Important News from RVIA

The current media climate continues to be challenging with fuel prices rapidly increasing across the country. Tough questions are likely to be asked about the impact of these record-high prices on RV travel and sales.

The attached document developed by RVIA’s public relations team offers potential responses to questions you may be asked by the news media in the weeks ahead. We encourage you to use these updated messages so that the industry is speaking with one voice on this issue.

We welcome any suggestions you may have to enhance these message points, which we will update online as needed.

Thank you for your support.

Gary LaBella
Vice President of Public Relations & Advertising
Recreation Vehicle Industry Association

FUEL PRICES AND THE RV INDUSTRY

Spring 2007 — national fuel price $2.61 per gallon
Prepared by Recreation Vehicle Industry Association

RV Travel

• Despite fluctuating fuel costs, 76% of RV owners intend to use their RV more this spring and summer than last and 20% plan to use it the same amount. Only 4% percent say they’ll use their RV less, according to a March survey of 479 RV owners. These findings are even stronger than a similar survey conducted in 2006 when fuel prices were $2.54 per gallon.
  
  
• 93% of RV owners say they’ll use their RVs MORE total days this year than they did last year. 81% of RV owners say they’ll travel MORE total miles this spring/summer than they did last year. 71% say they’ll travel farther from home.
  
  
• RVers who say fuel prices may affect their plans say they will adjust to higher fuel prices by staying longer in one place (56%) and/or traveling to destinations closer to home (60%). But surprisingly, nearly half (48%) say fuel costs will not affect their RV travel plans. Just 3% of RVers say they’ll adjust to higher fuel prices by not traveling in their RV this spring/summer.
  
  
• In times of high fuel prices, RVers typically spend more time enjoying the campground experience and less time on the road. More than 16,000 campgrounds nationwide give RVers the flexibility to save fuel and cut costs by staying closer to home. Whether they travel five miles or 500, they can still enjoy a great outdoor experience.
  
  
• Fuel prices would need to triple from their current level to make RVing more expensive for a family of four than other forms of travel, according to PKF Consulting. Their 2005 vacation cost comparison study shows that RV trips remain the most affordable way for a family to travel because of the significant savings on hotel and restaurant costs.
  
  
• Despite fluctuating fuel prices, RV travel is a great value. The 2005 PKF Vacation Cost comparison study showed that a family of four can save 26-to-74% on vacation costs depending on the type of trip and type of RV used.
  
  
• Fuel price hikes increase the cost of all modes of travel and transportation. Airfares and hotel rates have risen rapidly as fuel costs increase and fuel surcharges are added.
  
  
• Many RV owners surveyed will take additional measures to reduce fuel consumption through simple steps like driving 55 instead of 65 miles per hour, and turning off home utilities to save energy when traveling. RVers travel at a leisurely pace with no tight schedules for flights, hotels or restaurants.
  
  
• Outdoor recreation and vacations offer physical and mental health benefits considered essential by experts, and are priorities for an increasing number of Americans. RVs are a springboard to all types of recreation and travel opportunities. Two-thirds percent of RV owners say they are more physically active on RV trips than on other vacations. 92 percent agree it is important to get away and enjoy outdoor recreation in their RV.
  
  

  RV Sales

• Despite fuel prices, RV factory shipments in 2006 set an industry record. The industry shipped 390,500 new units to dealers in 2006, a 1.6% increase from 2005.
  
  
• RV shipments are expected to be lower in 2007 as dealers adjust inventory. This is expected to be the industry’s fourth best year in the last 30 years.
  
  
• RV consumers have a widening array of product choices to maximize their fuel efficiency, which should encourage continued growth. Approximately 80 percent of the market consists of towable RVs, including many lightweight designs. More small motorhomes are also being introduced.
  
  
• Long-term demographics favor continued RV market growth as the baby boom generation reaches the prime RV-buying age, and more young families enter the market as a result of intense industry promotional activity including the “Go RVing” ad campaign. The trend toward more active outdoor recreation and travel should also stimulate growth.
  
  
• RV industry forecaster Dr. Richard Curtin, director of consumer surveys at the University of Michigan, says growth rates in the RV marketplace are likely to continue accelerating. He projects the number of RV owning households will rise to 8.5 percent by 2010.