RV Shows Hit Big Bumps in the Road

With the economy continuing to swirl downward and the American auto industry in the midst of a massive federal bailout, one of the hardest hit sectors of the tradeshow industry has been recreational vehicles.

As a result, and with the added negative factor of last summer's inflated gas prices, RV shows have had declining numbers nearly across the board, and this year isn't looking all that much better.

Even so, those in the know realize that although recessions occur, consumers still desire recreation.

“The RV industry has been through this gas thing before,” said Tom Gaither, senior vice president of Affinity Events, producers of 21 RV shows, including its largest, the Minneapolis/St. Paul RV, Vacation & Camping Show, scheduled Feb. 5-8 at the Minneapolis Convention Center. “RVers will still RV because it's a cheaper way to vacation. ... It's just a whole way of life.”

That may be, but the economy is changing the way people live it. According to Gaither, all of his RV shows are down between 30 percent and 40 percent.

“The economy has affected our business as it has affected others. ... I don't care if it's Southwest Airlines or Boeing, ... everything is down 30 (percent) or 40 percent, so we're in that same economy,” Gaither said. “We're feeling the same crunch out there that everybody else is feeling right now.”

Other RV shows are being hit just as hard.

Courtney Robey, public relations manager for the Recreational Vehicle Industry Assn., said its show, the Annual Natl. RV Trade Show, No. 13 on the most recent TSW 200 and held Dec. 2-4 at the Kentucky Exposition Center in Louisville, Ky., had a total attendance of 8,427 RV dealers, warehouse distributors, accessory store owners, campground operators and exhibitors at last year's show, a 38.5-percent drop from 2007. She said the 2008 show also had 1,387 dealership representatives, a 20-percent decline compared with 2007.

“Just like other sectors of the economy, including real estate, tighter credit is causing RV buyers to delay purchases and RV dealers to keep inventories low,” Robey added.

And even though the Natl. RV Trade Show decreased in exhibiting manufacturers, suppliers and showfloor space, dropping from 436 exhibitors and 924,353 net square feet in '07 to 402 exhibitors and 892,841 net sq. ft. in '08, Robey said she is positive there will be a turnaround.

“We're confident that when the economy improves, credit markets stabilize and consumer confidence is restored, the RV industry will rebound stronger than ever,” she added. “In fact, an increase in RV sales has been a key sign of a recovering economy in previous financial downturns.”

Heather Leach, marketing and education director for the Pennsylvania Recreation Vehicle and Camping Assn., producers of the Pennsylvania RV & Camping Show, No. 11 on the most recent TSW 200, had similar sentiments. The event's showfloor dropped from 981,390 net sq. ft. in 2007 to 901,291 net sq. ft. in 2008, but the number of exhibiting companies grew to 214 from 199.

And, Leach said, the showfloor will remain the same size at this year's show, scheduled Sept. 14-20 at the Hershey Park Entertainment Complex at Giant Center in Hershey, Pa., because organizers already have a contract for the same amount of space.

“The RV industry has slowed due to the economy and the (in)ability to receive financing,” Leach said. “However, it is usually one of the first industries to be hit during bad economic times and one of the first to come out on the other side. Everyone is trying to stay optimistic.”

And, she added, despite the bleak economic outlook for this year, there are some reasons to remain positive.

“Sales are down, specifically in motorized units,” Leach said. “However, more people are steering toward lightweight towable units due to their green nature.”

One show that is bucking the downward trend is the Halifax RV Show. This year's show, scheduled Jan. 29-Feb. 1 at Halifax, Nova Scotia's Exhibition Park, is sold out, said Denise Miller, publicist for Master Promotions, the show's event management company. The show will use all of its 150,000 net sq. ft. for its 50 exhibitors and more than 8,000 attendees, and this year's numbers, she added, are on par with last year's.

“Even in a downturn or recession,” Miller said, “industries still need to advertise their product. This event allows visitors to come and view all types of RV products, all under one roof. ... Therefore, it's both economical (and) time efficient for the buyer.”

And, added Scott Sprague, recreational portfolio show manager for Master Promotions, more than the economy, the Canadian show has unpredictable Atlantic Canada winter weather to worry about, although traditionally, he said, that has not had much impact.

“Even during these economic slowdowns, Canadians, and specifically Atlantic Canadians, are looking for affordable, family adventures, and RVing is the most obvious choice,” Sprague said.