For Summer Vacations, RV Renting Is a Hot Business Model

Though it’s unlikely that many American viewers have watched it, ViacomCBS’ Channel 5 in the U.K. boasts a lively little reality program called Rich Kids, Skint Holiday. The setup: Pluck trust-fund teens from their luxurious homes and send them on “budget-conscious jollies” with ordinary people. A recent episode of particular note featured Hattie Garment, a 19-year-old heiress who lives in a mansion outside London, paired for a camping vacation with the humble Hayward family. Within an hour of arriving at a campground in Sussex, Garment plops down in the bug-infested tent she’ll be sleeping in and promptly breaks into tears. “It’s not what I had in mind,” the despondent teen moans. “How do people have fun doing this?” Sure, Garment’s travails may have happened over in England, but her rebuke is one shared by a good many ordinary people on this side of the pond as well. As summer travel season heats up, untold millions of Americans who’d love to visit the shore or a national park simply won’t do it because tent living just isn’t their idea of a vacation. But for Jon Gray, those people aren’t complainers—they’re potential customers. Gray is the CEO of RVshare, an 8-year-old platform that’s basically the Airbnb of motor homes and trailers. Vacationers who pine for the great outdoors—but not for sleeping on the ground—can scroll through some 100,000 listings posted by recreational vehicle owners eager to rent their rigs. And with Americans busy booking their Fourth of July getaways right now, RVshare’s business has doubled over last year. RVshare has some 10,000 owner-posted listings of RVs for rent. Turn in that tent Gray insists he’s not down on the idea of sleeping in a tent. It’s just that, well, it means sleeping in a tent. (According to a survey by research firm Wakefield, 62% of people who already consider themselves to be campers would rather flop in an RV bed anyway.) “We think tent camping is wonderful but taking an RV on a camping trip instead is just an upgrade,” the CEO told Adweek. “You get everything that you get in a tent, but you don't have to sleep on the ground. You get to sleep on a comfortable bed. You get to bring a kitchen. You get to bring a bathroom along with you. And most importantly, [you get] an air conditioner.” Right now RVshare is encouraging outdoorsy Americans to trade up to an RV with a new promo called “Turn in Your Tent.” Every traveler who surrenders their (gently-used) tent will receive a $250 credit toward an RV rental on its platform. RVshare will give the surrendered tents to Gear Forward, a nonprofit that supplies outdoor equipment to youth groups that can’t afford to buy it new. RVshare's brand’s marketing vp Martijn Scheijbeler explained that people who are already into camping are prime candidates for upgrading to sleeping inside something with wheels. “One of the biggest demographics [is] people that are familiar with the outdoor space but aren’t necessarily familiar with RV rentals,” he said. “We want to raise the awareness [and say], ‘Hey, there’s something else out there. You don’t always have to stay in your tents and lay on the ground. You can be staying in a nice RV.'” The average per-night cost of an RV is less than $150, which is cheaper than the rates many decent hotels charge. A Camping Renaissance As Adweek reported at this time last year, quarantine-crazed Americans, too afraid to fly, were choosing driving vacations in record numbers. And while RVshare’s bookings did surge last summer, Gray attributes the continued interest in RVs to forces that predated the pandemic. “I don't think Covid started any trends in travel—I think it accelerated trends that were already there,” he said. “We've been observing a desire of travelers to become more experiential in their travel, to stay local as opposed to in a canned hotel experience. And as the U.S. has become more urban[ized], the desire to get away from urban areas on vacation has become more intense.” The numbers bear his observations out. According to the RV Industry Association, manufacturers are forecast to ship over 576,000 rigs by year’s end, which is nearly a 34% increase over 2020’s total. “Even with other types of travel returning,” RVIA president Craig Kirby said in a statement, “the demand for RVs continues to climb.” The association’s data also shows that, this summer, 56 million people say they plan to go RVing (yes, that’s a verb) in rigs they “rent, own or borrow.” Much like Vrbo did for home rentals, RVshare pioneered the peer-to-peer marketplace for campers. Paying for the “nice” RV Another factor likely contributing to the popularity of RV renting comes from the owner side and is purely economic. RVs are not cheap to buy, insure or maintain, especially for an accessory that’s not taken out very often. RVIA’s data show that the median annual usage for an RV in America is 20 days. What about the other 345 days out of the year? The thing sits in the driveway. “The RV is so expensive to purchase, and they're a depreciating asset,” Gray said, adding that owners who rent their rigs out often enough can cover all of their ownership costs, “which is a pretty compelling value proposition.” It’s often one for renters, too. While RV dealerships have long rented out campers and motor homes from their lots, the peer-to-peer model broadens both the selection and price range. According to RVshare’s own data, the average weekly rental on an RV runs about $1,000. That comes to $143 a night—a price many are willing to pay for the benefit of a bathroom, shower, AC and the aforementioned bed that’s not on the ground. (RVshare makes money by taking a commission on each booking; the site is free to use for both those who list and those who browse.) City slickers in the woods While Gray maintains that the pandemic has not changed the basic demographics of his business (families are still his bread-and-butter customer), it has changed the psychographic. The CEO says he’s seeing an increase in bookings from people who—newly empowered by their employers to work remotely—would like to work from a woodland location. He's also noticed more families combining the workweek with a getaway inside of one booking. “The other thing that we've seen is that our user base has become more affluent,” Gray added. “There's now far more people who live in urban areas who were interested in renting an RV. Our highest growth market for renters right now is New York.” Alas, that still leaves out the likes Hattie Garment over in the U.K. But word is she’s had her filling of camping of any sort. Uber Urges People to Get Back Out on the Road Again in New Ad Campaign

Travel Advertising News

As Americans Plan Summer Vacations, RV Renting Is Suddenly a Hot Business Model

Segment leader RVshare capitalizes on tent fatigue

Robert Klara

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Robert Klara