RVRA Survey Shows Rental Market Booming
Most dealers who rent RVs reported a sharp uptick in rental revenue during 2013, according to a new survey of rental dealers conducted by the RV Rental Association (RVRA). More than half of respondents plan to increase the size of their rental fleet during 2014 to capture more of the growing market, RVRA reported in a press release.
“These survey results underscore what many of us in the rental space already know,” said RVRA Chairman Scott Krenek who owns Krenek RV Super Center in Coloma, Mich. “The RV rental market is vital and growing. That’s why so many RVRA members are looking forward to a great summer. Renting RVs is profitable and helps drive interest in the RV lifestyle.”
RVRA is a unit of the Recreation Vehicle Dealers Association (RVDA), and the survey was conducted through the RV Retailer Intelligence program, a service of the RV Assistance Corp., a wholly-owned subsidiary of RVDA. To create a snapshot of current market conditions and gain insight into the coming season, the survey asked rental operators to report on fleet size, revenue trends, rental contract length, fleet composition and future plans.
Most respondents said their revenue grew in 2013, with 75% of survey participants reporting rental revenues between 6% and 49% higher than in 2012. Nearly a third of respondents said last year’s rental revenue was 20% to 49% higher and a little more than one-quarter reported their rental revenue as 10% to 19% higher. Ten percent said their 2013 RV rental revenue was flat from the prior year and another ten percent reported a small downward trend in revenue.
Concerning the size of their rental fleet, 55% of the dealers responding said they plan to expand their fleet this year in order to capture more rental business. The most popular length of an RV rental contact was six to seven nights, according to those answering the survey.
In terms of the type of models rented, multi-location RV rental operators that don’t focus on sales primarily rent Class C motorhomes. However, a high percentage of dealers responding to the survey rent towable RVs. Three-quarters of those responding to the survey have some towables in their rental fleet and 20% of those responding rent towables exclusively.
The Recreation Vehicle Rental Association (RVRA) is a national association of companies that rent recreation vehicles to consumers. For more information about renting RVs go to www.rvra.org. The site provides information for dealers interested in entering the rental market and for consumers searching for rental operators and basic RV rental information.