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RVIA Claims - RV Industry Won't Be Impacted Until Fuel Reaches $10 per Gallon

Posted 03-07-2012 at 05:38 PM by DriVer
Updated 03-08-2012 at 08:26 PM by DriVer

From RV D@aily Report:

By Greg Gerber @ 12:41 PM

SOUTH BEND, Ind. -- Quoting a spokesman for the RV Industry Association, the South Bend Tribune reported yesterday that high gasoline prices don't diminish the economic advantage RVing has to offer until the price reaches $10 per gallon.

"The fuel prices don't really impact RV sales quite the way a lot of people might think," Kevin Broom, director of media relations for the RVIA, told the South Bend Tribune. "Part of it is there's so much savings already built into RVs that stay when fuel prices rise."

Broom noted that San Francisco-based PKF Consulting conducted research on behalf of RVIA and concluded that fuel prices would have to get to nearly $10 a gallon before the most expensive RV -- a Type C Motorhome -- would lose its economic advantage, the Tribune reported.

To read the full story in the South Bend Tribune, click here.

In response, Bob Zagami a long time Editorial Contributor and RV Industry Professional shares these thoughts with us:

Wednesday, March 07, 2012 3:07 PM
What an unbelievable statement to make when people can't find work, the country is head over heels in debt, and RVIA doesn't think that gas at $10 a gallon is going to impact consumers RVing habits or further erode RV sales? There must be a full moon rising over Reston.

Even a consumer with a million dollar Prevost is going to choke when his/her 300 gallon tank takes $3000 out of there wallet. The impact and consequences are even greater with the average RVer who truly wants to enjoy their trailer or motorhome, but if they think $10 a gallon is not going to bother them, then it just tells me that the folks at RVIA have never been in a campground and have no idea how this statement will be ridiculed around the country.

I just can't imagine this industry association making a statement like this when gas at $10 a gallon could wipe out half their membership of manufacturers. While they (RVIA) are vacationing in Palm Springs - far away from reality - maybe they should take a vote and see how many of their members agree with a statement like this being provided to the press. Is this how they are handling public relations and communications in-house these days?

This is truly an unbelievable statement to make given the state of the economy today? Do they think people are standing around the water cooler telling their friends they are not worried about $5 a gallon gas and can't wait for it to get to $10 and they still won't change their camping or RVing habits?

It does not take an MIT genus to understand that RVers will travel less, more used units will be dumped on the market, and new unit sales will plummet.

I agree with Bob's comments and if you want to add to the Blog please feel free to do so .....
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  1. Old Comment
    NLOVNIT's Avatar
    They're kidding, right?!?!? The RVIA is completely out of touch with reality with that line of thinking & making a statement like that proves it. Plus I wouldn't put much stock in believing the results of a consulting firm that states a Type C motorhome is "the most expensive RV"

    Posted 03-08-2012 at 05:50 PM by NLOVNIT NLOVNIT is offline
  2. Old Comment
    TheRVManiac's Avatar
    Wow, that's a pretty clueless thing to say. We just bought our first coach and we are very excited to use it, but gas prices will still impact where we go. In addition, while it was easy to justify what I spent for a used unit, I would be hard pressed to consider a new unit at all if gas gets to the $5 mark. At the used price, I can easily balance what I am getting out of the experience with what I am spending. At more than $5 plus the cost of a new coach, I just couldn't do it. True silliness on the part of the spokesperson.
    Posted 03-13-2012 at 09:24 PM by TheRVManiac TheRVManiac is offline
  3. Old Comment
    DriVer's Avatar
    Initially Energy Secretary Chu was calling for parity with European gasoline prices. He earlier reportedly called for $10.00 gasoline.

    Looks like someone woke up ... too late I expect.

    Energy Secretary Steven Chu reversed his stance on high gasoline prices, telling a Senate committee Tuesday, "Of course we don't want the price of gasoline to go up. We want it to go down."

    Perhaps someone could write a thesis about; "Putting the Genie back in the Bottle 101" using the Broom/Chu playbook.
    Posted 03-14-2012 at 05:21 AM by DriVer DriVer is offline
    Updated 03-14-2012 at 06:54 AM by DriVer
  4. Old Comment
    padre44's Avatar
    We've already cut back on two trips this year so far. High gas prices are also hurting the whole economy. Hope we get another administration next year who really wants jobs and low energy prices.
    Posted 03-17-2012 at 01:30 PM by padre44 padre44 is offline
  5. Old Comment
    Since fuel, both gas and diesel have gone over the $4.00 per gal, there is a noticable decrease of vehicles on the road in Bakersfield, Ca.
    My opinion - if fuel prices exceed $5.00 per gallon, the RV traffic will reduce significantly. Should the price of fuel go to $6.00 per gallon it will just about stall the use of RV's. If fuel goes to $10.00 per gallon RVing and many, many other forms of recreation will DIE! Public transportation of all kinds, where available, will be very busy. NOT A PLESANT thought, but it may happen.
    Posted 03-17-2012 at 01:51 PM by CarlGeo CarlGeo is offline
  6. Old Comment
    scenic route's Avatar
    Apparently Mr. Broom's pockets are much deeper than mine...with the current fuel price trends, I think that we have pretty much bought our last RV. Bob :-)
    Posted 03-17-2012 at 03:28 PM by scenic route scenic route is offline
  7. Old Comment
    MAU MAU's Avatar
    If gas goes to $10.00/G the RVIA will be a thing of the past.

