Challenges and Opportunities in the RV Market Amid Changing Travel Trends
The RV market saw a significant decrease in sales in 2022 following a surge in previous years. However, the industry is forecasted to stabilize in 2023, with increased interest from younger consumers. As inflation and COVID-19 concerns impact travel plans, camping emerges as a popular alternative. Campgrounds are enhancing their facilities to attract more RVers, despite facing challenges like staffing shortages. The shifting landscape presents a mix of challenges and opportunities for the RV industry moving forward.
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Presentation Transcript
Riding the Pandemic Sales Rollercoaster Unsurprisingly, the RV market experienced more than a 20% decrease in 2022 sales because sales increased substantially during 2020 and 2021 when consumers had government stimulus dollars and were ready to travel and enjoy the outdoors again. The RV Industry Association (RVIA) is forecasting total 2023 shipments of 391,499, which would be a 21% YOY decrease. Comparing the 2023 forecast to 2019 (406,070 shipments), however, shows the industry is returning to a normal shipment pattern. Used sales only decreased by 10% during 2022 but increased compared to 2019. Dealers want more used RVs because they can sell them quickly.
Hitting the Road During 2023 The RVIA 2023 RV Travel Intentions survey of leisure travelers found 67 million Americans expect to take an RV trip during 2023. The good news for the market is more younger Americans are planning these trips: Gen Zers at 49% and Millennials at 48%. Of even greater interest for the market is 50% of those surveyed who rented, owned or borrowed an RV during 2022 plan to buy a unit during 2023 and those purchase intentions include 41% of Gen Zers and 35% of Millennials. Saving travel dollars is a primary incentive. RVIA research shows an RV trip costs half of an equivalent plane ticket and hotel room. The survey also revealed other incentives, including more interest in outdoor activities and wanting to travel with family.
Camping Is the Travel Alternative Because of the effects of inflation, higher prices for most everything and continued concern with COVID-19, 74% of campers told Kampgrounds of America for its November 2022 Monthly Report that they changed their camping plans during 2022. During summer 2022, more than 34% of surveyed campers said they camped more because of their changed plans: 39% canceled other trips, 36% stayed closer to home or travel shorter distances and 35% spent less, a trend likely to continue during 2023. According to the report, 11% of respondents had already booked at least some of their 2023 camping plans, 12% expected to make their plans by the end of 2022 and 11% would start planning their 2023 camping trips during January and February 2023.
Campgrounds Improving to Attract More RVers The substantial increase in campers and RV enthusiasts during recent years has motivated campground owners/managers to improve their facilities, according to Woodall s Campground Magazine s Campground Owner and Manager Survey. Of those responding to the survey, 41% are planning site improvements, 21% accommodations and 36% amenities. More are adding RV hook-ups and 34% want to attract more motorhomes and 22% more fifth wheels. Like many businesses in the leisure/recreation sector, the surveyed owners/managers said staffing was their biggest barrier to growth at 37%, followed by funding/finances at 34%, time to work on growth/development at 29% and not enough space at 26%.
Factors Driving RV Purchases GoRVing in conjunction with Ipsos surveyed potential first-time new RV buyers during early 2022. A major finding was adults who spent more time pursuing outdoor experiences as a child were more likely to buy an RV as an adult. Some experience with RVs is another primary driver of more adults buying an RV. As with most consumer products, recommendations from family and friends are also a major motivator. The survey also revealed brands and dealers Websites and social media content, especially walkthrough videos or other high-impact visuals, don t provide consumers with as much information as they would like.
More RV Camping Insights According to the Winter/Spring 2022 2023 Campspot Outdoor Almanac, 61% of the campers responding to the survey said they were RV campers, followed by tent camper at 19%, glamper at 12%, cabin camper at 4% and car camper at 3%. The RV respondents to the survey said Grand Canyon, Las Vegas, The Campsites at Disney s Fort Wilderness in Florida, Yosemite National Park and Ginnie Springs, FL were their top five destinations for 2023. The survey also revealed RV campers most popular roadside attractions: state parks (26%); locations with water for a quick dip (20%); unique and local roadside attractions (16%); and hiking trails, historical markers, diners/dives and museums (10%).
Advertising Strategies The RV market s target audience has expanded beyond retirees to include younger adults and more families. Reach media like TV and radio are still prime advertising channels and are reinforced with direct mail, which Millennials like, and digital media for younger adults. Dealers may find it advantageous to launch and advertise a Women s-Only Weekend promotion since more women than men are indicated as RV owners and enthusiasts in the table on page 4 of the Profiler. Consider a Be a Kid Again Promotion, based on the GoRVing findings that adults who spent time outdoors as a child are more likely to buy an RV. Use nostalgic themes and images to evoke this connection with target audiences.
New Media Strategies Use the table at the top of page 3 of the Profiler as social media topics, explaining how an RV is the perfect vehicle to enjoy all these travel interests. Ask local RV club members to post comments and images about how they have pursued these interests. Dealers can benefit from having one or more local influencers who are young adults and avid RV travelers to share their travel and adventures to engage with Gen Zers and Millennials with an interest in RVs. Consider an online co-promotion with a local outdoor/camping equipment retailer to provide a discounted bundle of camping equipment for a qualifying RV purchase and discounted prices for RV accessories with a qualifying camping equipment purchase.
