The Pennsylvania Recreation Vehicle and Camping Show drew a record 31,710 visitors Sept. 16-20 at Hersheypark in Hershey, Pa., an increase of 14% over last year.
And by all accounts, manufacturers exhibiting at the East Coast’s biggest annual trade and retail show were pleased with the outcome.
“Traffic was real good,” said Tim Tiffin, general manager of Tiffin Motor Homes, Red Bay, Ala. “It was a good bit over what we had last year. We were very pleased. It concreted our assertion that business has been getting better over the last few months.”
Although space of 440,787 square feet sold before the show was a little more than half of what it was last year, 59 manufacturers represented by 47 dealers displayed about 700 units while 117 suppliers occupied indoor and outdoor booths.
“We weren’t off on the number of manufacturers, but many of them downsized their display a lot,” said Heather Leach, director of education and marketing for the sponsoring Pennsylvania RV and Camping Association (PRVCA). “But people were there to buy. From the dealers and manufacturers that we talked to, they all had an excellent show. Some told us it was the best show they had had in years.”
“It was a fabulous show,” said show Chairman Dan Saltzgiver, owner of Reichart’s Camping Center, Hanover, Pa., who sold all 17 Forest River Rockwood travel trailers Reichart’s brought to Hershey. “Hopefully it’s an indication that the economy and industry is turning around.”
The Chicago area-based Camping World dealership network sold almost 400 units at its nine dealership display in Hershey, said Marcus Lemonis, chairman and CEO.
“We sold 393 units for the show,” Lemonis said. “The bulk, more than 150, were Keystone (towables). What was most surprising, though, was the number of motorized we did. We did 68, most of them Class A’s.”
“Their displays did very well for us,” said Bob Martin, Keystone RV Co. executive vice president. “We don’t have our tallies in yet, but it looks like we sold more than we did last year.
“It was a sale environment and customers were definitely in a buying mode, which bodes well for the fall buying season and for next spring. The Hershey show always is an indicator. We definitely see this as a positive for our company and the industry.”
While declining to provide specific sales numbers, Roger Martin, Winnebago Industries Inc. vice president of sales and marketing, said that show sales were up 30% compared to last year.
“Traffic was excellent,” Martin said. “We had a very nice mix of products retailed — from Class C’s to Class A gas to Class A diesel. Consumer interest in our new Winnebago Via and Itasca Reyo was stellar — with lines waiting to get inside the units.”
Brian Wilkins, general manager of Wilkins RV in Bath, N.Y., said he was busy Monday sorting out orders. “There seemed to be for everybody very brisk business activity,” Wilkins said, noting that most of consumer’s interest was in fifth-wheels retailing from $30,000 to $70,000.
Recreational park trailer sales apparently also did well. “There were some happy looking manufactures that I talked to who said that things were moving,” said Bill Garpow, president of the Recreational Park Trailer Industry Association (RPTIA).
PRVCA’s Leach attributed part of the attendance boost to increased national magazine advertising and radio and TV promotions that reached into New York and Ohio. The weather also cooperated for a change.
Editor’s Note: The following is an editorial that appeared in the Press of Atlantic City, N.J.
Bill Garpow, executive director of the Recreational Park Trailer Industry Association (RPTIA), (yes, there’s a national association for everything) wants to be perfectly clear:
He agrees that so-called “park model” campers, which are 400 square feet at their largest, are not designed to be year-round homes. And, in fact, New Jersey law clearly states that campgrounds cannot be full-time legal domiciles, says Garpow.
However, the current attempt by the state of New Jersey to allow people to use their park-model campers only six months of the year is arbitrary and foolish, says the head of the national association, which is based in Newnan, Ga. And he’s right. Why shouldn’t someone be able to enjoy their camper for a weekend in, say, late fall if they want to?
Furthermore, New Jersey is the only state in the nation to claim that the National Electric Code requires it to force campgrounds to close six months of the year because of the wiring in park-model campers. New Jersey, says Garpow, is “interpreting (the code) uniquely.”
