Who's
afraid of soaring gas prices? Not
the drivers of these super-luxurious
motor homes.
NEW
YORK (CNN/Money) - You might think
that soaring gas prices would have
the recreational vehicle industry
spinning its wheels. Actually, sales
of motor homes rose by 19.1 percent
in the first half of 2004 versus last
year. And nearly 7 million RVs are
out on the road, according to a 2001
University of Michigan study commissioned
by Recreational Vehicle Industry Association
(RVIA).
This
year, according to RVIA spokeman Jim
Lubinskas, unit shipments have finally
returned to the levels they hit in
the late 1970s. Nearly 390,900 RVs
were sold in 1978. After that, the
industry took a major hit from gas
rationing and price increases during
the Iran hostage crisis.
Why
are motor homes so hot?
"Demographics
are definitely a factor in our favor,"
says Sheila Davis, spokeswoman for
Winnebago Industries. The 77 million
member boomer generation now forms
the RV industry's biggest customer
base.
New
frontiers
One
factor that has contributed to the
accelerated pace of RV sales has been
the discovery that they're useful
for things other than long road trips.
Davis says younger moms and dads are
using them to house the family during
motorcross weekends or to attend Nascar
races, for example.
"You go to a Nascar track and it's
just amazing to see thousand of RVs
congregated," says Ed Caudill, CEO
of Fleetwood, one of the largest motor
home manufacturers.
Another short-range destination has
become the local football stadium
parking lot; John Madden and other
broadcasters have put a bright spotlight
on tailgate parties before football
games.
These
celebrations have become bigger and
more elaborate with tailgaters arriving
six or seven hours before game time
and hauling in tables and chairs,
wide-screen TVs, and gas grills and
deep fryers on which they cook everything
from chili to spare ribs to turduckens.
For such revelers, an RV is practically
a necessity.
Design
and technical advances have made RVs
more useful, too. Slideouts, sections
that advance and retract from the
sides, expand useable interior space.
And smoother suspensions have improved
handling.
The
number of RV-owning households is
projected to rise 15 percent between
2001 and 2010, outpacing overall U.S.
household growth of 10 percent, according
to the University of Michigan study.
Shrugging
off fuel cost increases
Despite
the fuel prices, three-fourths (75
percent) of RV owners say they expect
to travel more and nearly a quarter
(23 percent) will travel about the
same this year as they did a year
prior.
"The
average RV is only driven 7,000 miles
a year and gets 10 miles to the gallon,"
according to Caudill. Even a 50 percent
rise in fuel costs would only add
$500 or so to the cost of running
an RV. As long as there are no long
lines at the pump or rationing, higher
fuel costs should have little impact
on industry sales.
The
desire to take more "mini-vacations,"
enjoy nature, travel at their own
pace, escape stress and spend quality
time with family were cited as the
top reasons to travel more by RV.
When fuel prices go up, RVers say
they continue to travel, but sometimes
adjust their plans or cut off a leg
of their trip.