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Monday, June 14, 2004

RVers motor through gas price crisis



By JOHN STEARNS
The Arizona Republic

Soaring gas prices might shorten some recreational vehicle trips this summer, but the prospects of pump pain don't seem to be stalling most RV travel plans or sales.

"It's going to stop us from going far, (but) it won't stop us from going up to the Rim (of the Grand Canyon) and around the state, which we normally do at this time of year anyway," said Suzi Holden, of Phoenix. She and husband, Wes, plan to tour in their 30-foot fifth-wheel travel trailer.

Jan Smith of Mesa, Ariz., however, says she and her husband, Russ, can't afford to drive their 34-foot Gulf Stream motor home to Reno, Nev., for a bowling tournament because of high fuel prices.

"It would cost over $1,000 to go to Reno and back in the motor home," she said.

These couples - like many young, old and in between - enjoy the open road, exploration and comforts of home that include the kitchen sink. They're part of a large and growing pool of RV owners and renters that the Reston, Va.-based Recreation Vehicle Industry Association pegs at 30 million.

The outlook is for continued growth because of retiring baby boomers with disposable income; more people valuing family time together after the Sept. 11, 2001, terrorist attacks; and trends toward shorter, more frequent, vacations.

One in six U.S. households intends to buy an RV in the future, according to a 2001 University of Michigan study that the RV association cites.

A confluence of factors has "played into the whole RV industry's hands," said Randall Smalley, chairman and CEO of Cruise America Inc., the country's largest RV rental company, based in Mesa.

The company experiences both sides of the business: rental and sales. It cycles new motor homes into its rental lineup, selling used rigs after about three summer seasons and 70,000 miles.

"I think it's (the RV industry) in its renaissance period," said Robert Smalley Jr., Cruise America's president and Randall's brother.

Part of that comes from the return of European travelers, a valuable segment of long-term renters that had slumped the past couple of years. Europeans rent for an average of 19 days, domestic customers about nine.

"It's back in balance. We're doing very well," said Bob Caldarone, assistant vice president of marketing and development for Cruise America.

The rising RV tide is floating smaller boats, too. David Baroldy of Antlers R.V. in Phoenix, which sells folding camper and travel trailers, said he is as busy as he has been in his six years in the business. While customers are complaining about fuel prices, they continue to travel.

Cruise America is softening the gas hit by offering a rebate of 5 cents per mile driven, which could go to 6 cents next week, based on current average fuel prices, Caldarone said. But price isn't so much a factor as supply. As long as gas is available, people are continuing to travel.

Sherry and Kevin Klosterman, farmers from Mooreton, N.D., visit Phoenix each fall for its NASCAR race, renting a trackside motor home from Cruise America. They don't care how high gas prices are, because they never drive it.

"We just pull up to the track and the motor home is sitting right there," Sherry said. "It's more safe and it's more fun (than a motel). You don't have to worry about getting back to your motel."




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