There’s a surprise, huh?
Last year, the state Department of Community Affairs began imposing a six-month limit on how long campgrounds can be open; the six-month period starts on opening day of a particular campground.
The state says this is necessary because under the National Electric Code, the wiring in park models is not sufficient. Nonsense, say Garpow and others. They say the wiring, at least in newer models, is the same as in a single-family house.
So … what is the state up to?
Garpow says he isn’t sure. At best, the state is using a backhanded approach to ensure that campgrounds don’t become full-time, year-round residences for people — particularly, we suspect, for people who might send children to the local schools.
But the issue here is whether people who own park models should have access to them for weekend getaways or vacations whenever they want — or only when the state of New Jersey says they can.
The New Jersey Campground Owners Association, which is based in Middle Township, is fighting the new rules. A spokesman for the state Department of Community Affairs says it is willing to work with the association to come up with a reasonable solution.
May we suggest that the first step should be for the state to be honest about what it is hoping to accomplish and why?
If the issue is really campgrounds that morph into full-time residences more like trailer parks — and then, presumably, “overload” local services and schools without paying a “fair” share of taxes — then talk about that, rather than rely on some arbitrary and unique interpretation of the National Electric Code.
Like other RV manufacturers, recreational park trailer builders have been hard hit by the recession, with unit shipments being roughly half of what they were in 2006, when a record number of 10,100 shipments were recorded.
“I think the market is starting to improve. We’ve seen some movement in the marketplace. And a few manufactures even report having a small backlog, which is something that we haven’t experienced in the past year,” Bill Garpow, executive director of the Recreational Park Trailer Industry Association (RPTIA) in Newnan, Ga., told RV Business.
But manufacturers remain cautious about the economy, and generally don’t see the recreational park trailer or “park model” industry to rebound until the nation’s banks are in better financial shape.
“As I talk to my contemporaries, I’m hearing the same from everyone, that it’s really tough out there. And what business is out there is really tough to get,” said Tim Howard, president and CEO of the Breckenridge Division of Damon Corp., a Thor Industries Inc. company in Nappanee, Ind.
Like most manufacturers, Breckenridge has had to dramatically scale back its work force to remain viable during the current economic downturn. “We’re in very good shape,” Howard said. “Our balance sheet continues to be very strong. We have virtually no debt.”
But as a manufacturer, he said, it has been “heartbreaking” to have to let staff go because of the economic downturn. “You have an emotional bond to quality people and an investment in quality people,” Howard said, adding that Breckenridge has just over half as many employees as it did a few years ago, when the park model industry was experiencing record sales.
But even though all segments of the RV industry have been particularly hard hit by the current recession, Howard and other park model manufacturers and industry officials believe the park model industry still has a long ways to go to reach its full potential.
“I’ve always said this market is in its infancy, and I still do, especially given the trend from a transient to permanent camper,” said John Soard, a longtime park model industry executive who spent 20 years with Breckenridge and Middlebury, Ind.-based Woodland Park before becoming general manager of Nappanee, Ind.-based Fairmont Park Trailers in 2005.
Indeed, Soard and other park model manufacturers believe consumer interest in “destination camping” will continue to increase, and as it does so will demand for park models.
Soard, in fact, noted that many of the leading RV manufacturers are now building towable trailers up to the 400-square foot limit precisely because they believe consumer interest in destination camping is growing. “Each one of these major RV manufacturers has a destination travel trailer that’s intended to be parked, not towed,” Soard said.
Garpow, for his part, noted that park models remain one of the most profitable investments campground owners can make, a point that was underscored by Atkinson of KOA. Park model rentals typically generate two or three times as much revenue as a typical RV site, plus they stay rented for longer periods of time throughout the year. “Park models not only generate more revenue, but they do it for longer periods of time than a typical RV site,” Garpow said, adding that campground owners often generate enough income from their park models to pay them off in three years or less.
