Fuel Prices and the RV Industry

RV Travel

• More than three-fourths of RV owners said that even with higher fuel prices, their RV vacations cost less than other forms of vacation, according to surveys of RV owners conducted by RVIA and Zarca Interactive, a leading provider of online surveys and research technology.  In the most recent survey of RV owners (conducted in April 2008), 82 percent said RV vacations cost less than other forms of travel.
• RV owners still plan to travel in their RVs, but many are adjusting to higher fuel prices by traveling to destinations closer to home, driving fewer miles, and staying longer in one place, according to surveys of RV owners.  In the April 2008 survey, 58 percent said they’d travel to destinations closer to home, 35 percent said they’d travel fewer miles, and 34 percent said they’d stay longer at one destination.
• In times of high fuel prices, RVers typically spend more time enjoying the campground experience and less time on the road. More than 16,000 campgrounds nationwide give RVers the flexibility to save fuel and cut costs by staying closer to home. Whether they travel five miles or 500, they can still enjoy a great outdoor experience.
• Fuel prices would need to more than double from their current level to make RVing more expensive for a family of four than other forms of travel, according to PKF Consulting.   PKF’s spring 2008 vacation cost comparison study shows that RV trips remain the most affordable way for a family to travel because of the significant savings on air, hotel and restaurant costs, which continue to rise.
• Despite fluctuating fuel prices, RV travel is a great value.  The PKF Vacation Cost comparison study showed that a family of four can save 23-to-70% on vacation costs depending on the type of trip and type of RV used.  Even with higher fuel prices, more than three-fourths of RV owners say their RV vacations cost less than other forms of vacation.
• Fuel price hikes increase the cost of all modes of travel and transportation.  Airfares and hotel rates have risen rapidly as fuel costs increase and fuel surcharges are added.
• Many RV owners surveyed take additional measures to reduce fuel consumption through simple steps like driving 55 instead of 65 miles per hour, packing lighter to reduce weight in the RV, and turning off home utilities to save energy when traveling.  RVers travel at a leisurely pace with no tight schedules for flights, hotels or restaurants.
• Outdoor recreation and vacations offer physical and mental health benefits considered essential by experts, and are priorities for an increasing number of Americans.  RVs are a springboard to all types of recreation and travel opportunities.   Seventy percent of RV owners say they are more physically active on RV trips than on other vacations because they do more walking/hiking, swimming, biking, and kayaking/canoeing while on the road than they do at home.  Sixty percent say they eat healthier when they vacation in an RV than they do on other forms of vacation.

RV Sales

• Despite fuel prices, RV factory shipments in 2006 set an industry record.  The industry shipped 390,500 new units to dealers in 2006, a 1.6% increase from 2005.
• After five consecutive years of record growth, RV shipments declined 9.5 percent in 2007 due to the U.S. economic slowdown.   Shipments totaled 353,400 units – the fourth highest in the past quarter century.
• RV consumers have a widening array of product choices to improve their fuel efficiency, which should encourage continued growth.  Approximately three-fourths of the market consists of towable RVs, including many lightweight designs.  Manufacturers are introducing smaller, fuel-efficient motorhomes as well.
• Long-term demographics favor continued RV market growth as the baby boom generation reaches the prime RV-buying age, and more young families enter the market as a result of intense industry promotional activity including the “Go RVing” ad campaign.  The trend toward more active outdoor recreation and travel should also stimulate growth.
• RV industry forecaster Dr. Richard Curtin, director of consumer surveys at the University of Michigan, says growth rates in the RV marketplace are likely to continue accelerating.   He projects the number of RV owning households will rise to 8.5 million by 2010.

Updated 05-13-08