North America Recreational Vehicle Rental Market 2021-2026

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    NORTH AMERICA RECREATIONAL VEHICLE RENTAL MARKET

    INTRODUCTION

    Recreational Vehicles have been in the market for a long time. Some common types of recreational vehicles are motorhomes and campervans.

    Due to the high cost of purchasing and maintenance of RVs, a new market for renting recreational vehicles has gained popularity over the years, with the highest prominence in the North American region owing to the high disposable income of the people of the region.

     

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    The RV Rental companies lease recreational companies and also for private fleet owners they offer consigning services. 

     In the past 5 years, the growth of this industry has been positive however in the last year the growth was negative owing to the travel restrictions in many parts of North America.  The demand may remain low in the next 2 years and may increase thereafter. 

     

    NORTH AMERICA RECREATIONAL VEHICLE RENTAL DRIVERS

    • There is growing demand from people engaged in adventure and outdoor activities like camping.
    • Another group of people are using these vehicles for concerts and short events for whom rental seems a better option.
    • Increasing awareness about recreational vehicles rental services is also leading to more people availing them.
    • The oil prices also affect the market. Low oil prices are attractive for customers.
    • In the given period, generation Z would also be a part of the consumer base and the market is expected to grow.

     

    NORTH AMERICA RECREATIONAL VEHICLE RENTAL CHALLENGES 

    Since this market is heavily dependent on the economic conditions of the region, the demand for such recreational vehicles being rented might be low.

    In 2020, due to the lockdown, travel was restricted and people cut down on their leisure spending which may affect further growth in this market as well. At the same time, the fixed  cost of maintaining these fleets is high and low demand in the previous year caused loss in revenue and profits for the fleet owners. 

    Along with this there is also assistance by the industry and the consumer confidence index is not very high.

     

    NORTH AMERICA RECREATIONAL VEHICLE RENTAL MARKET SEGMENTATION

     

    By Products

    1. Towable RVs
    2. Motorhomes

     

    By Rental Supplier

    1. Individual owners 
    2. Fleet operators 

     

    By Booking Channel

    1. Online channel
    2. Offline channel

     

    The online channel is preferred more due to the several advantages it offers. Firstly, it is more convenient than the offline channel. Secondly, a comparison between different rental services can be done in a click.

    Thirdly, many such online rental service information platforms such as RVshare.com have emerged which give sufficient information required by any user before booking.

     

    By Region 

    The United States has the largest market demand (approximately 50% of the whole of the North American Recreational Vehicle Rental Market).

    The reasons for the same are –  the high cost of owning RVs make people prefer renting them. Individual owners have realized the potential of renting their vehicles and hence offer rental services.

    Many rental sharing platforms have also emerged in the past in the US which add to the convenience of renting these vehicles. There are also a high number of RV parks and campgrounds which are adding to the growth of this market.

     

    COMPETITIVE LANDSCAPE

    The competitors in this industry compete on the basis of mainly four parameters – cost of renting, location of the renting services, availability of fleets and customer service.

    The competition in this market is concentrated with the top few companies with more than 50% of the market share among 3-4 companies. There are high barriers to entry in this market as it requires a huge amount of capital to be invested initially for buying a fleet of recreational vehicles and further maintaining it.

    Some of the players in the market are :

    1. USA RV Rental 
    2. Apollo RV Rental 
    3. McRent 
    4. Cruise America Inc.
    5. Tourism Holding Limited 

    Acquisitions have been a common strategy in the North American region to increase the market share. The number of peer to peer RV rental websites is also expected to increase in the next 5 years which will increase the competition among the players in the market. The rental services will have to be provided at a lower price owing to the increased competition.

     

    SUCCESSFUL STRATEGY OF ACQUISITIONS

    Tourism Holdings Limited

     

    This company has seen tremendous growth in the past owing to its acquisition of companies. It acquired El Monte RV which further helped it grow. It also offers the latest models of motorhomes fleet under the brand Road Bear RV which further helped it to gain popularity in not only the US but other countries as well. It has been able to increase its reach and network providing more locations for pick up and drop. 

     

    Apollo Tourism and Leisure Ltd.

    Apollo Tourism and Leisure Ltd. acquired the company CanaDream. Since CanaDream was based in Canada, Apollo Tourism and Leisure Ltd. was able to expand its reach and provide services in Canada which it wasn’t earlier.

     

    Additional services being provided by companies to maintain their share in this highly fragmented market 

    •  A competitive pricing strategy should be provided by the companies to retain its market share. 
    • Services should be provided in different locations and an extensive network is helping big players become the customer preferred brand.
    • Pickup and drop services are being provided by certain companies with an extensive network.
    • One way rentals is also a new option being provided to customers. 
    • Free shuttle services are being provided for customers who need to be received at the airport.
    • Much like a hotel, these operators are not just giving a vehicle but also provisions for bedding, dishes and toiletries.
    • Keeping in mind the importance of the internet, many operators also provide free or paid WiFi services in recreational vehicles which make such operators more favorable.

     

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2021-2026
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2021-2026
    19 Market Segmentation, Dynamics and Forecast by Application, 2021-2026
    20 Market Segmentation, Dynamics and Forecast by End use, 2021-2026
    21 Product installation rate by OEM, 2021
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2021
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix

     

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