Garpow also noted that the Obama administration’s efforts to increase CAFÉ standards could further increase demand for park models. “One way to increase fuel economy is to produce lighter vehicles as well as vehicles with smaller engines, the net effect of which is to reduce the vehicle’s towing capacity. But as towing capacities are reduced, it’s going to be harder for consumers to find vehicles that can tow the biggest trailers, and that could lead to increased demand for park models or for destination camping.”
As a result, he said, many consumers may find it easier to purchase park models that are professional installed on permanent campsites than large travel trailers or fifth wheels that require a tow vehicle. This is precisely what happened when CAFÉ standards were increased in the late 1970s and 80s. In fact, the resulting reduction in vehicle towing capacities helped foster the birth of the park model industry.
Garpow also noted that many of the nation’s campgrounds have yet to open their doors to park models, either for rentals or sales, and that represents a significant growth opportunity for park model manufacturers.
Many campground operators say they are pleased with the return of investment on park models, including Jeff Gordon of Raintree RV Park in Rockport, Texas, which sits along the Gulf Coast roughly 30 miles northeast of Corpus Christi. In addition to 80 RV sites, Gordon also offers one cabin, two fifth wheels and four park models for rent.
“We’re actually going to phase out the fifth wheels and just go with park models,” Gordon said, adding, “All of our requests are for park models. They’re nicer accommodations, and that’s what people want in this area.”
Coincidentally, Gordon had to interrupt his interview with RV Business to answer questions from a woman who called on another line to reserve one of his park models. He said he’s also had some people change their vacation plans to coincide with days when he has park models available.
Such is the demand for park model accommodations, which is why campgrounds and RV parks continue to invest in these units, even during the current recession.
“Roughly 25-30% of the nation’s private campgrounds offer park models as rental units, and the numbers are growing,” said Garpow of RPTIA.
Mike Atkinson, facilities development manager for Billings, Mont.-based Kampgrounds of America Inc. (KOA), said his company’s park models, which it markets as Kamping Lodges, have the highest occupancy rate of any category of rental accommodation in the KOA system. He said KOA parks had taken deliver of 163 park models as of early June.
KOA, like other campgrounds, furnishes its park models with beds, linens and kitchen utensils. “Our numbers show that the customers who are coming to our campgrounds want lodging that has amenities,” Atkinson said. “They want a bathroom. They want a comfortable bed. And they don’t want to pack their car with everything. They don’t want the labor.”
Park operators often invest in park models so that they can have rental units available for people who don’t have their own RV. Many park operators also take it a step further and form their own park model dealerships. This way, they can potentially make a profit on the sale of the park model in addition to generating ongoing revenue from the campsites they lease to park model owners.
Some parks also set up rental pools using the park models they have sold at their parks. This way, the owners can make money on their park models when they’re not using them.
While park models have long been a rental option of choice for Winter Texans, Gordon of Raintree RV Park said boating enthusiasts also like to rent them as well. “We’re on the coast, so we get a lot of people from San Antonio, Austin and Houston and the surrounding areas,” Gordon said. “But if they’re pulling their own boat down, they can’t pull a camper, too.”
Park models are also ideally suited for campgrounds in popular tourist destinations that want to broaden their business base to compete with hotels and motels.
Crater Lake RV Resort in Fort Klamath, Ore., purchased three park models in 2006 and installed a fourth one this year. “They are our most requested cabin,” said resort owner Babe Hamilton, whose park also features 14 RV sites. “They’re just a nice looking cabin with the wood siding. They all have their own gas barbecue on the deck, and they’re right on the creek. It’s a very nice setting.”
Some private park owners are also finding that park models can be used for more than guest accommodations.
At the River’s Edge at Deer Park in Heber, Utah, which is close to the Deer Valley and Park City ski resorts, Cavco park models are being used not only as guest accommodations, but as seasonal employee housing for during the winter months, said resort owner John Kenworthy.
