RV Rental Market: Introduction
A recreational vehicle, often abbreviated as RV, is a motor vehicle or trailer, which includes living quarters designed for accommodation. Typical amenities of an RV include a kitchen, a bathroom, and one or more sleeping facilities.
Key Drivers of RV Rental Market
- Rapid growth of economies in Asia Pacific, a burgeoning middle class with discretionary income, rising consumer interest in RVs and RV camping, campground development, and a large number of individuals choosing to explore the countryside with recreation vehicles are key factors driving the demand for recreational vehicles and consequently, propelling the RV rental business
- Increased participation in outdoor recreational activities is a significant factor that is projected to drive the market especially in Europe and North America. Sports and active recreation category generates two-thirds of all recreational physical activity spending, as these activities are highly diverse, accessible, affordable, and prevalent across every region and population groups.
Restrains in RV Rental Market
- From mid-March until almost the end of June, global economies have experienced highly stringent restrictions on business activity. Likewise, RV renting business witnessed a decline in demand. However, some renting agencies have turned to a secondary area, serving government and other large clients. In several cases, they are providing RVs for key workers, such as medical personnel, who require lodging when work keeps them away from home. Moreover, people with urgent travel needs have adopted RV rental services. Since the government COVID-19 related restrictions were eased, the demand for RVs has witnessed higher demand to the point that RV dealers have experienced shortfall in inventories, especially in the U.S., as the pandemic made more people reluctant to fly on commercial airlines, take cruises, or travel overseas.
- For instance, Outdoorsy witnessed a 1,500% surge in bookings from the lowest booking day amid the coronavirus pandemic to the highest booking day during the second to last week of May. The company’s popularity has only continued to trend upwards since. Prior to 2020, Outdoorsy was growing 400% year-over-year. However, from April 2020 to October, the company grew a 4,600%. Consequently, 44% of all of the company’s business occurred last year, amid the coronavirus pandemic.
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Opportunities in RV Rental Market
- Younger campers are considering the renting option prior to purchasing their own RV, while RV owners are increasingly making their vehicles available for peer-to-peer rental, seeing a means to generate income from their RV purchase. This trend is anticipated to make availability of more number of recreational vehicles in the market, and lowering the rental prices of RVs, thereby boosting the market.
Asia Pacific to Witness Rise in Demand for RV Rentals
Asia Pacific is a rapidly expanding market for RV rentals owing to expansion of economies, rising middle class that is boosting the demand for leisure-related goods and activities, such as RVs and RV camping. The RV market in China has witnessed significant changes for the last few years, including a national focus on the development of tourism, campgrounds, and the RV industry. Rise in demand for RVs in China, India, and other countries in Asia Pacific led to a shift in travel preferences of consumers choosing to explore the countryside and roads with recreation vehicles. This is projected to fuel the RV industry in the region in the next few years.
Key Players Operating in RV Rental Market
The global RV rental market is concentrated with limited players. A few of the key players operating in the global RV Rental market are:
- Cruise America
- RV Share
- EI Monte RV
- RV Scout