Rentals of recreational vehicles could signal industry rebound

by Troy Kehoe (tkehoe@wsbt.com)

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Local dealers say RV rentals are higher this year as people look for cheaper ways to travel. (WSBT photo)

ELKHART COUNTY — A new national study shows some encouraging news for the struggling Recreational Vehicle industry. An increasing number of Americans are now turning to RVs to save money on their summer trips. Is that a sign that new industry growth lies ahead?

That study comes from the Recreational Vehicle Industry Association (RVIA) and it forecasts an encouraging summer travel season ahead for RV dealers and manufacturers.

Earlier this year, the RVIA's "Go RVing" advertising campaign was re-worked to center on the new theme "Go affordably. Go RVing." Ads now include catch phrases like "withdraw from civilization, not your savings account" and "collect memories instead of baggage fees and hotel bills."

The ads followed a study commissioned late last year by RVIA through PKF Consulting that found a vacation for a family of four in an RV was 27%-61% less expensive than a more "traditional" vacation involving airfare and a hotel stay.

Experts also say you don't have to own an RV to get in on the savings.

Matt Oxender is proof of it.

Standing outside the RV he rented Thursday for a family Memorial Day weekend trip from his home in Shipshewana to Ohio, he was all smiles.

The RV fit the bill perfectly, he said.

"You have all the luxuries of home right there. It has a nice full size refrigerator, so you don't need to run to town for dinner or anything. There's plenty of space for the kids. And you're right there with all the action. You don't have to go to a hotel room and drive back and forth," he said.

It all comes for about $800 for the long four-day weekend.

It's not cheap, but it's better than the alternative, Oxender said.

"By the time you figure out renting hotel rooms each night, this comes out to be about the same. And it's a convenience. It's all about the convenience," he said.

And it's a convenience that's suddenly skyrocketing in popularity.

Just ask Rick Slusher.

As the head representative for Cruise America RV Rentals at Techworks in Elkhart, he's seen the down economy's effects on sales recently.

He's also seen a sudden upswing.

"We have nothing available. Nothing on the lot," Slusher said. "All of our RVs are rented for the holiday weekend."

It's a far cry from just two years ago, when sales were sluggish.

"We were down to maybe one or two calls a day [for RV rentals]. Now, we're up to maybe a dozen every day," he said.

Sales are up, too.

"We're up 13% from last year. And, last year, we were up 100% at this time. So, we are up 13% over that hundred as of last year," Slusher said.

He thinks there's a simple reason why.

"I think it's a money thing right now. People want to save money. People don't have a lot of money like they used to [for vacations.] So, they're going the cheapest and best way they can go," Slusher said.

It's quickly becoming a national trend.

Across the country, rentals and sales of RVs are on the rise over the last few weeks.

Experts say it's another encouraging sign for the hard hit RV industry.

"There's certainly something afoot," said RV Industry e-News Editor Greg Gerber, an industry analyst based in Madison, WI. "There's a lot of interest in RV-ing and a lot more traffic coming onto the dealer lots. A lot more sales are being made."

Still, Gerber cautions that doesn't mean the industry is suddenly "back to normal."

"We're starting to see signs of improvement right now, and there's nothing to indicate that it will not continue through the rest of 2009. But, it's probably going to take a year or two for us to fully recover," he said.

Even so, Gerber thinks some consumers are being driven toward RV's, because of the tough economy.

"People still want to take vacations, even if times are tough. And RV travel has always been very economical. It always has been, and always will be. Add in the freedom, the ability to go wherever you want on a moment's notice, and that just adds to the appeal the RV has. That will never die," Gerber said.

Recovery is on the Oxender's minds, too, just a different kind!

"The kids can play, rest, and relax in there if it gets too hot outside," Oxender said.

After all, the most valuable part of the whole deal is time spent together as a family. It's so valuable, that Oxender says he's considering buying an RV of his own.

It's one reason why some industry analysts are revising their forecasts for the coming year.

"I think many manufacturers are preparing for a big rebound in 2010, focusing on more fuel efficient and lighter vehicles," Gerber said. "I think right now, there's a bright light at the end of the tunnel ahead."

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