Hopes rise for Big Lap revival
Cross-border RV travel could be back on as early as JulyCOMMENT
Many would-be AustraIian RV travellers are getting excited by the glimmer of light at the end of lockdown.
In less than two months if we obey all the social distancing rules, we should be able to travel between most states in Australia (WA has yet to commit a date), meaning we should be preparing our existing caravans or camper trailers, or dusting off plans to purchase new ones.
If the latter, what should you buy and from whom? Understandably, the COVID-19 shutdown has brought many Australian manufacturers and dealers to their knees, some sadly never to recover.
The golden rule that applies in most cases is to buy a reputable brand from a dealer with a long-standing association with it. The shorthand here is to deal with people who have the biggest reputations to lose.
Underlining this advice, is that some potential buyers may have spent much of their RV savings just keeping their lives and families afloat, while everyone will be more cautious now given the uncertainty of a long-term virus recovery.
The industry is well aware of this, so now is the time to grab an RV bargain before the ‘go-travel’ lights change to ‘green’.
All Australian businesses that survive are facing some uncertainty in relation to demand – if or when it returns and in what manner? Will the customers trickle in, or will they experience a flood that they will struggle to meet as the ‘tap’ suddenly turns on?
This uncertainty is making it difficult for local makers to manage supply and manufacturing with confidence, especially since the RV market was rapidly forced into its hiatus during what was normally its most active time of the year.
The Caravan Industry Association is guessing that many Australians who were planning overseas holidays and cruises will now choose to holiday in Australia, as was the case back in 2001 after the 9/11 attacks. The Outback road trip remains a bucket list item for many and true remote area equipment is still highly prized among those seeking roads less travelled.
Many local manufacturers have simply shut their doors, but Melbourne’s Track, for example, is in an unusual position, having just purchased the long-standing off-road brands Trakmaster caravans and Pioneer camper trailers on the eve of the Coronavirus epidemic.
However, rather than being weighed down by debt and cash-strapped by Coronavirus, Track like many other long-established brands expects to recover strongly. This is due in part to having a decent order bank of custom-built units and because of its product supply chain and plan, rolled out through a National Dealer Network.
Because Track builds to order and provides dealerships with specced-up stock units, buyers can choose to prepare for travelling freedom by ordering custom-built, or choosing to take delivery, straight off the showroom floor.
This business model is not uncommon among conventional caravan manufacturers and allows for a more progressive ‘turning on’ of the tap. However, it differs from many of Track's Australian-made camper trailer/caravan rivals who opt not to use dealerships, such as Evernew, Kedron and Complete Campsite.
Track argues that having dealerships is a positive for its customers, giving access to local service and warranty, while also promoting confidence, as customers can buy the actual unit they see at their local representative.
We believe any business that relies solely on trade shows and factory outlets for distribution will likely have a tougher time re-starting after the coronavirus restrictions are lifted, due to low consumer confidence and an inability to see the finished product in a professional environment.
An additional issue here is that trade shows may be drastically altered, or scaled back when they're allowed to resume operation.
Not that Track hasn’t been bruised by the pandemic. Director Gerard Waldron said while the company had seen its worst April since the 2008 GFC, it had seen an immediate spike in consumer confidence with the easing of travel restrictions in some states. This had allowed it to return to its new order budget forecast by the second week of May, due mostly to sales of floor stock.
Track has also embarked simultaneously on a retail offensive, recently appointing The Dirt Off Road Campers in Mount Barker, South Australia to handle its expanded Track, Trakmaster and Pioneer model ranges.
Track has also decided to extend its limited edition Inspire and Zenith Tvan models until the end of this year, and is also planning the roll out of new Trakmaster and Pioneer models by this time next year, with the development of these models not pausing during this pandemic as Track's factory has remained open with reduced staff.
Lloyd Waldron is marketing manager at Melbourne-based Track and the son of Track Trailer founder and director Gerard Waldron.
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