Market Trends of Australia Recreational Vehicle Rental Industry
Rising Tourism Activity Drive Demand in the Market
- Campervans have several advantages, such as compact size and luxurious look. Consumers' inclination toward campervans is increasing day by day, especially the youth, as campervans pack many amenities in their compact footprint. With growing consumer interest in recreational activities and a rise in first-time buyers, the market is expected to witness positive growth over the forecast period.
- Electrification has also paved its way in the motor home due to advancements in battery and electric drive technologies. Many conventional motor home manufacturers are now developing electric motor homes and launching new electric models of motor homes.
- Furthermore, there has been a growth in the travel and tourist business in Australia, which is predicted to fuel the country's recreational vehicle (RV) rental market. Regional locations received 44 cents of every tourist dollar spent, and tourism was Australia's fourth largest exporting business, contributing 8.2 percent of total export revenues.
- Following the recent worldwide disruption caused by the pandemic, international tourism is beginning to rebound. THRIVE 2030, Australia's long-term national strategy for the tourist economy, outlines the country's ambition to recover to pre-pandemic visitor expenditure of AUD 166 billion (USD 119.52 bullion) by 2024 and increase it to AUD 230 billion (USD 319.44 billion) by 2030.
- With a new AUD 48 million (USD 34.56 million) tourism and travel package announced in the October 2022 Budget, Australia's political stability and resilient economy offer prospective businesses and investors a safe and low-risk business environment.
- More than 1.4 billion international travelers visit the world each year, spending USD 1.5 trillion. Australians are avid travelers who like exploring their own country. Domestic demand increased throughout the pandemic, and overnight and day trip expenditures by domestic visitors surpassed pre-pandemic levels in 2022.
- Australians account for almost three-quarters of overall tourism spending in a normal year. On average, Australians take more than five domestic overnight journeys every year. When compared to pre-pandemic levels, spending on domestic overnight trips climbed by 33% to AUD 27.8 billion (USD 20.06 million) in the September quarter of 2022. Annual domestic overnight travel and day trip spending are predicted to reach AUD 137.9 billion (US 99.17 billion) and AUD 41.1 billion (USD 29.60), respectively, by 2027.
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Increasing Online Rental Service and Growing Registration of RV in the Market
- The growing demand for online rental services was mainly contributed by the presence of active commuters who travel short distances. Further, the increasing demand for road trips as a getaway from quarantine may also boost the growth. The post-lockdown period is likely to witness a rise in the number of first-time buyers with significant contributions from the digitalization of services.
- Renting a recreational vehicle (RV) in good condition with desired features at a low cost is the most preferred choice of many customers. The facility of comparing various RV rental prices offered in an area has always been a growing concern among the majority of customers. Thus, to help customers regarding the availability of RV rentals in an area, online platforms like RVshare.com and Outdoorsy have been widely operating in the market. The above platforms provide a one-stop shop for customers who are looking for RV rentals.
- Local travel and outstation rental services are expected to witness substantial growth over the next few years due to the lack of route flexibility and standard timings of public transport services. This created a platform for developing online booking services for people due to the shifting preference of travelers toward online car rental services for day-to-day travel, majorly propelling the market. In addition, industry players are also focusing on developing the option of choosing vehicles as per customer convenience through various online platforms during the pandemic.
- Further, campervans and motorhomes have been steadily on the rise over recent years due to their easily customizable nature. This includes lightweight televisions and monitors that have been placed almost anywhere in the camper van cabin. Refrigeration and battery technology have also improved greatly, allowing campers to ditch bulky and dangerous propane systems in favor of more living space.
- Due to the above-mentioned factors, the Australian recreational vehicle rental market is expected to grow in the forecast period.
