ABC News just reported that RV parks are flourishing while all other types of travel and lodging are collapsing.. So why are RV parks doing so well when hotels, airlines, rental car companies and cruise ships are all on the brink of bankruptcy? There are many reasons.
A cleaner way to travel
One of the big concerns for all Americans regarding travel is the fact that the traditional airline and hotel combo is basically gross – you’re sleeping in the same bed as strangers the night before. There were problems with hotel stays even before Covid-19, such as bed bugs. And flying on planes is known to be one of the best ways to catch a cold or the flu due to tight proximity and lack of air circulation. RVs, on the other hand, are 100% safe and clean – you’re the only one to have ever slept in that bed and only our family breaths the air while you’re on the road.
A cheaper way to travel
And then there’s the matter of price. A decent hotel today costs around $150 per night, while a nice RV park costs $30 to $50 per night all bills paid. And, of course, the price differential between flying and driving is night and day. And then there’s the matter of the activities when you arrive. RV parks offer a ton of amenities fully included in that price.
Return to family values
Americans are finding that many of the best things in life are not expensive, except that they do cost time. Family bonding hours are a key component to happiness for many travelers, and the old airplane and hotel experience results in nothing but cell phone use and video games. A study by the RV industry found that the #1 experience for RV park travelers is outdoor cooking. And then all the other amenities such as hiking, swimming, fishing, and mini-golf. They key reason? They all involve the whole family and exclude outside interference.
So what does it mean from an investment standpoint?
If you assume that Covid-19 will be with America for a while (which it probably will) then RV parks are a smart investment. If you assume that Covid-19 may just be the start of future pandemics and other natural disasters that will injure traditional travel options, then RV parks are a smart investment. If you are a visionary that realizes that Americans are looking for lower cost and greater family values when they travel, then RV parks are a smart investment. If you realize the current demographic megatrend is that 10,000 Baby Boomers are retiring per day in the U.S. and a huge number are buying RVs, then RV parks are a smart investment.
RV parks just happen to be in a spectacular position going forward due to some basic traits that were not noticed by most investors prior to the Covid-19 crisis. However, these qualities had been taking shape for some time and the current pandemic just accelerated them, just as it pushed Amazon further ahead of traditional retailers. RV parks, as it turns out, are the best investments possible in the travel industry.