Ever since the financial crisis in 2009, RV sales across North America have been steadily growing.
In 2018, RV sales were at an all time high. Take Winnebago’s 1st quarterly report for 2018 for example. The report shows that revenue for the first quarter of the 2018 fiscal period is way ahead compared to the same period in 2017!
Thor Industries, one of the world’s largest RV manufacturer conglomerates, provided similar trends in their 2018 2nd quarter fiscal media release. “In what has historically been our lowest volume quarter, we achieved our third highest sales level of any quarter in the Company’s history” reported their President and CEO Bob Martin.
Hint: Baby Boomers Provide The RV Boost
One of the key reasons the RV industry is booming, is the RV consumer demographic profile. It is closely linked to the fact that the majority of the Baby Boomer generation have hit retirement age. The boom is caused by the Boomers!
After a lifetime of hard work to raise families, fight wars and build their own empires, Baby Boomers are ready to take life by the reigns, and escape the fast paced modern world we have all been swept up into. There is no better way to do that, than by commandeering an RV across North America.
The world, it seems, is catching onto the benefits of the RV lifestyle. And the Baby Boomers are leading the charge!
There is a few reasons Baby Boomers love the RV life.
To begin, RV travel is affordable. A survey of RV owners undertaken by the Recreation Vehicle Industry Association in 2015 found that three quarters of surveyed RVers saved at least 25% on holiday costs, when they travel by RV.
On top of the affordability, it is invigorating, and perhaps the easiest way to discover and relax in new places.
As the influential writer D.H.Lawrence once wrote, “The great home of the soul is the open road”.
While more Millennials are also entering the RV market than ever before, the Boomers are continuing to dominate it. Younger generations, keen as they are to explore and discover, are bound by the traditional travel cycle:
"Work, Travel, Save, Repeat"
But the Baby Boomers have no strings attached! Family is always available at the press of a button, so parents can still be connected with their children and grandchildren at a whim, where ever they are.
Today's relatively low gas prices and easy credit has made investing in an RV even more affordable. And the explosion of new technology like smart devices, navigation systems and wireless high speed internet has made travel easy and stress free. As a result, droves of Baby Boomers are adopting the RV lifestyle, year upon year.
Ultimately, all these factors have made extended travel across North America much more accessible, and much less daunting. The franchise Kampgrounds of America (KOA), who have a huge number of campgrounds around Canada and the USA confirm this, reporting RV business is the highest seen for almost 60 years!
More people are frequenting their facilities than ever before, and the reason is clear.
"Many Baby Boomers now see an RV more like investing in a second home, rather than just a vehicle"
Winnebago CEO Michael Happe explains that it is now common for people to seek repayment terms as long as 20 years for a new, modern mobile home, reinforcing the mindset that an RV is a legitimate long term investment.
Investing in an RV is further supported by a relatively recent twist in the evolution of the RV economy: RV sharing!
The explosion of the RV sharing economy has provided opportunities for RV owners to subsidize RV costs. While an RV isn’t being used by its owners, intuitive RV Sharing platforms like RVezy facilitate rental for the owner, and deal with the administrative burden that comes with it.
The owner has very little to worry about. They can take comfort in the fact that when they are not using their RV, it is earning them money, and helping to pay off its purchase price and ongoing costs.
It is a best of both worlds solution, and very handy for Baby Boomers who have retired and no longer have a regular stream of income.
Baby Boomers now have a very unique, and relatively new opportunity. An RV which pays for itself. And they aren't wasting their time jumping on the wagon!
For more information, sign up to RVezy for free and discover what the RV sharing community is all about!