OutdoorResort-2020-Owner Survey Results Summary

2020 OWNER SURVEY RESULTS SUMMARY OUTDOOR RESORT PALM SPR INGS – JUNE 2020

Profile of Survey Respondents

Age Category 36 to 45.....................................1% 46 to 55.................................... 6% 56 to 65..................................35% 66 to 75. ................................. 41% Over 75....................................17% Gender Male........................................50% Female. ..................................50% Dog Owner No. ...........................................69% Yes: 1. ......................................23% Yes: 2+. .....................................8% Lot Owner Tenure Less than 3 years. ..............29% 3 to 5 years...........................25% 6 to 10 years..........................17% 11 to 20 years. ..................... 20% More than 20 years.............. 9% Rent Lot/RV No – I never rent my RV/lot to others............................... 90% Yes – I rent my RV/lot to others and occupy it myself sometimes......................... 9% Yes – I rent my RV/lot to others and never occupy it myself. .................................1% Annual Resort Residence Year round...............................4% 9 to 11 months........................ 2% 6 to 8 months. .................... 20% 3 to 5 months.......................65% Less than 3 months............. 9%

INTRODUCTION

Dear Owners:

In March the Owner Survey was sent to the Resort’s 2,000 owners (two surveys per household). A total of 891 owners completed surveys, for an overall response rate of 45%. Of the Resort’s 1,213 total households, 603 completed at least one survey, for a household participation rate of 50%. These response rates are very good and provide an accurate representation of all owners. The survey tested satisfaction with existing programs, services and facilities. It also obtained input on opportunities related to strategic issues the Resort could consider. The following is a summary of the key survey results. The entire Owner Survey Report is available for your review in the Resort’s office. Where applicable, the survey results are compared to McMahon Community Consultants’ database from other similar club-like communities recently surveyed across the nation.

Outdoor Resort Other Clubs/Communities*

53%

50%

45%

2020 OWNER SURVEY RESULTS SUMMARY 39% 42%

37%

30%

EXISTING FACILITIES, OPERATIONS & SERVICES – SATISFACTION & VALUE Owners’ Overall Resort Satisfaction Overall owner satisfaction at Outdoor Resort Palm Springs is close to average compared to other clubs and communities. Eighty-five percent of respondents are satisfied or very satisfied with Outdoor Resort, compared to an average of 83% at other clubs and communities. 0% 15% Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied 4% 3% 8% 1% 1% 2% 0% 0% 1%

Outdoor Resort Other Clubs/Communities*

Table 1-2

Strongly Agree Agree

Neutral

Disagree

Strongly Disagree

Outdoor Resort Other Clubs/ Communities*

16% 20%

52% 45%

23% 20%

8%

1% 3%

12%

Overall Club Satisfaction

59%

60%

Outdoor Resort Other Clubs/Communities*

53%

50%

45%

42%

39%

37%

*Other clubs and communities

30%

15%

0% Receive Value for Cost Sixty-eight percent of respondents agree or strongly agree they receive good value for their monthly HOA assessment and fees, which is close to the average of 65% at other clubs and communities. Only 9% disagree or strongly disagree, compared to an average of 15% at other clubs and communities. Strongly Agree Agree Neutral Disagree Strongly Disagree 4% 3% 8% 1% 1% 2% 0% 0% 1%

Outdoor Resort Other Clubs/Communities*

*Other clubs and communities

OUTDOOR RESORT PALM SPRINGS

Activity/Facility Importance & Satisfaction Using a rating scale from 5 (very important/very satisfied) to 1 (very unimportant/very dissatisfied), respondents were asked to rate the importance of various Resort activities and facilities as well as their satisfaction with each.

Activity/Facility

Mean % Important % Unimportant Mean % Satisfied % Dissatisfied

Overall Resort Appearance Overall Resort Landscaping Lot Services (Trash Pick-Up, Mowing, Irrigation)

4.7 4.7 4.6 4.6 4.5 4.4 4.3 4.3 4.3 4.3 4.3 4.2 4.3 4.1 4.1 4.1 4.0 4.0 3.9 4.0 3.8 3.7 3.4 3.2 3.1 4.5 4.5 4.4 4.3 3.4

99% 98% 97% 96% 96% 92% 89% 87% 86% 86% 84% 83% 81% 80% 78% 76% 75% 74% 74% 73% 63% 59% 42% 37% 32% 91% 89% 84% 82% 44%

0% 4.4 0% 4.5 1% 4.0 0% 4.2 0% 4.0 1% 4.0 1% 3.8 1% 3.7 3% 4.0 1% 3.9 3% 4.0 4% 4.2 7% 4.3 4% 4.0 5% 4.0

95% 95% 83% 88% 83% 81% 75% 70% 81% 77% 80% 88% 84% 75% 78% 45% 75% 58% 77% 81% 66% 22% 47% 48% 36% 79% 81% 72% 48% 51%

