Recreational Park Trailer or 'Park Model' Shipments Were Up 30 Percent in 2004, Setting an All-Time Industry Record

NEWNAN, Ga., Feb. 24, 2005 -- National shipments of recreational park trailers were up 30 percent in 2004, compared to a year earlier, setting an all-time industry record, according to the Recreational Park Trailer Industry Association (RPTIA).

"These are the highest shipment figures we've seen in the 25-year history of the recreational park trailer industry," said Olin Wenrick, who serves as the elected president of RPTIA in addition to being president and CEO of Elkhart, Ind.-based Trophy Homes, Inc., adding, "Our industry sees no letup in demand from our consumer or campground customers."

RPTIA reported 9,186 park trailer shipments during calendar 2004, up 30 percent from the 7,074 shipments reported during the same period in 2003. Previously, RPTIA reported 7,363 shipments in 2002; 7,388 in 2001; 8,343 in 2000; and 8,161 in 1999.

Wenrick said the high volume of recreational park trailer or "park model" shipments reflects rising real estate prices, which are prompting record numbers of consumers to look for more affordable options for vacation dwellings.

Indeed, while condos and site-built homes in resort areas typically cost $200,000 or $300,000 or more, park models generally cost less than $50,000, with the average price being in the $35,000 range. Most park models are placed on campsites, which can be leased for $1,500 to $5,000 per year, depending on location. However, some consumers also place their units on private property and use them as vacation homes, subject to local zoning requirements.

Some of the biggest names in the campground business are also purchasing park models in record numbers, primarily to accommodate travelers who do not have RVs but want to enjoy the recreational lifestyle, Wenrick said.

Thousand Trails alone purchased more than 50 park models in 2004, compared to "about five" the previous year, said Brad Nelson, vice president of operations of Frisco, Texas-based Thousand Trails, Inc., which operates 59 campgrounds in 16 states and British Columbia. Nelson added that the company plans to purchase even more units this year as it gradually replaces its travel trailer rentals with park model units.

Dean Crawford, senior vice president of Milford, Ohio-based Leisure Systems, Inc., which franchises campgrounds using the Yogi Bear's Jellystone Park Camp Resort name, said he sees rising demand for park models, too, partly because the wheeled units are classified as recreational vehicles and can often be set up in campgrounds without building permits.

"They're definitely in demand with campers," said Mike Gast, director of communications for Billings, Mont.-based Kampgrounds of America, Inc. (KOA), which has about 60 park models among its more than 470 locations across North America, adding, "I think you'll see a nice steady growth in (the park model) business for some time."

RPTIA, for its part, represents 33 recreational park trailer manufacturers that have pledged to the association that they will adhere to the American National Standards Institute ANSI A119.5 standard, which mandates more than 500 separate safety requirements for recreational park trailers. RPTIA assists its members in complying with the ANSI standard by providing unannounced inspections of their manufacturing facilities by accredited third party engineering firms. Members of the association who are in compliance with the standards program have the right to proudly display RPTIA's gold, blue and green oval seal, which is typically placed adjacent to the primary entrance to the recreational park trailer.