KOA Santa Cruz positions Kampgrounds of America in $7B glamping market
The 500-location network targets budget-conscious families as luxury outdoor accommodations expand across California.
Kampgrounds of America is leveraging its scale and established infrastructure to capture share in the glamping sector, which is projected to reach $7 billion globally by 2033. The operator's KOA Santa Cruz location exemplifies a strategy to offer glamping experiences at price points significantly below independent luxury outdoor brands entering the market.
The glamping category—which blends camping's outdoor appeal with hospitality amenities—has attracted considerable capital from luxury hospitality operators over the past five years. Unlike boutique entrants targeting affluent travelers, Kampgrounds of America is positioning its network around accessibility for families with moderate discretionary spending.
The company operates over 500 locations across North America, a distribution advantage that allows it to offer standardized accommodations and services at scales that independent competitors cannot match. KOA Santa Cruz serves as a test case for integrating glamping offerings into existing campground infrastructure, allowing the operator to test demand and operational models without the capital intensity of ground-up development.
Market research on glamping adoption suggests penetration remains limited to higher-income households, particularly in California where vacation rental costs have shifted middle-income travelers toward alternative accommodations. Kampgrounds of America's entry targets that middle market, where price sensitivity remains a primary decision factor alongside convenience and experience quality.
The operator's positioning as "the most accessible option" for glamping in California reflects a deliberate differentiation from luxury-first competitors. Rather than compete on amenities or exclusivity, Kampgrounds of America is leveraging existing brand recognition and operational economies to offer lower barriers to entry for families exploring the segment.
The move suggests that as glamping matures from niche offering to mainstream category, distribution networks and affordability will become competitive advantages alongside design and hospitality service—a dynamic that could reshape how luxury outdoor brands approach market expansion.