2% 2% 9% 3% 5% 9% 9%

Guardhouse & Gate

Appearance of Owners’ Lots ES Clubhouse Facilities Appearance of Owners’ RVs

Administration Services

10%

ES Clubhouse Swimming Pool

7% 9% 4% 2% 2% 6% 3%

LP Clubhouse Facilities

LP Clubhouse Swimming Pool

ES Owners’ Lounge

Golf

Resort Social Events

Fitness

Main Laundry Facility Dining (Bella Roma) Maintenance Yard Convenience Store

3.2

27%

6%

6% 4.0 3% 3.6 3% 4.0 7% 4.1 12% 3.9

5% 9% 2% 2% 4%

Golf Shack Area

Pickleball

Dog Relief Area

2.6

45%

19%

Tennis

19% 3.6 22% 3.7 24% 3.3 2% 4.0 2% 4.0 4% 3.8

3% 2%

Hair Salon

Dining (Espresso Bar)

12%

Satellite Areas Restroom/Shower Areas

7% 6%

Swimming Pools

Hot Tubs Laundries

12% 34%

3.2

4%

Tennis Courts

16% 3.6

4%

2020 OWNER SURVEY RESULTS SUMMARY

EXISTING FACILITIES, OPERATIONS & SERVICES

Activity/Facility Importance As shown on the previous page, all but four of the Resort’s offerings are important to majorities of respondents, and most are important to over 75%. The most important Resort offerings are those rated important by over 90% of respondents. Those are:

Importance & Satisfaction Value Boundary™ Charts for Resort Activities & Facilities The matrices on the next page plot the importance and satisfaction ratings for selected activities and facilities. The goal is for all items to be above the Value Boundary™ Curve (red line), especially those to the far right which are most important to respondents. Activities and facilities below the Curve need improvement in satisfaction based on their relative importance to respondents. Value Boundary™ Curve The curved line displays the satisfaction threshold separating the acceptable and unacceptable ratings for Resort activities and facilities. This line is curved to reflect the higher satisfaction threshold expected for activities and facilities of higher importance to owners. It is derived based on McMahon Community Consultants’ experience at over 2,000 clubs and communities. Quality Drivers (Green Area): Offerings in this area are key drivers of the experience. They are highly important and achieve high satisfaction ratings. Priority Improvements (Red Area): Offerings in this area are highly important, but low satisfaction ratings place them below the Value Boundary™ Curve. They should be targeted for improvement to move them into the Quality Drivers area. Significant Enhancers (Yellow Area): Offerings in this area are of moderate importance, but they have relatively high satisfaction ratings. This allows them to contribute positively to the overall experience. Missed Opportunities (Orange Area): Offerings in this area are of moderate importance, but they have satisfaction ratings that place them below the Value Boundary™ Curve. Improving offerings in this area are lower priority than making improvements to those that fall in the Priority Improvements area.

• Overall Resort Appearance (99%) • Overall Resort Landscaping (98%) • Lot Services (97%) • Guardhouse & Gate (96%) • Appearance of Owners’ Lots (96%) • ES Clubhouse Facilities (92%) • Satellite Restroom/Shower Areas (91%)

Activity/Facility Satisfaction For activities or facilities of highest importance to respondents, McMahon Group recommends that communities achieve satisfaction ratings of 4.0 or higher, with at least 75% of respondents satisfied and no more than 10% dissatisfied. Thus, it is a positive survey result that Outdoor Resort Palm Springs achieves this level of satisfaction for all of the offerings that are of highest importance to respondents.

% Satisfied

% Dissatisfied

Activity/Facility Overall Resort Appearance Overall Resort Landscaping

Mean

4.4 95% 2%

4.5 95% 2%

Lot Services (Trash Pick-Up, Mowing, Irrigation) Guardhouse & Gate

4.0 83% 9%

4.2 88% 3%

Appearance of Owners’ Lots 4.0 83% 5% ES Clubhouse Facilities 4.0 81% 9% Satellite Restroom/ Shower Areas 4.0 79% 7% Only six of the Resort’s offerings received dissatisfaction percentages of 10% or higher: • Administration Services (10% dissatisfied) • Satellite Hot Tubs (12% dissatisfied)

• Main Laundry Facility (27% dissatisfied) • Satellite Laundries (34% dissatisfied) • Dog Relief Areas (45% dissatisfied) • Dining – Espresso Bar (12% dissatisfied)

OUTDOOR RESORT PALM SPRINGS

Quality Drivers Overall Resort Landscaping Overall Resort Appearance Guardhouse & Gate Lot Services

Appearance of Lots Restrooms/Showers ES Owners’ Lounge

ES Clubhouse Social Events Golf Shack Area Dining – Bella Roma Satellite Swimming Pools Golf Clubhouse Swimming Pools Fitness Priority Improvements Appearance of RVs Administration Services Main Laundry

Satellite Laundries Maintenance Yard LP Clubhouse Satellite Hot Tubs

Significant Enhancers Convenience Store

Hair Salon Pickleball

Missed Opportunities Dog Relief Areas Dining – Espresso Bar Tennis Satellite Tennis Courts

2020 OWNER SURVEY RESULTS SUMMARY

FUTURE & STRATEGIC ISSUES Potential Future Improvements

Respondents were asked to rate the importance of a variety of potential future improvements. Shown below are the potential improvements and the percentages of respondents rating each as important and unimportant. Neutral responses are not shown.

