Older consumers critical to RV industry in Australia – report

People who travel to remote locations comfortably and economically using the nation’s road networks need time to travel and money. As a result the industry’s most lucrative market segments are baby boomers and seniors. In the five years through 2012-13, the proportion of Australians over the age of 50 has increased and the industry has entered a growth phase. Industry revenue has increased an annualised 4.1% to reach $1.09 billion. Over the same period, the number of registered recreational vehicle numbers grew at an estimated 3.8%. In the current year, the industry is forecast to grow 1.0%.

You would never know this by looking at the website of market player Jayco. It’s an age-friendly nightmare.

The importance of well-off older markets to industry performance was apparent during the global financial crisis. Although Australia never technically entered recession, stock markets performed poorly. Retirees and those on the cusp of retirement saw their superannuation accounts decline in value. Demand for industry products fell as consumers put off purchases of big ticket items.

However, the industry has returned to strength as demand for industry products returned to trend. In the five years through 2017-18, demographics are on the side of the industry, with retiring baby boomers expected to boost the numbers of grey nomads. Industry revenue is forecast to grow at an annualised 3.3% to reach $1.28 billion. The coming years are projected to be increasingly lucrative for the industry. Cost of inputs, such as iron and steel, should fall as demand for industry products increases.

Read more at Ibis World research.