PKF Study: RV Trips Cost Less For Consumers

RV Business

Thursday, July 10, 2008

Despite record-breaking fuel prices, typical RV trips remain the least expensive
type of vacation, according to a new study comparing vacation cost.  According
to a press release, PKF Consulting found that “typical RV family vacations are
on average 27% to 61% less expensive than other types of vacations studied.”

Even factoring in RV ownership and fuel costs, the study reveals that RV family vacations tend to be significantly less expensive than other types of vacations.

“This study re-affirms what RVers have long known, that RV vacations deliver greater economic value compared to other types
of vacations,” said Richard Coon, president of the Recreation Vehicle Industry Association (RVIA). “RV vacations continue to be
the most affordable way for a family to travel because of the tremendous savings on air, hotel and restaurant costs. And these
savings offset the cost of fuel.”

PKF analyzed major costs that would be incurred by a family of four taking eight different types of vacations for three, seven, 10 or 14 days to such popular travel destinations as the Grand Canyon, Cape Cod, and Napa, Calif.

“On average, RV vacations were more economical than the other types analyzed in all but one case,” says Kannan Sankaran, PKF’s lead researcher for the study. “Even as fuel prices increase, our findings show that almost all RV vacations are still significantly less expensive than non-RV ones.”

Fuel prices would have to more than double for typical motorhome vacations to become more expensive than other forms of travel, according to PKF Consulting. The study also shows that fuel costs would have to more than triple for trips in lightweight

travel trailers or folding camping trailers to be more expensive than the least expensive non-RV vacation. Almost 80% of the RV market consists of towable RVs, including lightweight units which can be towed by car, van or pickup.

Among the RV vacations analyzed by PKF, even those taken in an ultra-luxury Type A diesel motorhome were less expensive than flying and staying in a hotel. Only a family taking a vacation by personal car with hotel or renting a condo and cooking for themselves would cost less than a family taking a trip in a Type A motorhome. “Owners say the added space, comfort and convenience while traveling justify the investment in a Type A,” noted Coon.

In addition to major expenditures required from the start to finish of each vacation, PKF factored in an estimated cost of ownership of the RVs analyzed: a folding camping trailer, conventional travel trailer, and Type C and Type A motorhomes.

Research included documenting average ownership periods, residual values, annual days of use, insurance and applicable interest deductions.