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Reported by Cassandra Kramer
RV Industry Struggles with Sales Due to Economy
The Recreation Vehicle Industry Association says sales of motor homes and travel trailers are down 17 percent from this time last year. (Photo: WBOC)
The Recreation Vehicle Industry Association says sales of motor homes and travel trailers are down 17 percent from this time last year. (Photo: WBOC)

08/13/2008 10:40 PM ET

SMYRNA, Del.- The RV industry is struggling with fewer sales, even though gas prices are starting to drop.

The Recreation Vehicle Industry Association says sales of motor homes and travel trailers are down 17 percent from this time last year.  Many people blame the price and call it a luxury item.

"New ones of course will probably be at the low to high $70,000 to the upper $200,000, all depending on if you want something as far as a life of luxury," said Ryan Horsey, V.P. of Fixed Operations at Parkview RV Center in Smyrna.

Since many people are pinching pennies these days, motor homes and travel trailers are items some people are not so sure about buying.  Some businesses say people are still interested.

"We're actually getting a bit more floor traffic through the dealership a lot more customers calling in," Horsey said. But that does not mean they are ready to pay up.

There are many strategies to help boost business.  One of them is lowering the price of the vehicles.  Parkview RV Center in Smyrna says it had to make several adjustments to help sales.

"We went ahead and cut back from having two stores where it's split traffic to having one store where it has all our inventory," Horsey explained.

The family-owned business says the changes have worked.  Employees say they are actually optimistic about sales for later this year.

Parkview RV says business is down about three percent.  But other big businesses like Lazydays RV, actually had to lay off about 15 percent of its workforce because of slow sales.

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