Interest in RV travel is exploding. Retirees hit the road to check destinations off their bucket lists. Young families are eager to share a camping experience with a new generation. Millennials are pulling up roots to become digital nomads. Everyone is eager to go RVing… but not everybody is ready to buy an RV. Enter the RV rental market which has undergone phenomenal growth in the last few years
According to surveys done by the Recreation Vehicle Rental Association (RVRA), rentals of RVs are exploding, with fleets of rental vehicles up for the fifth straight year, and average contract length getting longer. Revenues are expanding right along with them, up in some cases by 50 percent.
You might expect RV dealers to be unhappy about the new surge of interest in renting RVs as opposed to RV sales. But that’s not the case.
MobileRVing.com spoke with several businesses that both rent and sell RVs. Linda Stephens, Vice President and General Manager at Lazydays, one of the biggest players on the dealership side, says her organization is thrilled by increased interest in RV rentals.
“We think it's fantastic,” she said. “It fuels future purchases. Industry statistics show that around 25 percent of people who purchase RVs have rented in the past.” Stephens wears many hats in the Lazydays organization- overseeing the national rental program and aftermarket accessory sales at the company’s five locations, heading the communications team as well as overseeing the award-winning 300-site RV park next to the Tampa headquarters.
Lazydays offers a range of rental RVs - including Class A, B, and C motorhomes as well as 25-ft. travel trailers to suit every demographic from large family groups to retired couples.
“Family camps with their Apex trailer from Giant Rec World.” [Photo/Giant Recreation World]
“We want renters to have the full lifestyle experience,” Linda says. “So we rent everything from high end Class A motorhomes with four slide-outs, outside TVs and showers to smaller Class Bs, perfect for a retired couple. And many families prefer to rent Class Cs.”
Rentals of travel trailers are also on the rise, according to Stephens. “Lots of people own SUVs with trailer hitches. As long as their vehicle meets the required towing capacity, they can rent a trailer. Our Colorado locations especially rent a lot of trailers.”
Lazydays offers several features to make RVing easy for renters, including unlimited mileage and unlimited generator use. They’ll also outfit an RV with all the kitchen equipment, linens and outdoor gear a renter might need. “This way, they don’t need to go shopping first thing,” Linda says. “Our goal is to make sure people have a great experience.”
While families make up the majority of rental clients, including many visitors coming from overseas, dealers are also seeing an uptick in rentals by non-family groups hitting the road together to attend sporting events and experience outdoor adventures. Giant Recreation World, a major player on the Florida dealership scene, has long experience with this trend. Every year, it rents numerous units during the NASCAR and other races in Daytona from its nearby dealership in Ormond Beach.
With three locations, Giant Recreation World has been selling RVs in Central Florida for 40 years, growing into the region's largest RV dealer. The company began renting vehicles 20 years ago. Besides renting to Florida visitors and Daytona race goers, it provides rental RVs to Disney World and Universal Studios for special events from its dealerships in Winter Garden, Ormond Beach and Palm Bay.
Barb Leech, who handles rentals in the Winter Garden location near Orlando, says the company’s rental business is booming. “I’m renting about 100 units a month,” she says. “I’ve done seven rentals just today. Right now I’m booking for next January.”
Leech says that Giant Recreation World rents Class A and Class C motorhomes, as well as trailers and fifth wheels. “We do a couple of unusual things,” she says. “We’ll deliver a unit and set it up, then come pick it up at the end of the rental. We also rent golf carts, and, since it’s legal to tow them, people just hook one up to their motorhome rental and off they go.”
Another unique aspect of the Giant Recreation World fleet is that its rental RVs are new every year. “Once they reach 20,000 miles, we consider them used and turn them over to the sales department,” Barb says. “People can get a used unit, with low miles, at a decent price.”
One of the ways the company keeps its rental fleet busy is by listing its RVs on Outdoorsy. “It’s not just peer-to-peer,” Barb says. “A lot of dealers list with them. The difference with renting one of our units, as compared to a privately owned one, is that renters can be sure it’s been well-maintained and is a new model.”
Leech agrees that rentals generate sales. “We’ve had several people rent from us, then buy, then rent again,” she says. “People want to try out a model before they buy.”
According to a new survey by the RV Rental Association, the North American RV rental fleet will expand again in 2018, with 43 percent of RV dealers and rental agencies surveyed saying they plan to expand their number of rental units. Revenues are increasing as well with 60 percent of the operators expecting higher revenue from rentals again in 2018.
“This segment of the market continues to be a winner for the RV industry,” Scott Krenek, RVRA Chairman and owner of Michigan’s Krenek RV Super Center, says on the RVRA website. “The RV rental market is healthy and growing. That’s why so many RVRA members are looking forward to a great summer. Renting RVs is not only a good business for dealers, it helps drive interest in RV travel and use.”