RV Sales Surge in Wake of COVID-19 Pandemic
Recreational vehicle sales have surged 170 percent in some parts of the country compared to the same period last year, according to the RV Industry Association.
Campgrounds, RV parks, RV dealerships, and even rental companies are all claiming to have seen a dramatic rise in interest in RVs and camping because they provide a safe way to travel while following social distancing guidelines.
“The minute the campgrounds opened on May 1 and the governor turned everyone loose, our business went through the roof,” said Mike Regan, owner of two RV dealerships in Texas. Regan reported a floor traffic increase of 30 percent compared with last May.
According to Regan, most of his customers fall into three groups: the usual spring customers looking for a summer camper, those who couldn’t come during the shutdown, and those considering an RV for the first time because of COVID-19.
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Regan believes those in the third group are responsible for the increased floor traffic, and other manufacturers corroborate his intuition. Thor CEO Bob Martin says the company’s dealers are reporting many of its customers are first-time buyers browsing entry-level and mid-range vehicles.
“Every dealer that I talk to is just blown away by the reaction of people that have never even thought about an RV,” Martin said. “A lot of people are really going to look more at this lifestyle.”
Meanwhile, Thor Industries Inc. and Winnebago Industries stock has been steadily improving, while Camping World stock is at a two-year high. In fact, Camping World says its first-quarter sales beat analyst projections.
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That being said, it’s probably too soon to tell how RV sales will shape up in the future. After peaking in 2017 at 504,000, they have since declined very slightly. Richard Curtin, a University of Michigan professor who prepares an annual RV industry forecast, initially estimated 2020 RV sales to follow that plateauing trend.
Instead, deliveries were up before the shutdown, then dropped 20 percent in March as everyone began staying at home. Now sales are up again and higher than expected, but Curtin says it’s too soon to know whether that momentum will carry through to the end of the year.
In any case, one thing is clear: Americans want to travel, and RVs provide one of the best ways to do so while maintaining social distance.
Kurt Verlin was born in France and lives in the United States. Throughout his life he was always told French was the language of romance, but it was English he fell in love with. He likes cats, music, cars, 30 Rock, Formula 1, and pretending to be a race car driver in simulators; but most of all, he just likes to write about it all. See more articles by Kurt.