In this blog, we’ll be going over the biggest RV news stories of 2021 and look at what might be ahead for 2022. We’ll also cover some of the latest travel trends and news. There is a lot to cover, so let’s get to it.
Let’s Review the Biggest RV News Stories of 2021
First up, the Recovery of Traditional Travel
One of the big stories developing in 2021 has been the recovery of air travel. January 2021 started out with under 40% of 2019 volume. This increased steadily through the year to just under 85% of volume in December. As more people got vaccinated, air travel recovered. Some thought that as traditional forms of travel recovered, RV travel and the demand for RVs would diminish, something that did not materialize. In fact, RV production has soared in 2021, which leads to the next big story.
RV production has set new records every month of 2021 compared to prior years. By October, the RV industry had already outpaced 2017 record levels and is on track to produce over 600,000 RVs this year. Even with parts and labor shortages, the industry has been able to increase output to meet increasing demand.
Next up, Increasing Prices and Labor Shortages
A big story this year was the shortages in parts and labor, and with it, price increases on new RVs. As supply inputs and labor prices rose, manufacturers raised pricing on most new RV models. Part of the story was the ever-increasing log of backorders due to these issues. Many dealers became online order processors by mid-year, with customers buying RVs sight-unseen.
A very interesting side-effect of shortages and price increases for new RVs has been increased pricing on used RVs. This year has seen large, unprecedented price increases for used RVs. At the end of 2020, many thought that used RV prices would come down in the spring of 2021, but the opposite happened as new RVs became hard to come by. Those of us who have late model RVs have seen pricing increases, even with increased supply, to the point of being able to sell for more than the trailer was priced new. Backorders and pricing on new RVs have been a windfall for used RV owners who can provide a turn-key RV available to a motivated buyer.
Next up, Quality Issues Reported by Anonymous Dealers
Another big story hit the press in September when Mike Gast of RVTravel.com[1] reported on several anonymous dealers saying that RV quality is the worst it has ever been. Mike sat in on a dealer conference call where the sentiment was broad and sharp from dealers toward manufacturers. Inevitably, when production is at peak levels, and unemployment is at all-time lows in Elkhart Indiana, quality will suffer as new line workers are employed and are building RVs at a faster-than-ever pace. The unemployment rate in Elkhart was 3.5% in January 2021 and went down to 1.4% by November.[2] This is the downside to a 600,000-unit RV production year.
Next up, Class B’s take-off
Another important trend that continued to develop was the popularity of Class B camper van sales. These have consistently broken all records as more affluent customers buy into the RV lifestyle. Class Bs are expensive, small, well equipped, and very versatile, making it easy for well-off singles and couples to explore various camping options and work remotely.
Next up, New Small RVs Hit the Market
The biggest story for 2021 on the small RV market was the entrance of Ember RV this fall with uniquely featured off-road models. These new models come standard with composite flooring, Azdel walls, and roofs, along with special chassis and suspension — making Ember a solid choice for anyone looking for a step up in RV features.
In other small RV news, likely the largest maker of smaller RVs, R-Pod, did an about-face in 2021 and began eliminating most of their smaller models that have sold well for several years. In late 2020, they dropped the popular 179 model, and in mid-2021, they proceeded to suspend production of several other wet-bath models along with the popular 180 dry bath model. They did introduce the new small rear-entry 153 model, which was a change from the more traditional models they had been making. This happened at roughly the same time as Winnebago and Jayco began production of smaller RV models with the Winnebago Hike 100 and Jayco Jay Feather Micro.
Finally, Fuel Prices Increase Sharply
Fuel prices that directly impact RV travel were a story of their own this year. Gas and propane prices increased sharply in the summer and fall of 2021 to near record levels. December witnessed a slight decline from record levels, yet it remains 45+ % more expensive to travel this year vs. 2020.
The current national average price per gallon of regular unleaded is $3.293 as of 12/23/21[3], down 11¢ from a month ago and up from $2.247 a year ago. Given a long trip of 3,000 miles with your tow vehicle getting 10 mpg, it would cost you $987.90 now vs. only $674.10 a year ago — over a 46% increase.
What about 2022?
For the foreseeable future, it looks like the current environment of labor shortages and higher prices will continue, including backorders for new RVs. This should mean that prices for used RVs will remain high even though there has been an increase in used RV inventory. If you believe that the pandemic has brought about a seismic shift in how people work and escape going forward, then the trend to live and work remotely will continue, and so will demand for RVs of all sorts. If you fall into the camp that this isn’t a seismic shift in travel and work lifestyles, then at some point the music will stop, and we will see a reversal of much of the current trending.
I do think we are living in a time that is somewhat of a seismic shift in work and travel habits as internet bandwidth and better technology are making a remote living and work lifestyle much more accessible. I don’t think this trend is as all-encompassing as some in the industry think it is, as many are dabbling in this new lifestyle now and are finding out that it isn’t as easy as first thought. Bandwidth isn’t great in many places, making it tough to join conference calls. This could change in the next few years with the advent of companies like Starlink, making quality and fast satellite internet a reality for those working remotely.
My guess is that a year from now, many of the current issues will still be with us, including elevated prices on most things, including fuel, food, and things like RVs. It should still be a great time to sell. Of course, any number of international events could upend the current on-fire economy and turn things in a different direction. We shall see.
All the best in your camping endeavors!
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