The Current Situation and Future of China's RV Tourism Market

The Current Situation and Future Exploration of China's RV Tourism Market ——Interview with William E, RV Project Manager of Yutong Bus Co., Ltd. Horvath

At present, there are still many unknowns and confusions in China's RV industry. Many people in China believe that the Chinese RV market is determined by the number of people who can afford RVs. Of course, this is a very wrong view. As far as I know, the country's RV market is determined by the lifestyle that RV owners want, not by the wealth level of these people.

Whether it is the owner of the RV in the United States or the owner of the caravan in Europe or Italy, their respective RV industry is determined by the country’s middle class. The characteristics shared by these people are the desire for travel, the desire to browse the landscape of the motherland, and the availability of time. They love the outdoors and like to make new friends. They admire the beautiful natural landscapes around the country.

So when others asked me what the future of China's RV industry was, I would say without hesitation: "I don't know, nobody knows." In my opinion, this issue should be answered by the recently established China RV Camping Alliance (RVCA). However, it takes months of investigation and study to answer this question. Will this market prospect be very broad? meeting! Will this market be great? It takes time to answer. I don’t know much about Chinese culture, so I don’t know how those people who have sufficient economic conditions but don’t buy RVs will use their money. If the government does not strengthen the rules for driving and getting on the road, the industry will continue to be subject to relevant restrictions.

The elements used to define RV owners are:

1. The desire and appreciation of this lifestyle;

2. Purchase and use of RV products for financial assistance;

3. Have enough leisure time to enjoy travel and camping.

Let me explain below the series of concepts just mentioned. What is a RV lifestyle? It includes many elements that are different for different people, but in general it stands for - hoping to explore the vast outdoors; throwing life and work in a hurry to the outside world; enjoying time with family and friends; enjoying Freedom and independence to go where you want to go; make new friends.

With regard to the “financial assistance channels”, the cost of owning and using RVs far exceeds the price of car purchases. U.S. agencies have conducted relevant investigations and studies and compared various vacation methods. Research shows that RV travel is the best and lowest cost way for family of four vacations. In addition to the purchase of a car, living expenses for RVs also include expenses on loan interest, insurance costs, taxes, maintenance, seasonal storage, campsite or park expenses, vehicle fuel consumption, and necessary ancillary equipment.

What does "leisure time" mean? Leisure time includes: long vacation time, vacation time, weekends and leisure time after retirement. In general, the amount of leisure time determines the best form, length, and value of people who can live from their respective RVs. People in Europe and Australia travel far more frequently and more often than Americans because they enjoy more leisure time. Most Americans will choose campsites not more than 150 miles from home as a quarterly resort, while others will travel from one park (campsite) to another (park) campsite. Americans have the least amount of vacation during the year, so most of them like to spend weekends close to home. This period is concentrated from mid-April to the end of October, and most of the RVs they use are trailers, not self-propelled ones.

In the United States, trailer-style RVs account for more than 85% of the entire RV market. 60% of the vehicles in the European RV market are trailer-type RVs. In Australia, it is 90%. What kind of China will be? Now everyone says bad.

Therefore, it is very difficult to get back to China's RV market. We need more data to predict the size of this market. We need to negotiate with existing dealers and camp owners to seek more data; we need to communicate with existing RV owners; we need to discuss this issue with Chinese consumers at the RV show.

To promote the development of China's RV market, complete, standardized and fully functional parking spaces for RVs, resorts, and campgrounds are indispensable. These venues designed for RVs need swimming pools, tennis courts, basketball courts, children's playgrounds, general stores, and central health buildings. The campsites are best located near local attractions and are easily accessible. The campsite should have a neat environment and provide a full-featured interface. Individual camp sites also need to have easy access to the terrace area and have certain defensiveness against floods. The camping community needs plenty of recreational activities, especially children.

The China RV Industry Association once again needs to cooperate with the Chinese government to find a suitable location, design and plan the design of the site together, and also formulate industry facilities standards. Once campgrounds and other buildings are built, Chinese RV owners can use RVs for entertainment. There are more than 12,000 campsites in the United States and Canada. It is conceivable that there will be many campsites in China!

At the same time, dealers are also very important for the development of this industry, where people can successfully purchase RVs and related products. These stores should be located in major cities, with a variety of product types, a variety of camping equipment, supplies, staff can show people all the product features, can quickly provide customers with vehicles, supplies. The China RV Industry Team should provide these companies with detailed and personalized service.

In the United States, annual sales of RVs peaked in 2006, and new cars sold more than 360,000 vehicles. Last year (2009), the sales of new RVs decreased to 167,000. The current impression given to people in 2010 is that things have improved, with about 230,000 new car sales, of which 11% are self-propelled RVs. Australia will have a new record in 2010 and it is expected that the sales of new RVs will exceed 24,000 (of which 10% are self-propelled). There will also be some growth in the European RV market. In 2010, the sales of new cars will reach 170,000 vehicles, and more than 50% will be self-propelled RVs. We need to conduct a series of studies to figure out why the sales of European self-propelled RVs will exceed that of trailers.