Greg Gerber posted on March 20, 2009 05:39
COLLEGE PARK, Md. — Times are rough for the RV industry. Tightening credit and a lack of financing options are keeping new customers on the sidelines. Shattered consumer confidence is forcing many RV owners to cancel extended trips.
The downturn does mean that RV prices — which range from $10,000 to $400,000 — are "easily down 25 percent," says John Mancinelli of Redex RV, the largest dealer cooperative.
Campgrounds are offering incentives to get families to stay longer and urging budget-conscious travelers to try local spots. Mike Gast of Kampgrounds of America, which runs one of the largest U.S. campground networks, says its bookings are down about 6 percent this year and rates will remain flat for many locations in 2009.
But in a year when maintaining the current level of business is considered solid growth, industry officials are cautiously optimistic.
Like the rest of the industry, El Monte RV, a rental company in the Los Angeles area, relies heavily on bookings from in-bound Europeans, and their early reservation volume, though down slightly from a year ago, has been "relatively good," says Joe Laing, an El Monte executive.
"Our members are telling us their reservations are coming in pretty good. They were expecting a down year," says Linda Profaizer, president of the National Association of RV Parks and Campgrounds.
Still, it's too early to tell. A vast majority of customers book within 30 days of travel, and the busy summer season is still a few months away. "It's worrisome and we're seeing customers are waiting longer to make advance reservations," Gast says.
Time is also ripe for purchasers who can qualify for financing or are willing to bring larger down payments, says Steve Richardson, owner of Riverside, Calif.-based Richardson's RV Centers. Apart from deep discounts, some dealers are even offering a free moped or car as an incentive.
SOURCE: USA Today