The Latest Trend in Travel: RVs

Imagine taking a long family vacation with your TV, refrigerator, Play Station and washing machine. Sound impossible? 7.2 million Americans manage to do just that traveling our country in their RVs (recreation vehicles). The advantages to traveling in an RV have only become more numerous as they’ve become more plush, filled with the most modern conveniences of home and as air travel has increasingly become tedious and stressful.

RVs are now filled with electronics, entertainment systems, full kitchens, and sleeping areas. Traveling with all of these amenities is especially attractive to families, needing the flexibility of a "home-on-wheels" environment. The increased sales of RVs in 2004 reflect this trend. In 2004, a new record was set for RV shipments totaling 364,900, a 14% increase over 2003 shipments.

Not only does the economic outlook look favorable for RV manufacturers and sellers, but RV parks and campgrounds also benefit their local economies. According to Michigan State University’s 2005 study of the July 4th weekend, campers/RVers staying in commercial campgrounds will spend $245 million nationwide in their local communities. This figure averages out to $91 per camping party spent locally during these two days, not including fees to the RV park or campground.

If you’re feeling cautious about investing in the purchase of a new RV, try renting. You’ll be able to try out different models as well as get to experience the RV lifestyle.

Sources:

The joys of RVing: recreation vehicles open up new horizons

Travel America , May-June, 2005  
Why Stay at Home This Memorial Day? Head for the Park; There's Still Time to Reserve a Place in America's RV Parks and Campgrounds PR Newswire ,   May 26, 2005

National Campground Survey Predicts Busy July Fourth Holiday, National Association of RV Parks, June 28, 2005

- Carolyn Ellis

Industry Snapshot: RV Parks

Across the country, many areas of the tourism industry such as hotels and amusement parks are struggling to stay afloat. But… the RV park segment is an exception -- it is on the gradual increase year after year. After the events of 9/11, consumers became weary of flight travel and thus turned to the good old-fashioned RV.

Take a look at our full industry report on RV Parks(PDF Format). If you are interested in other industry snapshots, visit our SBDC Business Advisors' Toolkit

Links of Interest

Recreation Vehicle Industry Association
Recreation Vehicle Dealers Association
The National Association of RV Parks and Campgrounds

Did You Know?

The Daily Commute and Worker Household Analysis

Do you think about where you live according to your workplace? The Census Bureau is in the process of creating a useful mapping application to provide municipalities, employers and residents with origin-destination flows of traffic. A researcher can select either the “commute shed” for the daily movement of workers or the “labor shed” showing where the workers live.

Minnesota state data from 2002-2003 will be translated into a mapped design before 12 other partner states are added. Take a look at a list of the states and the prototype.

Move your mouse over the county map to see the various shades of red indicating density. The future version will allow for zooming in or out, viewing the neighborhood level to the larger metropolitan area.


- Judy Johnson

Are You Paying Attention to
Demographic Trends?

According to the latest consumer expenditure reports, from AGS, for average household annual expenditures, the top ten items in the nation are (in percentage of total, with their corresponding 2004 estimate [$]):

Industry Category	Percentage	Expenditures
Transportation	20.90%	$10,072.37
Shelter	17.80%	$8,617.11
Food & Beverages	16.40%	$7,911.40
Food At Home	9.70%	$4,700.48
Rental Costs	7.50%	$3.632.70
Health Care	6.40%	$3,099.90
Mortgage Interest	5.80%	$2,820.66
Food away from Home	5.70%	$2,750.71
Apparel	5.40%	$2,619.15
Entertainment	5.20%	$2,490.04

However, it is projected (in percentage change from 2004 to 2009) that the following three items will have a 7.50% or higher increase in consumption/sales:

Category	Percentage
Computer Information Services	7.90%
Household Supplies	7.60%
Watches	7.50%

The “Records/Tapes/CD Purchases” category shows the least percentage change in the same time period (i.e. 2004 to 2009): 0.00%. The current 2004 estimate expenditure of the total is of 0.3%.

- J. Eric Lomeli

 

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