For many years, recreational vans have always attracted many people who love exploring the great outdoors, most especially Americans. As a matter of fact, according to statistics, there is an estimated count of one million Americans living in RVs today.
Surprisingly, despite the pandemic, there is an increase in the demand for the said vehicle—pushing manufacturers to ramp up their RV production. With this rising demand, the RV industry is expanding, and its market revenue is expected to grow from 2019 through 2025.
These numbers mean profit opportunities for those wanting to start an RV business rental this 2021. RV rentals are an attractive option for those who wish to explore the outdoors but don’t want to or can’t own one.
Learn more about RV rental business and find out if this is the right fit for you.
Starting Capital
No beating around the bush—it will demand a higher starting capital, regardless of whether the business owner will acquire one or more vans. In addition to that, the business will have to get the necessary insurance, a website, and advertisement services to put your business out there. These all are non-negotiable investments, especially the insurance.
Furthermore, there will be recurring expenses to maintain the quality of the product and services the business is offering. RVs are no different from regular cars when it comes to engine maintenance. It will still need regular services like a tune-up, change oil, and the likes. However, since RVs are like apartments on a wheel, it will require home-like maintenance like securing loose furniture, checking awnings and sliding windows, cleaning showers, etc.
The Target Customers
There will be solo adventurers, couples, and families with pets—basically, anyone who loves to explore the outdoors across the country.
There will be a family of six that needs a larger van like Class A Campers; there will be a solo traveler who will need a smaller one like Class B Motor Homes. Then there will be travelers who would want to bring their big toys with them like motorcycles. This particular condition will require a toy hauler RV.
Different types of customers mean different kinds of needs. This is why it pays for a rental business to provide various RV options.
How to Charge Customers
The price will alter depending on the type, size, and age of the RV. But to have an idea, here is a pricing estimation:
Travel Trailer
Older unit – $50 to $125 per day
Newer unit – $125 to $200 per day
Fifth Wheel
Older unit – $60 to $150 per day
Newer unit – $150 to $300 per day
Toy Hauler
Older unit – $100 to $200 per day
Newer unit – $200 to $300 per day
Class C
Older unit – $150 to $200 per day
Newer unit – $150 to $300 per day
Class B
Older unit – $100 to $200 per day
Newer unit – $200 to $350 per day
Class A
Older unit – $175 to $275 per day
Newer unit – $350 to $450 per day
This is for the daily rate. Weekly and monthly rates must be taken into account as well.
Finally, keep in mind that the pricing should consider the season and the business region.
How Profitable is the RV Rental Business
With over 40 million Americans who travel on RVs regularly, it is clearly profitable. How the business will make satisfying profits is all up to its business owner.
It may be hard to provide an exact number, but with the right business strategy—by looking at the numbers—there is a higher chance for an RV rental business to take off.
Operating an RV Rental Business Without Owning a Single RV
Is this possible? The short answer is yes. They may launch with the help of a pool rental system. Here is how it works. RV owners allow the business owner to rent out their units to their customers. And in return, the business owner will have to pay a portion of the rental profit to the RV owner. Other agreements such as insurance and maintenance will be up to the discretion of both parties.
Traveling in RV is a unique opportunity for Americans to travel across the whole country and see what it has to offer without sacrificing the convenience of a home. When exploring the outdoors in a recreational van, they aren’t leaving home; they are taking it with them anywhere they go. RV rental business providers can take pride in being a part of such a spectacular experience for every client.
