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Price of Fuel

RV Park

Ok so what is it I am not getting. Fuel is at an all time high. Small fuell efficient cars are selling like hotcakes. Tesla Motors is making waves Yet the people who make RV’s are having a great year!

Thor, Jayco even Airstream (my peronal favourite) is expanding. I got to thinking about this. Why is this and how does it apply to campground owners/operators?

I think we have to be more on top of our game than ever before. The reason being our customers are spending significantly more on fuel to come see us. Yet again why are they continuing to do this in record numbers this year?

I think it is for a few reasons.

  1. The price of real estate and rental units along or near water and close to major attractions has skyrocketed also. When the cost of land goes up so does the accommodation fees in the traditional hotels. So to get near your wanted amenity (ie lake) sometimes all that is left that is affordable is the campground.
  2. If we are going on the road in our RV and staying at a campground let’s make it as nice as an experience as we can. Let’s buy a nice RV, travel to some cool spots and then sell it down the road when we quit using it. We will have all our stuff with us, there will be activities for the kids. Plus when driving an A or C class motor home getting there is half the fun.
  3. More and more people are selling their houses and hitting the trail to live full time in their RV. I did it for 6 months and I have to tell you, it was great. Even though we only got 8 miles per gallon in the old girl we met lots of cool people. People you would not meet in an overpriced hotel room. Here is a picture of us on the road.
  4. Lastly I think people are getting desensitized to the high fuel prices. With interest rates so low we can just go into debt more easily and if it costs us a few more bucks to get there, who cares. I believe we are almost hard wired to spend more that we make in today’s society. RV sales are a reflection of that.

As campground owners/operators we have to provide these people with what they want. We do not have to be the cheapest, just provide the most value as they think through their costs. The value proposition has to work.

All for now.

Feel free to comment.

Peter