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Millennials Fuel The RV Boom

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Millennials Fuel the New RV Boom

With the summer season drawing near and outdoor sites beckoning, most people are either purchasing or putting a down payment fon a new travel trailer.

Newbie recreational vehicle buyers are anticipated to push sales to a whole new record level this year, the highest since the Recreation Vehicle Industry Association started keeping track of sales in 1979. Manufacturers plan to ship 446,000 RVs in 2017, up 3.6% from previous year’s which was as well a record.

But even more inspiring for the manufactures is the age of the buyers. Sales are increasingly being driven by young enthusiasts looking for inexpensive, functional vacation travel, not only retired people trying to tour the country in motor homes. Experts say that reduced gas prices, favorable interest rates and a heightened interest in the outdoors makes more People see this as a good time to buy an RV. RVs exploit Americans’ values and desires to go outdoors, experience nature and see their families in a way that doesn’t hurt their wallets.

Trailers constitute a huge portion of this growth, right now accounting for 87% of the units marketed. Buyers are almost always Millennials, those in their 20s or early 30s, and many young couples who don’t have children yet. Baby Boomers, by comparison, buy motor homes more as a life-altering option, one that will take up most of their time after retirement.

This wave of new buyers want recreation without investing greatly. They want to go camping on weekends, but not be so committed that it’s a lifestyle change.

That’s the reason a lot of newly wedded couples buy a trailer rather than a motor home. Travel trailers are easier to use than motor homes and they are two or three times less expensive. But despite this -most of them still want an RV that could endure weekend trips and hold their dogs, as well as an option that will hold up well over the next few years.

Even when consumers do turn to motor homes, they’re looking at the smaller ones; more and more customers are continually showing interest in the 21- to 24-foot models.

One additional factor in the latest growth trend is the fast-improving economy. RV sales have improved steadily since the 2008 financial crisis, when they took a nosedive to a 17-year low after peaking in 2006. At the moment, the association anticipates the overall retail worth of all RVs sold in 2017 would be $18.5 billion — and RV manufacturers say the rise in demand has made it hard to keep up.

A good number of RV plants are running at full capacity, taking up production incrementally; so as to meet demand.

For most first-time RV buyers, the target is more on the short term. Many even hope to make use of their new trailer to drive to barbecue competitions and delight in the outdoors around their neighborhood. This means that summer — along with the great freedom and pleasure that comes with it — is just an RV purchase away!

RV Trends: What’s Happening In the RV Industry

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RVing Is the New Hottest Trend

In this age of virtual reality and online shopping the old-school pastime of RV touring has continued to boom rapidly across the country. Sales of RV vehicles are increasing on a daily basis and the buyers are getting even younger by the day.

In the previous year, 430,000 recreational vehicles were sold, according to the RV Industry Association. And sales have been rising year after year following a one-year decline in 2009, resulting from the financial crisis.

Part of the reason for this booming trend in the sales of RV’S is the low gas prices and easy credit. But strangely enough, the overflow of new technology — smart phones, 4G data connections etc has also helped push the trend. Driving around the country for a couple of weeks at once has become considerably less challenging than ever before.

Another important reason for the rapid increase in the sales of the RV vehicles is that those who were raised with technology are now attaining RV-buying age; the RV Industry Association estimates that over fifty percent of RV buyers are under the age 45.

It is not uncommon now to see a couple under 40 towing a small Alto pop-up trailer.  A young couple shared an emotional experience of how their RV became ‘’a jewel on the campground” and how everyone wanted to see it. It was just the perfect RV for them, because it’s small and easy to tow with an indoor cook top, so they can make food when it’s raining and a hard metal sides to keep bears out.

Basecamp trailer has a standard glowing aluminum Airstream look and wrap with a cool retro-modern interior. Stating that Basecamp is a success is an understatement. Airstream’s original production plans were 10 a week but are now making 25 instead. The company also has a wholesale backlog out until the end of this year.

Trailers like the Basecamp are fairly cheap, with selling prices starting at under $40,000. Motorhomes, the luxurious condos of the road, are a completely different story. Their Prices can certainly get to six figures. That points to one bigger factor in the rise of the RV lifestyle, which is that loans are convenient to get. You can easily see terms as long as 20 years, therefore it is more similar to buying a home than it is purchasing a car.

Rising motorhome sales are a plus for automakers, too. Ford Motor Company for example, makes the chassis, engines and transmissions for the majority of the motorhomes sold in America. That business is actually booming, Ford says.

Kampgrounds of America, with its well-known KOA RV campgrounds, reports that business is the best it’s ever been in the company’s 57 years.

Currently the industry is working on exports. As of today, the largest percentage of RV’s exported from the United States never go farther than Canada. But industry representatives are trying hard to get China into camping & RVing.