RVers: Who's RVing?

Here is an interesting article on RVers and RVing trends. Especially these days, as the baby boomer generation approaches retirement, lifestyle choices such as fulltime RVing or extended stay RV travel grow in popularity. And RV travel can be an economical choice for weekend getaways and vacations.

The following article on RVers and market trends reprinted with permission from the RV Industry Association (RVIA) News Room:

• Primary demand for RVs remains robust, as indicated by improving dealer sales due to price discounting and strong RV show attendance. Dealer inventories have been reduced by retail sales, although low consumer confidence and America’s struggling economy caused consumers to delay major purchase decisions. A delay in purchasing means future sales potential and renewed growth in shipments.

• Despite the economic downturn, 15 new RV manufacturers began business operations in the past year. In response to shrinking dealer inventories and gradually improving sales, manufacturers and suppliers begun rehiring laid off workers and returning to five-day production weeks.

• The credit worthiness of RV consumers remains at the top of all credit seekers. The delinquency rate on RV loans was 0.95% from 1999-2007 vs. 2.0% for other consumer loans, according to the American Bankers Association Quarterly Delinquency Bulletin. Current limitations on RV credit are expected to gradually diminish over time since RV owners are, on average, excellent credit risks.

• Federal economic credit and stimulus packages, which include provisions to stimulate RV lending and friendly tax treatment for new RV purchases, may help promote sales and aid in the RV industry’s economic recovery. One provision in the stimulus bill provides a deduction for sales or excise taxes on the first $49,500 of a new motorhome purchase. Inclusion of RV consumer loans and RV dealer floor plan loans in the Term Asset-Backed Securities Loan Facility (TALF) could ease credit and stimulate RV lending. The Small Business Administration’s decision to guarantee loans made to RV dealers could further help the RV industry.

RV Travel Trends:

• RV ownership and travel is a great value. The 2008 PKF Vacation Cost comparison study showed that a family of four can save 27-to-61% on vacation costs by traveling in an RV, after factoring in ownership costs and fuel. Even with higher fuel prices, more than 80% of RV owners say their RV vacations cost less than other forms of vacation.

• Shorter trips close to home. Research shows that RVers spend more time enjoying campgrounds and less on the road to save fuel. With more than 16,000 campgrounds nationwide, RVers also save by staying closer to home.

• Fuel cost analysis. Analysis of potential fuel cost increases shows that fuel prices would need to more than triple over current levels to make RVing more expensive for a family of four than other forms of travel. “While fuel costs are a component of the overall vacation cost, fluctuations in fuel prices aren't significant enough to affect a family's decision of whether or not to take RV trips over other types of vacations," said Kannan Sankaran, PKF's lead researcher for the study.

• RV parks and campgrounds across the country report that reservations in 2009 were 8% better than they were in 2008. RV rentals were up 12% in 2009, according to a survey by the Recreation Vehicle Rental Association.

• IRS tax deduction. For most RV buyers, interest on their loan is deductible as second home mortgage interest.

• RV manufacturers are innovating to give consumers an array of product choices. Manufacturers are producing lightweight towables and smaller, fuel-efficient motorhomes. Green technologies such as solar panels and energy-efficient components are appearing on an increasing number of RVs.
• Lifestyle trends continue to spur demand for RVs. RV owners overwhelmingly said in recent surveys that their RV makes it easier to take more frequent weekend getaways or mini-vacations that accommodate busy family schedules.

• Go RVing ads build demand. More than two million consumers visited GoRVing.com in 2009 as the industry continued its aggressive outreach. The ads have been updated with a new theme line, “Go Affordably. Go RVing.” Details: GoRVing.com.

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