“We’re continuing to expand the lodging part of our business,” Kenworthy said, adding that his park models remain are in high demand.
Garpow and Linda Profaizer, president and CEO of the National Association of RV Parks and Campgrounds (ARVC), are scheduled to discuss the merits of investing in park models on Sept. 15 during the 41st annual Pennsylvania RV and Campground Show in Hershey, Pa. The show features the largest park model expo in the country.
The executive committee of the Recreational Park Trailer Industry Association (RPTIA) will meet twice within the next two weeks to discuss an alliance the trade group is seeking to form with the Recreation Vehicle Industry Association (RVIA).
”We are at this point still trying to work out issues that we have concerning both parties,” said RPTIA Executive Director William R. Garpow, who said RPTIA leaders will meet by phone next Tuesday and in person April 20 in Elkhart, Ind.
”The fact that we are talking is a good thing,” Garpow said.
A joint meeting between representative of the two associations is scheduled for April 29 in Chicago to discuss the relationship of the two associations going forward.
At the core of the discussions are the square-footage standards for travel trailers and fifth-wheels that RVIA allows its members to build.
At a March 27 meeting, the RVIA board voted to authorize fifth-wheel manufacturers to immediately build units with a maximum 430 square feet in the setup mode — up from 400 square feet — and, in a compromise with RPTIA, to consider reducing travel trailer limits from 400 square feet to 320 square feet, the standard before Jan. 1, 2008.
Prior to that date, travel trailers over 320 square feet were considered recreational park trailers.
”We are pleased that they decided to put a cap on fifth-wheel square footage,” Garpow said. ”That was something that we were a little surprised about — positively. That’s a step in the right direction.”
During the March 27 meeting, RVIA’s board also appointed an ad hoc committee to discuss RPTIA rejoining RVIA 16 years after park model manufacturers left RVIA — at RVIA’s request — and set up their own association. In the meantime, the two associations are expected to establish an informal two-year alliance that also appears to have a lot to do with the tough economic times and the need for these once disparate elements to pull together.
The maximum size of towable RVs has been a point of contention between the two associations for nearly two years. RPTIA claims standards authority over travel trailers exceeding 320 square feet, considering them to be recreational park trailers. The Newnan, Ga.-based trade group also objected to earlier RVIA efforts to increase fifth-wheel square footage in an era where larger units are gaining popularity.
The Pennsylvania Recreational Vehicle and Campground Association (PRVCA) will hold a drawing May 5 for manufacturers, suppliers and seminar sponsors planning to attend the 41st Annual RV and Camping Show Sept. 14-20 in Hershey, Pa.
“We are probably going to be down a little as far as manufacturers are concerned, but so far, we’ve only had one company say that they weren’t going to be here,” said Heather Leach, PRVCA director of education and marketing.
“The main thing is that we are trying to remain optimistic and we are hearing from our dealers lately that things are picking up. We are taking that as a good sign.”
Last year about 60 dealers displayed product from 74 manufacturers, while retail attendance was 27,838 – down 11.6% from 2007.
Sept. 14-15 have been set aside as trade-only days,
In deference to the soft RV market, just as it did last year, PRVCA will allow manufacturers to display 20% of units from the 2009 model year. However, with that option available last year, fewer than 5% of RVs on display were 2008 units.
“It’s hard to say how many people will take advantage of that option this year, but they seem to like to have it,” Leach said.
Entertainer Bowzer from the ’70s acapella group Sha Na Na will perform Sept. 14 for trade members with Bowzer’s Rock & Roll Party.
Sales trainer Randy Sobel will be featured speaker during an opening breakfast Sept. 14 for trade members and retired Notre Dame and Pittsburgh Steeler running back Jerome Bettis will speak on “Choices that Make Champions” during breakfast Sept. 15.
Other trade seminar subjects will include distance learning for technicians by Gary Bunzer and park trailers in campgrounds by Bill Garpow, executive director of the Recreational Park Trailer Industry Association (RPTIA).