As temperatures rise, the summer season is kicking in, bringing with it National Go RVing Day on June 10. So let’s check out at what’s going on in the RV industry this year and see what your bank or credit union should keep in mind to gain a competitive advantage.
Keep an Eye on Leisure Travel Demand
If 2022 was a hot year for leisure travel demand, then 2023 has the potential to be boiling for RV dealers and lenders that learn how to win the traveler market. Here’s why:
- 74% of 2022 campers plan to camp again in the future.
- 72% of parents are planning more trips this year than last, with 45% more interested than other adults in traveling by RV.
- 64% of couples without kids are more interested in traveling long distances in an RV.
- Nearly 39% of Americans plan to travel more than 250 miles this summer.
This data paints a potentially lucrative area for RV dealers and lenders to tap into. With more travelers planning to travel by RV, both dealers and lenders should jump on this opportunity to appeal to target families and campers looking to hit the road this summer.
Don’t Stress About Shrinking RV Shipments
The hard truth is, RV shipments have gone down since the industry’s all-time high in 2021 and the first half of 2022. Overall, RV shipments in 2023 are expected to shrink by 21% due to rising interest rates, recession, and record-high shipments in previous years.
The total RV shipments dropped by 54.3%, or 78,600 units, shipped January to March compared to the same time last year. Interestingly, retail registrations in the same time frame this year were higher than shipments seeing only a 25.7% decline, or 82,201 registrations, compared to 2022.
Retail sales outpacing shipments implies that dealerships are likely selling their excess inventory rather than ordering new units. Plus, while national shipments may be slowing down, many local dealers are seeing an increase in sales this year like Raleigh, North Carolina, and Colorado Springs, Colorado.
Expect Future Growth in the RV Industry
The good news is, even though the RV industry is having a slump in 2023, its overall trajectory is still positive. In fact:
- The market value is predicted to reach $59.16 billion by 2027 in North America.
- RV ownership has increased over 62% in the last 20 years.
- 6 million households intend to buy an RV within the next five years.
- The median age of first-time RV buyers has dropped from 33 to 32.
- 56% of RVers say they’ll use their RV the same amount or more during an economic downturn.
Even though economic factors have impacted this year’s shipments and sales predictions, consumers are still strongly interested in owning RVs.
Get Your Lending Process Ready to Meet Demand
So what do these trends mean for your bank or credit union? The RV industry has already proven to be a strong and profitable market for lenders who know how to capitalize on its unique qualities. If you want to take advantage of any rise in summer sales and continue growing upwards, you’ll need to position yourself competitively against other lenders in your area.
Get the competitive advantage by using a workflow solution like AppOne’s web-based platform, which gives you access to an established network of dealerships in your area. This tool can help streamline your financial institution’s consumer lending process so you can have a profitable summer season.