Gas prices have RV-based businesses tightening their belt
Wayne Kellett is a modern-day gypsy. As a contract aircraft mechanic, he travels from city to city living out of his 37-foot Allegro Bay motor home.
For the past three months he has stayed at the Blasi Campgrounds in west Wichita while working for Hawker Beechcraft.
He would rather travel and meet new people instead of settling in one place. But high gas prices are forcing him to reconsider.
"I may get out of the business," he said.
It once cost him $100 to fill up the motor home. Now it's $240. And it's crimping the sightseeing he enjoys.
High fuel prices, a slowing economy and declining personal wealth as home values fall are hurting recreational vehicle sales.
Motor home sales were down 26 percent in the first four months of 2008 compared to last year, while sales of towable RVs were down 17 percent, according to Grand Rapids, Mich.-based Statistical Surveys, a provider of market data to the RV industry.
Strong local sales
In the Wichita area, the trend is muted by the strong economy and stable home prices.
The sales of towables -- which includes fifth wheels and trailers -- in Kansas is down about 6 percent, said Scott Stropkai, national RV sales manager for Statistical Surveys.
The sale of motor homes in Kansas was up 17 percent, although the actual numbers weren't that large.
"Wow, that's great," said a surprised Stropkai.
Sales at Wichita area RV dealers are a little soft in some categories, dealers say.
Sales of new motor homes have slowed a bit, they said, but sales of towables and used motor homes are still strong, said Doug Williams, owner of Adventure RV and Truck Center in west Wichita.
"I'm not going to tell you it's in the dumps," he said, "because it's not."
That's despite continued bad news for RV manufacturers.
Bob Olson, chief executive of Winnebago Industries, told analysts on Friday that his competitors are cutting prices on motor homes, pushing Winnebago to do likewise. His company's third-quarter profits fell 73 percent.
"If we don't do something to try and stimulate the market we could get left in the dust," Olson said.
RVs: the bargain ride
What makes the picture for RVs complex is that they often are a discretionary buy.
Some RVs are bought by retirees with free time and a hankering to see America, or by families who like to camp in style. Those groups can always put off a purchase until next year or park the one they have and stay home until gas prices settle down.
It's the disappearance of many of these discretionary buyers that is hurting the industry, Stropkai said.
But there also are many who view RVs as a low-cost alternative to hotels. They have little choice but to buy or keep driving their recreational vehicles.
At the Blasi Campgrounds last week, more than half of the RVs are owned by people who use them for business purposes, said manager Mary Westbrook.
It costs $367 to $397 a month to stay at Blasi vs. $50 to $80 per night for a hotel, not including eating out.
One of those business users is Kris Van Zandt. He owns Power Systems Diagnostics, a contractor that maintains and repairs high-voltage power equipment.
Although he has a home and family in Topeka, he lives in a fifth-wheel during the work week 11 months out of the year.
Some of his employees were also staying at the Blasi Campgrounds in a second RV. They towed cars or trucks for use while here. Sometimes they're here, but other times they're in Iowa or elsewhere.
"This is about as cheap as we can get it," Van Zandt said.
Given his setup, he basically has to eat the increase in gas prices, he sighed.
Another park resident, a woman who asked not to be named, was doing laundry at the campground's laundry room. She was staying in the family RV while her husband was in the hospital for several weeks.
The woman, who is not from the Wichita area, figures she's saving more than $1,000 by living out of the RV.
High gas prices mean the people who use their RVs for fun aren't using them as much, she said. But, for the rest of the RV community, she uttered a plea:
"Attention George W. Bush," she said. "Please lower the oil prices."
