A Year in Review: A Look Back at the RV Industry and What We Learned

Well, Happy New Year to you all!  Today, 2023 is just a fading memory.  So, are you excited about all the possibilities of a new year or are you worried about it? For some people, it’s a melancholy transition and for others it’s just the beginning of another exciting new adventure. This is especially true in the RVing community.  So, let’s look back at the RV industry to assess how we got here, then sneak a peek forward to see where we’re going in 2024.

The Pandemic Changed Everything

The past few years have been like none other due to the life altering impact of a worldwide pandemic that swept across our country and the world between 2019 and 2021.  A short review of some of the facts related to the pandemic will help us better understand how we got to where we are today and what we can expect for 2024. Yes, I’ll be brief because for most of us it’s still fresh in our memories, but the pandemic did have a significant impact on where we are today in the RV industry and that’s worth a little more introspection.

Forced Isolation Prompted Huge Spike in RV Sales

As you, no doubt recall, when the pandemic first started to rapidly spread across the country, people were instructed to stay at home. People were generally restricted from travel as well as most other forms of recreation. Concerts and sporting events were canceled. Movie theaters were closed. Bars closed early or were shuttered completely. People were cautioned to avoid shopping, dining out, and even going to church. Suddenly, as a response to all this forced isolation, interest in RVing skyrocketed.

RV dealers across the country were inundated with eager buyers who saw RVing as a viable recreational alternative where they could recreate without being in crowds and without putting their health in jeopardy. Dealers everywhere quickly began to run out of inventory as they struggled to fill orders for both used and new RVs.  In addition to unprecedented sales levels, dealerships were also struggling to maintain inventory, because the RV supply chain and labor force were curtailed by the pandemic. All types of new and used RV inventory quickly disappeared from sales lots and back orders began to pile up. 

Many Social Changes Impacted the RV Industry

In addition to the heightened perspective that people could still recreate and travel safely in an RV there were other impactful social changes during the pandemic that further elevated the new interest in RVing.  The sudden need to adapt to remote work requirements and the new pandemic education policies that closed schools and required children and educators to adapt to online learning protocols quickly reshaped family time and family routines. 

These changes served as a wakeup call to a younger demographic who suddenly realized that they were free from the rigid constraints of their previous schedules.  And during this time, thousands of Gen Z and millennials sold their homes, moved away from densely populated urban centers to smaller communities, learned to work remotely, and helped their children navigate new educational modalities. 

For the first time ever, some of these younger workers realize that they were no longer constrained by a traditional 9 to 5 work schedule. As a result, some of them took advantage of their new freedom to transition to a nomadic lifestyle as full-time RVers and they joined what had traditionally been a lifestyle primarily limited to the purview of healthy retirees. By the height of the pandemic full-time RVers included older retirees, new retirees, and a host of young people who took their work and their kids (loaded everything in an RV) and set out to live a nomadic life of exploration and adventure.  

RV Industry Impacted by New Challenges

Finally, the pandemic began to fade, but new challenges presented themselves to further impact the RV community.  As international health concerns waned, the new challenges impacting the RV industry were run-away inflation and soaring interest rates.  Economic data confirmed that US consumers had emerged from the pandemic with more savings than before it started, and the US employment rates quickly returned to pre-pandemic levels. But those two positive economic factors were not enough to quell the rising financial storm brewing behind the scenes.

Good unemployment numbers and a 26% increase in personal savings might have been a harbinger of a brighter future, but it was not to be.  Our red hot housing market cooled, inflation exploded, the Federal Reserve embarked on a series of interest rate hikes (11 in all to tamp down inflation), higher interest rates caused several large banks to fail in the spring of 2023, and the US and the world, entered a period of economic and geopolitical instability.  

Some New RVers Ready for a Change

Compounding the impact on the RVing community of global economic uncertainty, many of the enthusiastic new RVers who had plunged into the RV lifestyle at the height of the pandemic, were beginning to rethink their decisions. Some became disenchanted when they realized they were unhappy with the particular motorhome, travel trailer, or fifth wheel they had chosen. Others realized RVing wasn’t as exciting or as economical as they had originally anticipated. The stress of driving, planning, moving, setting-up and breaking-down their RVs had lost its charm, and many new RVers were homesick for all things familiar, (family, friends, and community).  

Additionally, many younger RV nomads were being called back to the office or they realized their children hadn’t adapted well to online learning.  All these factors fueled the used RV market in 2022 and 2023.

By the End of 2023

But by the end of 2023 inflation was impacting every part of our economy and was most acutely felt at grocery stores and gas stations. Additionally, exorbitant interest rates had slowed the real estate markets to a crawl and tamped down enthusiasm for all types of big ticket purchases, like cars and RVs.  That brings us up to the new year. So, what should we anticipate in the RV industry for 2024 and beyond, just more of the same or should we be looking forward to a new era in RVing?

Because you’re reading this article you are probably wondering what you should expect from your 2024 RV experience (or you’re totally bored and have nothing else to read). 

• Maybe you’re thinking RVing could be a viable recreational option for you and your family and you’re wondering if you should invest in a new or used RV.  
• Perhaps you’re a full-time RVer and just have an interest in the RV industry, 
• Or you’re a committed RVer and are ready to upgrade from your current RV to a newer model but aren’t sure about the economic issues and timing.

Short Summary of the RV Industry Looking Forward

Whatever your reason for reading this blog and whatever has occurred over the past few years you should know that the outdoor hospitality/ RV industry is growing and prospering even in this difficult economic environment.  According to RV News, the outdoor recreation industry topped 1.1 trillion dollars in 2022 for the first time and RVing was the leading sector in that calculation.  The RV industry continues to grow and add assets and value to the economy. 

The outdoor hospitality industry employees over 5 million workers in the US which is 3% of the total workforce.  Even though the Institute of Supply Management’s manufacturing gauge for all segments of US manufacturing remains at historic low levels (47.7 -indicating a contraction in manufacturing) RV makers and dealers continue to produce and sell new innovative RV models with cutting edge technology and engineering.  Campgrounds and RV parks continue to add new capacity and enthusiasm for RVing is still very high.

This enthusiasm is evident in the RV Industry of America (RVIA) 2023 survey which discovered that over 20 million Americans traveled and camped in their RVs as part of their 2023 holiday celebrations between Thanksgiving and New Year’s. It was a 30% increase over the 2022 holiday travel season.  

Inflation and Interest Rates Falling

Yes, we will still face some lingering financial challenges in 2024 but inflation is already coming down and the Federal Reserve anticipates lower interest rates beginning in the spring or summer (just in time for the 2024 camping season).  The RV industry continues to grow and there are many opportunities to find good deals on new or used RVs.  

Get Off the Fence, Join the RV Community 

Don’t let the current financial environment keep you on the fence about RVing. Just imagine how much fun it would be to take your family on a long leisurely road trip to discover new places and experience exciting adventures together.  Remember that making memories together helps keep families united and what better way to do that, than in an RV?