    They pump out propaganda such as this to save their own jobs. Period.
    Posted 03-17-2012 at 05:29 PM by MAU MAU MAU MAU is offline
  8. Old Comment
    I wonder what the RVIA is smoking?
    Posted 03-17-2012 at 09:17 PM by LadyFitz... LadyFitz... is offline
  9. Old Comment
    paz's Avatar
    I think the RVIA is waaaay too optimistic. When gas hit $4 back in 2008, a bunch of RV manufacturers went out of business. The ones who are left are probably stronger and most of them have added smaller RVs to their lines, so they may last a little longer; but I don't know how many manufacturers can stand another hit like we had before.

    I think many RVers have already begun to curtail their travel plans and that means there won't be as many buyers. I think the threshold for trouble for the RV industry is somewhere between $4 and $5 a gallon, not $10.
    Posted 03-18-2012 at 02:57 PM by paz paz is offline
  10. Old Comment
    W4MBG's Avatar
    probably one of the stupidest things i have seen in a long time.
    Posted 03-19-2012 at 07:43 PM by W4MBG W4MBG is offline
  11. Old Comment
    Gary - K7GLD's Avatar
    RVIA is clueless, whistling in the wind, and has obviously totally forgotten what the impact of fuel prices has ALREADY done to the RV industry, as well as related peripheral industries!

    So they think LOTS more of the same will have little or no effect? Only if your name is Donald Trump or other similar rich folks - who most likely don't RV anyway!
    Posted 03-20-2012 at 07:19 PM by Gary - K7GLD Gary - K7GLD is offline
  12. Old Comment
    This is a JOKE right? Maybe he should see how many "rich" folks purchased a custom conversion bus shell last year (2011). Let me inform him 60 units that's all, and that was before diesel hit $5.00 in some areas. People don't have their houses as ATMs anymore (down 40%) Foreclosures are up and short sales are becoming the norm. 23% of the population are unemployed, 43 million are on food stamps, wheat is up 74% and I could go on. NO the only one who can afford not one but two PREVOSTs is our President, and if it was his money he wouldn't buy them. deSanford
    Posted 03-20-2012 at 09:43 PM by deSanford deSanford is offline
  13. Old Comment
    Shadowcatche's Avatar
    You have only to look at the size of EU caravans and motor homes and to look at the rise in popularity of Teardrop Trailers here in the US to see how wrong they are. We bought a Tear for this very reason, anticipating gas prices.
    Posted 03-21-2012 at 04:32 AM by Shadowcatche Shadowcatche is offline
  14. Old Comment
    IRVTrekin2's Avatar
    I would be hard pressed to ever take anything seriously that RVIA ever said after making such a lame brain statement. Do these people actually think they have the pulse and best interests of the RV industry.
    Posted 03-21-2012 at 11:05 PM by IRVTrekin2 IRVTrekin2 is offline
  15. Old Comment
    They are just like the [Moderator Edit] media, and our president, they believe that if they say it enough times then people will believe & accept it, don't accept it
    Posted 03-22-2012 at 09:56 PM by sevenmacs sevenmacs is offline
    Updated 03-23-2012 at 07:53 AM by RJay
  16. Old Comment
    Never say never-- I started motorhoming in 1971, gas was $.30/gal, soon it went to $.60/gal, then doubled again to $1.20, needless to say it doubled again to $2.40, looks like may double again to $5.80. Does doubling again sound impossible ? I say no, it'll happen, the question is when ?
    Posted 03-23-2012 at 03:40 PM by wazone3 wazone3 is offline
  17. Old Comment
    DaveBills's Avatar

    Out of Touch with Who??

    The fine folk at RVIA may be right to make that statement as they sat under the canopy of their 575 thousand dollar motorhomes. For them that is probably a fact, but then there are the rest of us. The ones that have retired early and are eagerly looking forward to seeing this country in a way not too many understand, including those folks sitting under the shade canopy of a 575 thosand dollar motorcoach. Our adventures, the rest of us, are governed by finance and where we go and what we do is always a financial issue. Not that we're poor, we're just not able to play at $10.00 a gallon like we can at $2.75. They just can't see it or us.
    Posted 03-25-2012 at 08:24 PM by DaveBills DaveBills is offline
  18. Old Comment
    Pricejh's Avatar
    The RVIA Spokesman must moonlight as a saleman for some RV Park Timeshare outfit. Same twisted logic. I didn't buy the park mambership and I don't buy the $10.00/gal gas. If it comes to ten buck gas I'll buy a foreclosed lot and park the rig on it and call it a summer cabin.
    Posted 03-26-2012 at 10:25 AM by Pricejh Pricejh is offline
  19. Old Comment
    I happen to agree with the comments by RVIA. When I started driving years ago the price was $.33 gal in Canada. I wondered if I would afford to drive once it got to $.50. Now it is over $5. here and I am still driving. Most RVers travel less than 5,000m annually and I don't see us giving up our rigs any time soon. If I spend $1,000 on fuel this year and it goes up by 10% next year I won't stay home for the sake of $100. We will plan a little better, maybe take shorter trips but we won't stop for the sake of a few extra dollars.
    Posted 03-26-2012 at 06:20 PM by camperme2 camperme2 is offline
  20. Old Comment
    rocknrun's Avatar
    It would be interesting to get an accurate report of RV dealer sales. I know in my area from private parties I'm seeing lots of RVs for sale and have seen some very good prices in motor homes. If gas does edge towards $10 a gallon RV sales will probably trickle down to nearly nothing. The manufacturing and delivery cost of RVs (along with everything else) will also increase. Does the RVIA think their manufacturing members are going to simply absorb that cost?
    Posted 04-21-2012 at 05:34 PM by rocknrun rocknrun is offline
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