The industry will benefit from continued rising consumer confidence and disposable income.
Los Angeles, CA (PRWEB) July 31, 2013
The RV and Camper Van Rental industry struggled during the past five years, with revenue declining at an annualized rate of 4.4% to $350.0 million. Revenue is expected to decline 0.8% in 2013 alone. Road tripping in a recreational vehicle (RV) is a leisure travel activity, so this industry relies on disposable income and consumer confidence. Both of these factors declined in 2009 and industry revenue suffered as a result, declining 16.5% in that year. Revenue declined further in 2010 and 2011. While industry revenue grew in 2012 thanks to renewed consumer confidence, it is expected to fall again in 2013. "This is because of volatile gas prices deterring customers from this mode of travel," according to IBISWorld Industry analyst Natalie Everett. Many of those who still chose rental RVs for their road trips downgraded to smaller, less expensive models or took shorter trips in order to afford an RV vacation with declining disposable income.
One bright spot, which has kept revenue from declining further and will assist in the industry's comeback over the five years to 2018, is the rise of the retired baby boomer. Baby boomers, defined as the population demographic born from 1946 to 1964, have proven fond of recreational road trips via RV or camper van. Further, due to a strong contingent of this age demographic having higher disposable income, the rental of luxury RVs with advanced features, such as central air conditioning and heating, will increase. "During the next five years, revenue will rebound," says Everett. The industry will benefit from continued rising consumer confidence and disposable income. Further, the baby boomer generation is expected to show strong demand for rental RVs. One effect of renewed demand for rental RVs and camper vans will be an increase in rising employment in this industry.
The RV and Camper Van Rental industry exhibits a low level of market share concentration. Although unfavorable economic conditions at the start of the past five-year period incited the industry's recent poor performance, market share concentration remained largely unchanged. The industry's two largest players, Cruise America and El Monte RV, have extensive rental networks that span the country and are often able to offer more competitive pricing due to their economies of scale.
For more information, visit IBISWorld’s RV and Camper Van Rental in the US industry report page.
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IBISWorld industry Report Key Topics
This industry rents or leases recreational vehicles (RVs) and camper vans. Consigning recreational vehicles on behalf of private owners is included in this industry. Retailing RVs and lease-to-own and time-sharing arrangements are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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