Surveys show most buyers are first-time RV buyers
Call it the turtle solution to travel envy in the COVID-19 era.
Eager to travel – but wary of hotels, planes and restaurants – more and more Americans are taking their homes with them wherever they go, reviving an RV business that had been devastated by closures earlier this year.
Wholesale RV shipments posted their highest monthly total in June since October 2018, according to the RV Industry Association, the industry’s leading trade group, marking a sharp turnaround after months of deeply depressed activity. In data provided to Reuters, the group counted 40,462 units shipped last month, an increase of 10.8% from a year ago.
In contrast, shipments in April were down more than 82% from a year ago and nearly 30% in May.
“We didn’t think this turn would be as strong as it has been,” said Craig Kirby, group chairman. “People don’t want to fly, they don’t want to stay in a hotel. In an RV, you can cook your own meals and sleep in your own bed.”
Kirby said his group expects more people to start using RVs as mobile offices as well. Some manufacturers are developing RVs “with dedicated workspaces that provide space for desks and other systems when the job is done,” he said.
One indication that the recovery is a response to the pandemic is the large number of first-time buyers, Kirby said. Surveys of RV dealers indicate that most buyers, between 50% and 80%, depending on location, are first-time buyers. A year ago, this share varied between 25% and 35%. Recreational vehicles are also attracting more young buyers.
While shipments are heavy, the RV mix is heavier on towable and smaller RV models, rather than the often much more expensive large RVs. Towable RV shipments increased nearly 13% last month.
Major industry players have also signaled the turnaround.
“We have seen an incredible rebound in retail demand and dealer demand since early May across all of our businesses,” Winnebago Industries Inc General manager Michael Happe said on a conference call last month.
Investors have also joined the trend. Shares of Winnebago are up nearly 11% this year compared to a 2.4% drop for the S&P 500. Shares of rival Thor Industries are doing even better, gaining 38% this year.
(Except for the title, this story was not edited by GalacticGaming staff and is posted from a syndicated feed.)
