2023 RV industry news and trends in Australia
Despite the pandemic momentarily halting the industry's performance, 2022 turned out to be a record year for the RV industry.
Ever since COVID-19 ravaged our lives, the RV/caravan market has skyrocketed. At first, the market was halted by our extremely harsh lockdowns but then rose like a phoenix from the ashes to become stronger than ever, posting the most successful year the industry has ever seen in 2022. Notably, the Caravan Industry Association of Australia
Domestic travel around Australia, despite its harsh and arid landscape, is relatively easy in the sense that you can get to almost any location in a car as the country (bar Tasmania and other small islands) is one massive island. Seeing Australia from the road in a suitable vehicle is one of the richest ways to truly appreciate its unique beauty and features. With such a massive land mass, and a bounty of flora and fauna to see, appreciating everything is much easier from the road. Often when flying over our vast nation we miss the very details that make it so special. Additionally, touring in an RV allows you to travel at your own pace and really soak in the aspects that are valuable to you.
Keep reading to find out what is trending in the RV industry for 2023 and beyond.
RV usage on the rise
Research released by the CIAA showed the usage of RVs in Australia is on the rise. In its Caravanning and Camping State of the Industry 2023 report, looking at data from 2022, figures showed that almost 50,000 new RVs were registered to the market, while the number of locally produced units reached 28,031, a 17.1 per cent increase on 2021 and represents the highest figure since Cyclone Tracy in 1974. Further to this, 20,498 RVs were imported into Australia in 2022, a 37 per cent increase on the previous year.
Looking to 2023 and beyond, the industry is expected to continue growing at a fast pace — despite the economic pressures of higher interest rates and people tightening their belts. However, with saying that, pressures due to the fast growth over the last few years has affected delivery times on new RVs. This is primarily due to issues in the supply chain and increasing costs. So, 2023 will not be without its challenges, but in spite of this, Aussie manufacturers continue to bring new and innovative models to the market.
Rising rents
Due to today’s RVs being sophisticated pieces of machinery, they come with quite a hefty price tag. Unfortunately, together with wage pressures, many millennials (and other generations) are priced out of the RV market, necessitating the turn to renting. According to market research firm Mordor Intelligence, “Growth in peer-to-peer rental services is expected to increase in popularity among millennials, which are increasingly seeking rental services.”
Not only are more people renting RVs and caravans, but due to the cost-of-living crisis in Australia together with seemingly never-ending rent increases, some people (according to Mordor Intelligence) use their RVs as their main residence. This can have a multitude of benefits such as being able to live in virtually any location and being able to change that location whenever you want, having less maintenance (than a house, for example), lower insurance costs and more.
According to the CIAA, due to the eight consecutive interest rate increases by the Reserve Bank of Australia and other factors weakening consumer confidence, the full effects of how this will affect the caravanning and camping industry won’t be felt until this year (2023) and the following years. Turning to RV ownership as a cheaper means to own one’s residence could be an increasingly popular option in the future.
A tourism opportunity for small towns
With the RV industry growing at a rapid pace, so too are the number of caravan parks and campgrounds to accommodate said RVs. This increase in the number of RVs and campgrounds is a business opportunity for many small towns across Australia. Previously, these small towns were seldom visited by many a traveller due to their remote location and a general favour for international travel from the Australian public. With the changing trends, these small towns are getting the opportunity to increase their foot traffic, economies and reputation.
According to the CIAA, “A total of 15.1 million overnight caravan and camping trips generated over 60.9 million visitor nights and $10.4 billion in revenue [in 2022].” With so much money flowing into the market, these small towns can only stand to benefit from a more localised tourism industry.
The rise of the hybrid
According to Mordor Intelligence, as recreational domestic travel in the country grows, manufacturers are adding multiple slide-outs to RVs and caravans to increase the living space and are designing a large variety of floorplans with larger chassis versions. This adaptation of a traditional RV/caravan joins forces with features from a camper trailer to create what is now known as a ‘hybrid’. The easiest way to spot a hybrid versus other types of RVs is that the entire kitchen, pantry and fridge are on the outside of the trailer.
The ‘hybrid’ caravan–camper trailer was first formally introduced to the Australian market in 2008, according to Australian Off Road Managing Director Steve Budden, who brought the ‘Quantum’ to the 2008 Brisbane Show — a fairly expensive little 13ft pop-top … $70,000 was a lot more back then. Often with new concepts or products, it was received by a mostly confused audience who didn’t understand its benefits versus a traditional caravan or camper trailer. However, after slowly discovering that hybrids give users the comforts, security and features of a van along with the offroad performance and manoeuvrability of a camper trailer, sales soared.
According to the CIAA report, Aussies very much favour towable versus motorised motorhomes (96 per cent versus four per cent), and hybrids are an important part of that market. Rhinomax Campers’ Director Steve Punton says the hybrid market is a very advantageous market to be in as a manufacturer, as you’re able to pull customers from each segment (camper trailer/caravan/motorhome). With more than 28,000 RVs manufactured in Australia in 2022, that number is only expected to grow and there are countless opportunities for hybrid models to come to the market in 2023.
A $27.1 billion industry
The caravanning industry — including caravan parks, manufacturing and trade and visitor expenditure — contributes a massive $27.1 billion to the Australian economy annually. With 792,713 RVs registered in 2022 and a market that doesn’t look to be slowing down anytime soon, 2023 looks to be an exciting year for the industry. With more and more RVs and associated products due to be released this year and beyond, the Aussie economy and local manufacturing can only benefit from this sustained growth. It’s an exciting industry to be a part of and we will continue to keep you updated at TradeRVs.
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