Mobile working is becoming increasingly common, especially when there are services that allow you to access mobile hotspots from cell towers or even satellite internet. For many millennials, this freedom is inspiring them to take their workstations away from the typical office cubicle and on to the road.
The majority of current RV owners are not planning to retire anytime soon. Many are looking for their next workstation in the idyllic woodlands, the breathtaking beaches, or even in different places near major cities every weekend. Millennials fall into this new “RV working category”—and according to the RV Industry Association, reports show an unprecedented 62% increase in RV ownership among young people in the last decade. The trend is less about the vehicle itself and more about what it represents: the freedom to go anywhere.
With over 493,000 new RV units produced in 2022 alone, the RV movement is making an impact. However, the technology required for luxury destinations is trailing, with only 15,000 new RV pads having been developed in the same period. This lack of infrastructure means that existing RV parks—which are, in many ways, products of their previous time periods—lack the amenities that are required for the new-age digital products and services that many people now use, such as high-speed internet and cell phone service.
These problems, which are growing exponentially obvious, are enough to impact remote work, which surged during the pandemic. Because of previous safety precautions, many are now working remotely—and doing it almost completely. As a result, luxury RV parks are offering spots not just to park, but a community that features everything a modern office and resort could offer, all set on the backdrop of nature’s many landscapes.
Modern luxury RV parks have reimagined the outdoor hospitality experience. Many are destinations in themselves, featuring amenities such as resort-style pools, gyms, co-working spaces, farm-to-table dining, and even wellness programs. These types of parks offer a lifestyle choice that seamlessly blends work, leisure, and community, which many millennials are taking advantage of.
RV destinations must be repositioned or built to cater to the luxury segment to maximize not just the impact they can create, but capitalize on the people who use them. Many destinations presently cater to mid-range and budget travelers, which leaves a gap in the luxury segment. By leveraging regulatory and marketing changes that offer short-term investment opportunities, higher returns can likely be expected. Along with this, RV destination owners can lower taxes and enhance their returns with strategic benefits, such as a 100% first-year bonus depreciation, and componentized asset deprecation.
Investors looking to break into the luxury RV market must consider several key factors, which include analyzing the demographic of RV enthusiasts, focusing on tourist locations, becoming aware of zoning laws and environmental regulations, and developing financial projections that will allow them to anticipate the seasonal and economic impacts of the business.
The gradual adjustment for many to mobile living is coming with its own perks as well as its own sets of problems. For RV owners, this can be both promising and frustrating. For investors, it appears this shift is an untapped mine they can jumpstart new business ventures within.
