III. Industry Analysis
Over the past five years, the RV Parks industry has experienced steady growth. The industry is primarily driven by travel-related trends because trips to campgrounds and RV parks are considered cost-efficient alternatives to traditional vacations. An increasing amount of time spent on leisure and travel has contributed to steady growth for industry operators. Furthermore, high employment and disposable income levels led to heightened levels of domestic travel during the five-year period.
Adults aged 50 and older comprise a key customer segment for the industry. This generation typically has more disposable income and leisure time available to spend on long vacations, which has benefited industry operators. The number of adults aged 50 and older has increased at an estimated annualized rate of 1.5%. However, younger generations are emerging as another key demographic, particularly millennials. This demographic shift will provide organic growth for industry operators moving forward.
Another promising trend is the potential for gas prices to remain low because RV and campground patrons are often required to travel to their destinations via automobile.