IDS: Driving Rv Industry Forward

Consumers increasingly choose affordable trailers, fifth wheels, and camper trailers over motorhomes, with bunk models becoming more popular. Dealers must consider this preference for simplicity over luxury when planning for the upcoming year.

Fremont, CA: IDS's annual RV Dealership Industry Trends Report predicts that technology and personalization will drive business growth in 2024, according to the provider's Dealer Management Software (DMS). The report provides insights for dealers to focus on in the upcoming year. Here are five key trends from the report that you should consider when creating your 2024 business plan.

 Aggressive Interest Rate Hikes Will Impact Consumer Behavior

Interest hikes in 2024 are seen as an attempt to control inflation and stabilize the economy. A survey by IDS found that 60% of customers anticipate rising product prices as the biggest challenge in 2024. This means higher financing costs for dealers, particularly those considering loans or credit purchases for RVs. Dealers can work with lending institutions to design flexible, in-house, long-term loans or balloon payments.

Cybersecurity is Essential to Maintaining Consumer Trust

Cybersecurity is critical for businesses, as cyberattacks can be exploited easily. Dealers should switch to cloud servers for secure digital storage. Cloud hosting provides dealers with a remote, safe environment to store their data, demonstrating their commitment to customer security. This flexibility allows for agile operations and enhanced overall security in dealerships.

Mobile Experience Is Now Mandatory

Dealerships should optimize their mobile experience to cater to consumers' expectations of a seamless buying experience. This includes offering online bookings, digital payments, and personalized post-purchase interactions. It's crucial for dealerships to ensure their website loads quickly, displays correctly, and provides a smooth user experience on mobile devices.

Fewer Units on the Market Mean More Aging Inventory

The RV market is entering a normalized production phase, with over 250k fewer units available due to varying market conditions and excess inventory. Manufacturers have extended the '22 model year, causing dealers to host three different model years simultaneously. This presents challenges in moving these units. Consumers are increasingly choosing affordable trailers, fifth wheels, and camper trailers over motorhomes, with bunk models becoming more popular. Dealers must consider this preference for simplicity over luxury when planning for the upcoming year.

Reactive Selling vs. Proactive Selling is in

Customers seek a holistic purchasing experience, including accessories, not just a vehicle. Sales teams should suggest valuable additions to enhance the experience. Dealers can benefit from having a comprehensive inventory for minor unit updates or significant overhauls, expanding their parts and service departments to support this. This will help dealers provide a more satisfying customer experience.