RV sales on the move, setting the table for aftermarket service business
Basking in the trend of vacationers bringing along their own lodging accommodations, the motorized camping industry – including its maintenance and repair providers – is enjoying a steady increase in recreational vehicle traffic.
“More than 9 million Americans own RVs because of the unmatched freedom and flexibility they provide when traveling,” says Richard Coon, president of the Recreation Vehicle Industry Association (RVIA).
“RV ownership continues to rise in large part because of the versatility and affordability of today’s RVs,” he explains. “While the recession created new economic realities for most Americans, RV manufacturers responded by designing products with the right mix of space, amenities and price points, further positioning RVs as the ideal way for families to share outdoor experiences together.”
New RV shipments are expected to reach 309,800 units this year, which is 8.4 percent above the 2012 total of 285,749.
According to a forecast by industry analyst Dr. Richard Curtin, director of consumer surveys at the University of Michigan, sales are likely to rise for a fifth straight year in 2014 as wholesale production is projected to reach 321,800 units, a gain of 3.9 percent over 2013’s anticipated figures.
The estimated amounts for 2013 would be an 87 percent increase from the industry’s recessionary low in 2009. Fueled by strong response to the “versatility, affordability and innovative designs of new models,” RV shipments through the first four months of 2013 shot up 13.3 percent compared to the same period in 2012. The industry has seen double-digit gains in conventional travel trailers, Type A motorhomes and Type C motorhomes.
“The favorable RV outlook is based on modest gains in jobs, incomes and household wealth,” says Curtin, who works closely with the RVIA. “Consumer budgets have changed, but they still hold steadfast preferences for the RV lifestyle.”
With people adopting a more realistic economic outlook, Curtin reports that the segment’s OEMs have responded by introducing an array of vehicles that provide “the same cherished RV experiences” while respecting family budget limitations.
“The RV industry will approach its next peak as the market demand for RVs continues to improve, particularly among baby boomers and younger buyers due to the ongoing efforts of the ‘Go RVing’ campaign and the new product offerings from manufacturers,” says Curtin, adding that “given the modest gains expected in the financial situation of likely RV buyers, this next market peak is likely to be approached gradually.”
The RV marketplace anticipates being bolstered over the next two years by rising home values and higher stock prices, thus boosting the willingness and ability of new RV shoppers to make a purchase.
“RVing is becoming more and more popular because it’s a convenient, comfortable and affordable way for families to spend quality time together and build memories that will last a lifetime,” says Coon.
About 19 percent of current RV owners engage in “seasonal” or “destination” camping, according to an RVIA survey. Destination campers leave their vehicle parked at one location for and entire spring or summer season – or longer – and travel back and forth to it using a car.
Many families are taking shorter, more frequent getaways in their RVs to accommodate busy schedules; 72 percent of RVers were planning to take more one- to four-day mini-vacations this year than they have in the past. Prime applications include:
- Sightseeing – 80 percent
- Cooking out – 79 percent
- Hiking – 58 percent
- Fishing – 57 percent
- Visiting friends and family – 54 percent
Other popular activities among RV owners include antiquing, biking, festivals or fairs, visiting museums, and attending family reunions and events.
Connecting with dealers
These vehicles have automotive servicing needs, of course, and the National RV Dealers Association (RVDA) is encouraging interested suppliers to attend the Sept. 30-Oct. 4 RV Dealers International Convention/Expo being held at the Rio All-Suite Hotel & Casino in Las Vegas.
Presented as a method “to take advantage of a new way to reach RV dealership staff for extended product and service training,” the event marks the launch of the “Vendor Training +plus” program. It is being implemented “because dealers want new ways to connect with suppliers who support their industry,” according to Convention/Expo Committee Chairman John McCluskey.
It is designed to give suppliers an opportunity “to step up their involvement” in the seminars being conducted, McCluskey said.
“Vendor Training +plus gives our business partners in the industry a powerful new way to connect with hundreds of key dealership staff who will be in Las Vegas for our meeting,” he explains.
“This new education program allows industry suppliers the time and space to train dealership personnel in the use and applications of their products and technology – in one place at one time,” says McCluskey. “Because the convention/expo is the only education event of the year exclusively for dealers and their staff, this represents a unique opportunity for suppliers to spend more time with the key staff who use their products in their dealerships.”
Reaching rental agencies
Aside from the dealership arena, there are potential aftermarket opportunities for maintaining RVs that are already on the road. Individual owners are in need of vehicle care, and a beckoning rental marketplace is also on the move.
“There are so many reasons to rent a luxury RV,” says Rob Tischler, CEO of the Allstar Coaches agency, which has outlets in California, Pennsylvania, Florida, Arizona, Nevada, New York, New Jersey, Delaware and Maryland. The company also offers on-demand deliveries to other locations throughout the nation.
“More and more tailgaters are stepping it up a notch and arriving at sporting and NASCAR events in style,” Tischler points out.
“RV rentals are also perfect for promotional tours such as political rallies, concerts or family and college reunions. And businesses can take advantage too,” he notes.
“RV rentals are ideal and cost-effective for advertising,” says Tischler. “For example, if a company is launching a new product, why not wrap it and drive it around a targeted demographic area and interact directly with potential consumers? It’s basically a 45-foot rolling billboard that you can take anywhere.”
Transactions are additionally arranged for use as business field offices and as temporary housing in the wake of disasters such as hurricanes, tornadoes, fires and other emergency situations.
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