New caravan prices expected to rise

Like in other parts of Australia, caravan sales have surged in Queensland during COVID-19 restrictions, with orders in many cases stretching well into 2021. This contrasts with the retail gloom that has been experienced by the southern states, particularly Victoria, with the demand for used RVs in recent months outstripping new, as component shortages limit supply.

The bad news is some industry pundits are predicting new caravan prices are set to rise next year in line with reduced supply, with a hike of at least 10 per cent tipped across the board.

This will come despite predictions that the overall Australian RV market will expand further in the months ahead, as would-be overseas travellers continue to divert their money into local travel experiences.

Like real estate in a booming market, impatience could also contribute to higher prices.

“Many of these people have never previously considered caravanning,” said Brisbane RV director, Steve Tauzowski, “but they had set aside the time, money and expectation to travel overseas and they don’t want to miss out on a promised travel experience. Now that they have decided to go caravanning instead, they want it now.”

Longer wait for new caravans

One of the frustrations many would-be local travellers have to face is a long wait for a new caravan, as shortages of some components from overseas suppliers and tighter manufacturing budgets have blown out delivery times to up to 12 months for some low-volume brands and bespoke models.

This demand, along with the flow-on effect of component price rises, will see a price surge in new, Australian-built caravans and camper trailers for those prepared to delay their travels until late 2021. However, with new stocks currently low, those more impatient are often buying late model used stock instead.

Sunseeker RV founder Chris Michel  said the demand for new caravans “has gone berserk” and this was born out by the large crowd that attended last weekend’s Sunshine Coast Expo at Kawana. Buoyed by the positive RV environment, Sunseeker has formed a partnership with a boutique Queensland manufacturer and will soon launch a new premium hybrid range to add to its existing Sunseeker and Marvel caravan ranges.

“This is not the sort of thing you do in a falling market,” he said. “We sold seven caravans at the Expo in three days and we did 20 caravans out of the yard and the show combined in a week.”

Steve Tauzowski said Brisbane RV had done “very good numbers” at the Kawana show. “Overall, interest was stronger than normal,” he said. “Everyone is looking for good news and travel is something to look forward to. We believe 2021 will be a good year if we can get stock.”

Component suppliers feel the pinch

Chris McClellan,, Director of lithium battery specialist Enerdrive, said for all its pain, 2020 will be remembered as the driver of a ‘lifestyle’ year that could result in record RV industry sales in 2021, particularly in Queensland.

“The lithium battery market has been going through the roof, both for manufacturing and the RV DIY market,” he said. “The ute canopy segment has been particularly strong for us.”

McClellan said by January, the industry as a whole would be supply-driven, with stocks of some RV components by major suppliers currently being reserved for major manufacturers once the caravan industry gets back fully in business.

“Never before have I, nor any of my team, experienced such a rapid shift in market growth,” he said. “It’s an exciting time for the entire industry!”

Steve Punton, the joint director of Rhinomax Campers on the Sunshine Coast, said the company was sold out of build slots for its hybrid and full-height off-road caravans until mid-2021.

“What’s interesting, is that we’ve achieved this largely without the Victorian and West Australian markets, which historically have been good for us, so demand would actually be well up if you added them in,” he said. “If Victoria had been back online, we would have expected to see 2021 fully booked out.”

Punton said the other thing he and his business partner Andy Dean had seen was greater interest in the top end of the off-road market.

“With the latest third and fourth waves of the COVID pandemic being seen overseas and normal tourist travel from Australia not expected to resume until 2022, we expect this market focus to continue for at least the next 12 months,” he said.

“However the cost of manufacturing today is more expensive than pre-COVID. For one thing, we have had to pre-purchase materials and components to keep us going and these costs have to be recovered, so I think you can expect to see price increases right across the industry.”

RV market bounces back

Caloundra’s Australian Off Road has reported solid interest in its new Sierra box campers, with General Manger Russell Evans saying that a total of around 40 units had currently been completed.

He said despite the general industry slowdown in the early months of the Coronavirus pandemic, the market had bounced back, with  sales in some cases coming at the expense of other manufacturers that had failed in the tighter trading conditions.

“In some models, like the tandem axle Aurora, our delivery dates stretch out to 2022,” Evans said, “while on most other models it is June next year”.

Other key facts that have allowed the Queensland RV market to prosper during COVID restrictions include:

• Most of the 1727 million square kilometres of Queensland except Aboriginal land, from the Outback to the Tropics, has remained opened during 2020 for locals to explore. This contrasts with the often harsh travel restrictions over the past six months of Australia’s largest caravan-building state – Victoria.

• Deferred overseas travel and cruises has increased demand for off-road and ‘Expedition’ caravans and motorhomes – something Queenslanders are very good at, with many of Australia’s best-known off-road brands, located on the Sunshine Coast, while some of the top camper-trailer builders are on the Gold Coast;

• Many Australians have brought forward planned ‘retirement’ or ‘last holiday with the kids’ travel given school and business closures;

• Despite reduced local demand in Victoria, many manufacturers with interstate agents have still been able to move stock at good retail prices. A growth area for some Queensland dealers is to have reputable Campbellfield, Victoria caravan manufacturers build bespoke dealer-branded vans specifically for them. For example, Titanium builds Sunseeker caravans for Caloundra’s Sunseeker, while Safari builds Fortitude vans for Burpengary’s Brisbane RV;

• Anecdotally, Queensland buyers have been prepared to spend more on COVID-era caravans than those in the past, happily ticking more extra-cost option boxes than before, particularly older buyers who were expecting to cruise or holiday overseas, while younger buyers are using the spending power of their superannuation, or their double incomes, to experience the travel experience before kids.

So, as Enerdrive’s Chris McClellan put it:

“Get out there and buy your first hybrid camper; perhaps upgrade your caravan to that model you’ve always wanted; buy that boat or whatever it is you’ve held off from doing. Whatever it is, just work out how to break free, escape from the past and live your life in style!”

Related reading:

Caravan sales boom in the West

Rise of the off-road, off-grid caravan

Caravan buyers seek bathroom bliss