the capacity of standard camper vans, eliminating the need for frequent emptying during a typical two-week trip.

Van rental companies like Outdoorsy and Cabana operate at the intersection of the vehicle, outdoor recreation, and travel industries. Kibbo, a newer entrant, has added a fourth dimension – housing. Decreasing costs for composting toilets, solar power systems, and satellite internet have made off-grid living and remote work increasingly viable and appealing.

Kibbo is capitalizing on the nomadic lifestyle trend by establishing hubs where van dwellers can park for short periods, offering a base for work, reliable Wi-Fi, social interaction, and productivity before resuming their travels. “Individuals desire weekend backpacking trips in places like Yosemite,” stated Colin O’Donnell, founder of Kibbo. “However, they also seek a consistent location for weekday work, dependable internet access, and community. We provide this central point, reducing the challenges of van life and preventing reliance on locations like Walmart parking lots.”

Addressing Overcrowding by Expanding Access to Private Lands

A growing movement, exemplified by companies like Kibbo, is focused on facilitating public access to privately owned land. The increasing popularity of outdoor activities, coupled with greater accessibility, has resulted in significant overcrowding on traditionally public lands. Yosemite National Park, for instance, has experienced a surge of one million additional visitors annually over the last decade.

Furthermore, overall visitation to national parks rose by 14% between 1999 and 2019, highlighting a consistent trend of increased demand.

Hipcamp's Evolution

Initially conceived as a platform for booking campsites on public lands, Hipcamp, founded by Alyssa Ravasio, has strategically shifted its focus. The company now concentrates on providing opportunities for nature enthusiasts to explore and enjoy private properties.

Ravasio recounts that early efforts to promote lesser-known public campgrounds often met with resistance. Users expressed concerns about the exposure of their favored, secluded spots, fearing increased traffic and diminished experiences.

“We would feature a unique campground within a national forest, and subsequently receive complaints,” she explained. “People didn’t want their ‘secret spots’ publicized, worried about them becoming overrun.”

This feedback was instrumental in Hipcamp’s transition towards collaborating with private landowners. The core mission remains to encourage greater outdoor participation, but recognizing the limitations of overused public spaces.

Benefits of Private Land Access

Currently, Hipcamp provides access to approximately half a million acres of private land, exclusively available through its platform. This expansion generates new outdoor recreational opportunities for the public.

Landowners also benefit, receiving alternative income streams that can incentivize them to preserve their land rather than pursue development or logging. This approach supports conservation efforts.

The platform has also proven beneficial to businesses affected by the COVID-19 pandemic, offering a new revenue source for venues like wedding locations.

Leveraging Government Resources

Recreation.gov, the federal government’s online booking system for campsites and permits across national, state, and county lands, is a vital resource for many outdoor-focused companies. This includes those specializing in access to private properties.

A key development was President Obama’s executive order mandating open-source access to federal data. This allowed Ravasio to integrate Recreation.gov data into Hipcamp’s API, creating a centralized information hub.

Hipcamp recently integrated its API with California’s state park system. This integration displays campsite availability directly on the Hipcamp platform, with bookings directed to ReserveCalifornia, the state’s reservation system.

Collaboration, Not Competition

Ravasio emphasizes that Hipcamp does not view Recreation.gov as a competitor. “We can now display real-time availability for sites like Upper Pines in Yosemite, for example,” she stated.

“Instead, we are enhancing the existing infrastructure of our public lands system by providing additional information and access points.”

Expanding RV and Camper Van Options

Recognizing the growing demand for recreational vehicles, the federal government has also taken steps to expand options. In the third quarter of 2020, Outdoorsy partnered with the U.S. Department of the Interior.

This partnership designated Outdoorsy as the exclusive camper van and RV booking platform on Recreation.gov. The site’s RV rental page now directly links to Outdoorsy’s booking services.

Industry Consolidation: A Potential Outcome of Fragmentation

The realm of outdoor recreation, once a specialized pursuit, has transitioned into the mainstream, mirroring the evolution of many other sectors. Consequently, it now faces similar challenges. National parks, designed for broad accessibility, often cater to beginners.

However, contemporary consumers prioritize personalized and distinctive experiences, rejecting the feeling of mass production – a trend exemplified by the preference for Airbnb over conventional hotels. The outdoor industry is responding by reimagining existing products to appeal to a new demographic.

Kibbo’s O’Donnell notes that the company is frequently miscategorized as simply an RV park. While RV parks maintain popularity, they don’t align with Kibbo’s target audience. He argues that traditional camping, even within national parks, can feel commonplace, whereas the current generation desires immersive experiences in exceptional and memorable locations.

The demand for unique experiences fostered by specialized businesses has led to significant fragmentation within the industry. Initially, the internet streamlined outdoor recreation planning. Campers no longer needed to contact multiple ranger stations; platforms like Recreation.gov and Hipcamp provided centralized booking.

However, subsequent industry expansion has resulted in increased complexity. Today’s outdoor enthusiasts often interact with three or four separate entities to secure equipment, vehicle rentals, lodging, campsites, and recreational information. This complexity suggests a potential wave of consolidation is approaching.

Similar to Airbnb’s expansion into travel activities with Airbnb Experiences, outdoor accommodation startups – such as Outdoorsy and Hipcamp – may seek to broaden their offerings to include outdoor activities. Outdoorsy already provides road trip guides, and integrating options like climbing retreats or guided river rafting trips is a logical progression.

Hipcamp could utilize its network of private landowners as outdoor guides, a practice Ravasio indicates is already occurring informally. Furthermore, a partnership between AllTrails and retailers like Sports Basement or REI could facilitate comprehensive trip planning for beginners, encompassing equipment rentals and in-store traffic generation.

Should these newly adopted outdoor habits endure beyond the pandemic and into the future, the outdoor industry is projected to become an increasingly influential force within the travel sector.