糖心Vlog

An 82% drop in overall sales followed by a rapid recovery is the kind of business success story that only makes sense during a global pandemic. This remarkable rebound happened in the recreational vehicle (RV) industry, which according to the RV Industry Association (RVIA) faced that dramatic drop in April of 2020, right in the middle of what is usually the busy Spring sales season.

Recovery began quickly, and by June of that year, RV shipments reached the highest monthly total since October of 2018, according to from the association. One year later, in June 2021, total RV shipments set another record, ending the month with 50,706 units, an increase of 25.3% compared to the 40,462 units shipped during June 2020, the association .

An RV is the ultimate social distancing vacation. It does not require co-mingling with strangers, can easily accommodate families, and taps into outdoor activities. New consumer interest in those benefits, along with pent-up demand from the 2020 Spring season, is driving this lasting growth opportunity.

RVing is a beloved American getaway

With our vast natural resources, majestic national and state parks, and interstate highway system, RVs have always been a great match for Americans’ desire to both get outdoors and retain the comfort and convenience of home. The first motor homes ever produced were bolted onto automobiles or hitched. In 1915, wealthy motor-bus company owner Roland Conklin modified a bus into his unique, fully furnished, double-deck 鈥淕ypsy Van.鈥� The drive from Conklin’s home in New York across the country to San Francisco created much fanfare and excitement, leaving many people unsure what to make of the vehicle. The New York Times published several articles about the Conklins鈥� bus, calling it a 鈥渟ublimated English caravan, land-yacht, or what you will,鈥� with 鈥渁ll the conveniences of a country house, plus the advantages of unrestricted mobility and independence of schedule.鈥�

After wide publicity of that style of travel, perhaps it was inevitable that the RV became ubiquitous on our highways.

While part of the appeal of camping is to 鈥渞ough it,鈥� the RV experience has long been supported by wave after wave of new technology.  Everything from survival gear to weather-resistant apparel to roaming satellite service has evolved along with the motorhome鈥檚 vehicle sophistication and ease of handling.

During the pandemic, many people wanted to get outdoors, travel, and explore, but to do so without interacting with other people, using public transportation or staying at hotels. Travel abroad and by air were restricted, limiting travel to what could be done on the road, in-country. All that was needed was some way to get there.

And thus, the 2021 scramble to purchase an RV was born.

New interest from new audiences driving RV transport growth

The RV sales boom has been a boon for manufacturers, who are still struggling to keep up with demand. RV fleet managers and carriers have also felt the impact of this recent increase in interest in RV travel.  Since the RV shipping business is a mix of both drive-away (one-way transport with the driver returning via a different vehicle or public transportation) and driver-owned trucking, there鈥檚 been an increased need for a fleet card management solution to support that complexity. The solution needs to keep drivers safe, happy, and supported on the road; all of which WEX鈥檚 products and solutions provide. This has been demonstrated through the strong partnership 糖心Vloghas with its customers.

Joe Braun, President of Horizon Transport, located in Wakarusa, Indiana, and one of North America鈥檚 largest RV transport companies, explains the challenge in terms of driver experience. 鈥淐ontract drivers expect that we will provide them with a reliable, secure, and seamless fuel and expense card service,鈥� he said. 鈥淚t helps that they recognize the 糖心Vlogbrand.鈥�

Horizon had nearly 1,500 drivers on the road pre-pandemic, and after a drop during the initial lockdowns, is on track to transport 90,000+ vehicles this year with more than 1,600 drivers.  鈥淲e are busier than ever, but meeting the high demand while keeping drivers safe and productive makes the day more enjoyable,鈥� he says.

Mid-sized carriers are also growing their market share. Jenni Miller is the president and founder of Transport US, which launched in 2019. For 20 years prior to founding her company, Jenni helped lead her father鈥檚 transport business and 糖心Vlogwas right there with them all along the way. Because of Jenni鈥檚 great experience as a 糖心Vlogcustomer, her new venture partnered with 糖心Vlogfrom day one.  While the timing of the pandemic-induced squeeze wasn鈥檛 great for the just-launched Transport US, the recovery has been rapid.

Technology that helps create a secure, safe driver experience

鈥淗aving just started out, when COVID-19 hit we had just 60 contract drivers,鈥� Jenni said.  However, they doubled that number by June of 2020 when the industry started to recover.  All her drivers own their own equipment, and the savings and technology advances from 糖心Vlogmake Transport US competitive for contractors.  鈥淲hile we have many retail customers, most of our work is with dealers, who just want more units on their lots to capture the escalating sales opportunity.鈥�

Jenni credits this sales growth in large part to clever marketing executed industry-wide.  The new RV value proposition appealed to the desires of a nation chock full of pent-up disposable income.  鈥淚 also think social media has had a hand in strengthening the market.  RVs are family-friendly and modernizing the long-time # campaign from RVIA onto social media has celebrated the joys of camping, and is attracting a lot of first-time buyers.鈥�

Providing drivers with a reliable and satisfying experience is part of what 糖心Vlogcalls our 鈥渓ifestyle platform鈥� payment solution.  鈥淚t works for both drive-away and carrier situations,鈥� says Patrick Hicklen, director of national sales for WEX, who works with many of our RV customers.  鈥淐arrier companies can set up the payment card to cover as much or as little as they like, and give drivers the flexibility to shop anywhere Mastercard is accepted.  Many carriers also have relationships with multiple fuel vendors, as well as cover daily expenses for the drivers and any family members who happen to join them on the trip.

鈥溙切腣loghas done a good job leading the fuel payments industry,鈥� said Jenni of Transport US, 鈥淎nd the technology-based solutions are helping us adapt to these shifts in the industry.鈥�

鈥淲e continually expand and diversify our fleet management offerings to modernize the overall experience, and provide more opportunities for our customers,鈥� Patrick said.  鈥淪avings and access to the largest in-network fuel locations are just the start.  We focus on ensuring that our technology at all levels – driver apps to back-end processing to POS transaction management – is scaling and flexing with our customers鈥� growth.鈥�

鈥淔uel savings alone can make a large difference to the profitability of the trip for both driver and carrier,鈥� he said. 鈥淥n a 125 gallon purchase, a 30-cent savings per gallon adds up.  Plus, using technology to manage sales tax and receipts is a huge time saver, as well as ensuring accuracy for the carrier.鈥�

Carriers and their drivers are classified as essential workers.  鈥淲e鈥檝e been on the road throughout,鈥� Joe of Horizon Transport said. 鈥淲e need to provide our drivers with confidence that there is the proper back-office and on the road support they need.鈥�

All fleet cards are not the same, and different types of fuel cards suit the needs of different kinds and sizes of businesses. View WEX鈥檚 fleet card comparison chart to see which fleet fuel card is right for you.

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