RVs Rule the Road

Who is driving RV sales and why?

Canyon Vistas RV Resort, Gold Canyon, Arizona

There’s an RV for every family’s budget and needs. Photo above: Canyon Vistas RV Resort, Gold Canyon, Arizona © Rex Vogel, all rights reserved

If you’re one of the millions of Americans or Canadians planning to head out for a summer road trip, be prepared: RVs rule the road.

With prices ranging from $15,000 to just shy of $1 million, Americans and Canadian consumers have more options than ever when it comes to hitting the open road with a bed in tow.

For the big bucks your RV comes decked out with dual sinks in the master bathroom of a 46,000-pound diesel pusher built on a behemoth bus chassis. The Newmar King Aire also has Sleep Number beds, four flat-screen televisions, and a tablet to remotely manage the climate controls. Oh, and it also has a carbon-fiber steering wheel, and the driver sits in a captain’s chair with a built-in massager.

Canada’s number one Newmar dealer, Midtown RV in the southern Okanagan city of Penticton (British Columbia) sold 6 King Aires during the past 12 months.

“King Aire buyers are people looking for a modern contemporary design with the latest in residential amenities,” said Kalvin Stayberg, Midtown RV Vice-President and part owner.

Class A motorhome: 2015 Newmar King Aire

Class A motorhome: 2015 Newmar King Aire

“They also appreciate that the King Aire couples this modern design with the Newmar Heritage of quality, luxury, and power.”

While the King Aire may be over-the-top extravagant, buyers are demanding the same kinds of countertops and finishes they’re accustomed to having in their homes. Many RVs, for instance, have memory foam beds, tile floors, two bathrooms, and Corian countertops.

Those amenities are driving massive growth in what has been a sagging industry hit hard by a lousy economy and sky-high fuel prices. Last year RV dealers sold about 350,000 vehicles and expect even stronger growth this year. That’s a return to pre-recession levels not seen in nearly a decade.

Bottom-of-the-barrel fuel prices are also helping to drive interest in the RV lifestyle. Packing up the family for a summer vacation is less expensive than flying, especially when airlines with locked-in fuel costs haven’t yet passed along fuel savings to passengers. Camping is also more family-friendly and relaxing.

There’s been strong interest at both ends of the spectrum, from that $1 million King Aire to the 1930s-style teardrop trailers light enough to be towed behind a car and the always-popular Airstream.

Vistabule Introduces ‘Cab Forward’ Teardrop Trailer

Vistabule is a popular ‘Cab Forward’ teardrop trailer

Airstream celebrated a record year in 2014, with sales up 26 percent over 2013 numbers. The retro-glam travel trailer has found new life among an expanded clientele that includes baby boomers.

And smaller, cheaper, mini-trailers, like teardrop trailers, have also resurfaced as appealing options for road-trippers looking to go small.

Also receiving significant interest are “Tiny House” style RVs which some buyers remove from their wheels and use as a cozy home. The wood-sided Tumbleweed Tiny Homes were featured in an earlier post on Vogel Talks RVing.

Many consider small to be the new big. The small-house movement and a conscious move away from a consumptive lifestyle for many millennials.

But it’s not just the smaller and sleeker Airstream and teardrop trailers that are doing well. The whole industry has recently found a new stride. Behemoth motorhomes often with tag axles and travel and fifth wheel trailers—12, 28, 35 feet long—are hitting highways in the strongest numbers in years.

The design of the Cypress Tiny House RV by Tumbleweed makes use of the most interior space, by incorporating a corner porch and utilizing the extra room as interior space.

The design of the Cypress Tiny House RV by Tumbleweed makes use of the most interior space, by incorporating a corner porch and utilizing the extra room as interior space.

Some 32,045 RVs were shipped from manufacturers to dealerships in February of this year. Compare that to 29,700 in February 2007 and 10,300 in February 2009 when the industry hit rock bottom. The industry projects it will hit its top sales in nearly a decade this year.

Plummeting fuel prices don’t hurt, either, and it’s also worth noting that Baby Boomers—folks between 51 and 69—are retiring in droves. At the same time, however, RV buyers are actually getting a little younger. According to recent report, in 2011, the average age of an RV buyer was 48 years old. The fastest-growing age bracket was 35-54.

Mainstream Class A motorhomes and fifth wheel and travel trailers run anywhere from $10,000 to $600,000 and more. After financial ability, family was the leading factor in the decision to buy an RV. People perceive these vehicles as a way to spend time with family and friends, without the hassle and expense of flights, lodging, and food.

But unless you’re living in your RV full-time, it’s about as discretionary a purchase as one can imagine. It’s a big upfront investment, and that’s before fuel costs, insurance, and license. Buying any RV indicates a high degree of consumer confidence.

The increase in sales of Airstreams and teardrops are merely part of a larger trend. Now that people perceive an improve economy, they’re buying RVs of all stripes.

The success of the RV industry is due in part to the diversity of product that offers something for every income level. You don’t have to be rich to buy a smaller trailer and go camping.

Monument Valley © Rex Vogel, all rights

An RV will take you whever you wish to go including Monument Valley © Rex Vogel, all rights

And for those families who want to spend time together while getting back to nature, RVs have an undeniable attraction and is a lifestyle that’s second to none.

Worth Pondering…

The American dream is no longer about home ownership. The American dream is that people want to travel and see America by RV.

—Andy Heck, co-owner Alpin Haus to Greg Gerber, RV Daily Report

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