RV Business Report
Over the past five years, the campgrounds and RV parks industry in Canada has sustained strong growth, according to a written announcement from IBIS World.
Industry enterprises have historically operated RV parks and campgrounds that accommodate campers and provide amenities for a fee. Thus, operators in the industry primarily depend on travel-related trends to drive revenue growth; these trends include RV sales, disposable income and demographic shifts.
Fortunately for industry operators, these three factors have been favourable over the five years to 2014. Increased disposable income and solid RV sales have fueled steady industry growth over the five-year period. With increased revenue and wider profit margins, the industry is expected to continue expanding.
The industry’s largest target market comprises the baby boomer generation, which is set to retire in the coming years. According to IBISWorld Industry Analyst Edward Rivera, “This group is categorized by high levels of disposable income and a surplus in leisure time, which translate into increased demand for leisure activities like RV camping.”
The demographic is expected to continue growing over the five years to 2019; however, it is not clear whether it will be a major market for the industry, as many baby boomers are expected to postpone retirement until age 60 or older. “Some may choose RVs as a low-cost alternative to other leisure activities,” said Rivera, “while others will forego the purchasing process because of dampened retirement funds.”
Regardless of the fate of baby boomers as the main industry market, the Canadian campground and RV park industry is poised to grow in the five years to 2019. Over the period, the purchasing power of the Canadian dollar relative to the currencies of major trading partners is set to decrease, increasing the likelihood of U.S. RV owners staying at industry locations, since their dollar will go further in Canada.
In addition, young couples and families are expected to emerge as a key demographic over the next five years, a factor that is sure to benefit industry operators. In the five years to 2019, industry revenue is forecast to increase at a faster rate than in the previous five years.