Potential Improvement

% Rating Important % Rating Unimportant

Add a pet park

61% 43% 43% 43%

26% 24% 23% 30%

Upgrade the interior appearance of the LP Clubhouse Upgrade the appearance of the Bella Roma restaurant Add a bar area (indoor and outdoor) at the Bella Roma restaurant Upgrade the general exterior appearance of the landscaping signage, roads, etc. Create a 19 th Hole casual restaurant with an attractive bar at the ES Clubhouse Purchase well-located lots if and when they become available for adding future Resort facilities/activities Upgrade the interior appearance of the ES Clubhouse

40%

28%

39%

37%

39% 35% 35% 32% 32% 29% 28% 26%

33% 29% 39% 33% 39% 40% 44% 39%

Create an outdoor bar at ES

Add more space for meetings and activities such as crafts, painting, lapidary, woodworking, sewing, etc.

Add bocce courts

Create an outdoor kitchen area at ES Add spa and massage services Add a fitness group exercise room

Provide an all-sports pro shop at the ES Clubhouse in conjunction with the starter shack or other facilities to provide balls, equipment and other accessories

17%

56%

OUTDOOR RESORT PALM SPRINGS

Importance of Improvements Based on Demographic Some of the improvements are more important to specific segments of respondents than they are to the entire respondent base.

% RATING IMPORTANT

Potential Improvement

All

Group

% of Group

Add a pet park

61% 43%

Dog Owners Under Age 56

86% 51%

Upgrade the appearance of the Bella Roma restaurant Add a bar area (indoor and outdoor) at the Bella Roma restaurant

43% Purchased Lot Last 5 Years

50%

Under Age 56 Age 56 to 65

41% 48% 45% 33% 34% 45% 51% 47% 33% 37% 32% 33%

Create an outdoor bar at ES

35%

Purchased Lot Last 5 Years

Women

Add a fitness group exercise room

26%

Purchased Lot Last 5 Years

Under Age 56 Age 56 to 65

Create a 19 th Hole casual restaurant with an attractive bar at the ES Clubhouse

39%

Purchased Lot Last 5 Years

Under Age 56 Age 56 to 65

Add spa and massage services

28%

Women

Purchased Lot Last 5 Years

2020 OWNER SURVEY RESULTS SUMMARY

FUTURE & STRATEGIC ISSUES

Recommend Outdoor Resort Ninety percent of respondents agree they would recommend lot ownership at Outdoor Resort Palm Springs to their friends and associates, 6% are neutral and only 4% disagree. The following are comments provided by respondents as to why they would or would not recommend Outdoor Resort. Reasons Would Recommend

Reasons Would Not Recommend • “As a new owner I would say that the inconsistent application of rules has been a source of stress and puzzlement.” • “HOA’s continue to increase with no appreciable benefits and the resort continues to cater to dog owners at the cost and destruction of the landscape.” • “Friends have looked here but unfortunately the few old rigs were a bit of a turn off perpetuating a bad image of the lifestyle.” • “Until the resort addresses the issues of unclean entry to laundry facilities, club houses, swimming pools, and improve communication between owners and the administration, I can’t recommend anyone to purchase here.”

• “One of the nicest resorts in the country with a perfect mix of weather, location, amenities and affordability.” • “This is the best RV resort in the South West. Nothing Better in CA, NV or AZ.” • “Active, friendly, social, financially stable and well managed.” • “Beautiful resort, friendly, always enjoy the view coming thru the park, feel very safe, everyone greeting each other with a good morning, aren’t we lucky to live here.”

Clubhouse Facilities Sixty-nine percent of respondents feel that at least some LP Clubhouse improvements are needed and 31% feel the facilities are fine as they are. Fifty- seven percent of respondents feel that at least some ES Clubhouse improvements are needed and 43% feel the facilities are fine as they are.

OUTDOOR RESORT PALM SPRINGS

Strategic Issues Respondents were asked to rate their agreement with several statements related to the Resort’s facilities:

Statement

% Agree % Neutral % Disagree

It is important for the Resort to enhance and maintain its facilities in order to attract new owners and maintain property values To reduce operating costs, the Resort should convert all non-golf course grass areas in the Resort to artificial turf To reduce operating costs, the Resort should require all lot owners to convert to artificial turf or decomposed granite (DG) The Resort should investigate an alternative mailbox system to free up space in the clubhouse mail rooms for other uses

87%

9% 4%

55%

26% 19%

62%

23% 15%

54%

14% 32%

CONCLUSION The owner survey results are very helpful in identifying owners’ satisfaction with the Resort in regards to the existing facilities, offerings, operations and strategic issues considered important for today’s owners and the Resort’s future. This information will be a valuable resource to the leadership and management as they make short term operational improvements and develop long-range plans for the Resort. McMahon Community Consultants thanks all owners who participated in the survey process.

Respectfully submitted,

William P. McMahon, Sr. Chairman

670 Mason Ridge Center Drive • Suite 220 St. Louis, MO 63141 314.744.5040 McMahonGroup.com

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