RVBusiness, March/April 2020

BY PAIGE BOUMA Millennials Can Help RV Renters Improve a Revenue Stream 78 of RV renters say they prefer to rent from an RV dealer As opposed to working with a peer they trust the experience theyll receive and feel confident that the unit theyre renting will be clean and well maintained RVBUSINESS GUESTVIEW O ur industry is changing Historically when a consumer wanted to get involved in RVing they purchased a unit and hit the road But with the try before you buy mentality in full effect more and more consumers are opting to test out the RV lifestyle before jumping right into ownership While RV renters have long been a small part of our industry their numbers are growing To put that in context in its 2019 report KOA shared that 1 4 of all campers use an RV but 44 dont own that unit To better understand this rapidly growing segment RV Trader surveyed more than 2000 consumers who have either rented or considered renting in the past two years The report the RV Dealers Guide to Unlocking the Value of RV Rentals also included advice from industry experts Topics covered in the study range from the pros and cons of dealer owned and dealer managed fleets to strategies for attracting rental customers unit maintenance renter screening rental booking management insurance and legal issues The report calculates that dealers can generate 7500 to 30000 in revenue from a single RV rented for only 100 nights per year depending on whether the unit is a travel trailer or Class C or Class A motorhome Lori Stacy CEO of RV Trader parent company Trader Interactive said that while trends in RV sales have been changing since 2018 RV rentals and rental tobuyer conversions are clearly on the upswing That gives dealers the opportunity to generate new revenue streams both today and in the future since todays renters can turn into tomorrows buyers She said RV Trader hopes the study will help dealers connect with this audience 28 RVBusiness M A R C H A P R I L 2 0 2 0 provide the services theyre looking for and build a strong rental business that will keep them competitive and relevant Industry trade organizations indicate that the RV rental industry will continue to grow for the next several years bringing increased participation from consumers and profit for dealers The new RV Trader study paints a detailed portrait of who those renters are their rental habits and purchase plans and their preferences in making rental arrangements based on the marketplaces own consumer survey Among the findings They are mostly Millennials Nearly 60 of renters are Millennials as compared to 26 of buyers providing dealers with an excellent way to reach a new younger audience develop a new revenue stream and fill the pipeline with potential buyers Renters dont necessarily stay renters for life Our research found that a portion of renters will ultimately decide to purchase While demographically these renter buyers look extremely similar to life long renters there is one notable difference Nearly half of renter buyers make over 100k annually meaning they have a higher discretionary income as compared to renters Repeat business As they are making their decision about whether to continue renting or dive into ownership a renter will typically rent 2 3 times which is great news for a dealer because you get the repeat rental business plus the revenue generated from the sale They put time and effort into their search Even though they arent looking to purchase deciding what unit to rent is still a big decision for this audience They spend almost as much time researching their options as buyers do with over half investing seven months to two years evaluating what unit will work best for their trip and 80 turn to the Internet when they need information about their search Dealers are their preferred partner 78 of RV renters say they prefer to rent from an RV dealer As opposed to working with a peer they trust the experience theyll receive and feel confident that the unit theyre renting will be clean and well maintained This trip is something theyve dreamed about and spent time planning for so they want to be sure everything will go smoothly and they trust a dealer to provide that experience Rising popularity The rising popularity of rentals is also reflected in a surge in rental interest on the RV Trader marketplace According to the study 41 of RV Trader monthly visitors expressed an interest in rentals and 30 used the site as a rental resource even before the marketplace added an RV Rentals section enabling consumers to quickly zero in on units available for rent by location and departure return date The new functionality also features an automated calendar to handle rental reservations distribute reservation reminders and collect funds once a booking has taken place streamlining rental paperwork for dealers Theres a lot that goes into offering RV rentals but if you decide its the right move for your dealership it can be a great way to bring in additional revenue and engage a new audience For a more in depth dive into this audience and how to bring rentals to your dealership feel free to download our whitepaper on the topic at rvtradermediakit com rentalslaunch RVB Paige Bouma is currently vice president for Trader Interactives RV Trader Paige is a leader in both sales and product development management She has more than 14 years of experience in RV advertising media Her passion for the industry combined with her years of experience allows her to aptly bridge both digital media and sales development Her expertise includes roles leading in customer service digital advertising large scale partnerships and dealership consultation