An Improving Economy Drives RV Sales Clearly, some sectors of the US economy are growing slowly, but the 4.9% increase in total 2015 RV shipments, or 374,246 units, which is the sixth consecutive year of growth since 2009, indicates greater consumer confidence and more disposable income. Even December, which is typically a slow month for the industry, ended 2015 on a high note, with 28,025 units shipped to retailers. This is a 4.8% increase over December 2014 and the best December for the industry since 2005. Travel trailers accounted for 63.9% of all RVs and campers shipped during 2015, with fifth-wheels the largest sector of travel trailers at 31.4%. Shipment of motorhomes totaled 47,400, with class-A and class-C dominating, at 21,900 and 22,100 units, respectively.

2016: A Bright Road Ahead The RV/camper industry kept the pedal to the metal, accelerating into January with a 10.6% increase in shipments, or 31,526 units, compared to January 2014. Not only is this the best January during the past 10 years, but also the second best since 1973. Although January’s record performance equals an adjusted annualized rate of more than 435,000 units, Dr. Richard Curtin, RV industry analyst, forecasts a 2.0% increase for 2016 to 381,100 units, with travel trailers and type-C motorhomes leading the way. According to data from RVT.com, a leading Internet classifieds sales site for new and used RVs, shopper traffic during February 2016 was 26.0% greater and emails generated for RV dealers and private sales were 20% greater than February 2015.

Preferring to Park Many RV owners prefer the Park Model RV (PMRV) option. It is a semi-permanent unit that is placed on an appropriate site to serve as a seasonal vacation home, camping cabin, beach cottage or hunting/fishing lodge. PMRVs are built on a single chassis and mounted on permanently affixed axles and wheels. They are not attached to the site, so owners are able to move them. Once in place, decorative siding is added to hide the axles, wheels and undercarriage. All PMRVs are manufactured to be less than 400 square feet, so they are not considered a manufactured home, avoiding the regulations for those larger, permanent structures. PMRVs’ square footage can be expanded with front and rear porches and decks.

Target Audience Trends According to a spring 2015 RV Rental Association survey, the rental market is expanding beyond couples and families with children to include rentals for hunting/fishing trips and weekend major sporting events. Hipcamp.com offers online listings and bookings for unique natural locations as state and national parks and RV parks become overcrowded. Many locations are underutilized private lands of farmers, ranchers and vintners. Millennials are attracted to class-B motorhomes because of their smaller footprint (influenced by the “Tiny Home” movement) and fuel economy, which is often double, triple and quadruple the mileage per gallon of gas-guzzling class-A and class-C units.

Advertising Strategies Since the prime target audience for RVs and campers are older adults and retirees, television is an excellent advertising medium to reach them; however, market penetration is apt to be better when TV is combined with outdoor and/or direct mail. Although fewer RV sales typically occur during the summer, dealers should consider a family vacation promotion that touts the extra room and enjoyment of road trips in an RV versus a car. It is also a good season to advertise RV rentals. When advertising to the Latino American audience, dealers may want to feature larger RVs and campers since Latino Americans are more likely to vacation and enjoy outdoor activities as an extended family, including multiple generations and uncles, aunts and cousins.

New Media Strategies Encourage (or provide an incentive) young adult customers of Park Model RVs to post photos, videos and testimonials of their experiences. With their busy lives, Millennials are more likely to prefer the semi-permanent PMRV lifestyle instead of road travel. Local dealers can generate buzz and goodwill by providing an RV to a local hero or deserving family for a weeklong vacation. Ask the recipient to upload photos and videos throughout their trip to social media to generate interest. The primary RV market of older adults are likely to be attracted to dealers that create and upload a series of videos to social media or a dedicated YouTube channel with maintenance and care tips as well as tips from RV owners that they’ve learned during their travels.