There is no question the COVID-19 crisis has impacted lives throughout the world in ways considered unimaginable less than three months ago. While most news outlets focus on economic turmoil and medical updates, there seem to be some positives for the recreation industry.
While they may not be universally considered essential at the moment, open recreational dealerships are seeing business improvements at a time when other businesses are struggling. And (surprisingly) now may be a better time than ever to review financial plans for recreation lending for dealers.
COVID-19 Impact on Travel
It is crucial to study the impact that the coronavirus has had on the travel industry. Major airlines dealt with a dramatic drop-off in paying customers over the past few months, with travel advisories being prominent as well as a fear of becoming ill.
Looking back to 9/11, a disaster that certainly took a toll on the tourism industry, the slow recovery encouraged people to begin looking for different ways to vacation. This included buying or renting RV’s, since they were considered much safer and less dangerous than flying at the time. The current situation is not much different.
With the worry of catching or spreading the virus on an airplane, there is a higher demand for private vehicular transportation to ensure health and safety. There is also, without question, going to be more of a demand for those wanting to travel. Being able to perform work activities with a simple Wi-Fi connection, along with being forced to stay at home for weeks (and at this point months) on end, will certainly lead to more and more people looking for a change of scenery in their lives.
It’s important for companies providing private travel options, such as RV and boat dealers, to get ahead of the game and prepare for the surplus appetite for their services.
A Promising Future
The RV industry has been consistently growing year after year. Travelers are no longer looking to stay at hotels with high customer turnover (i.e., a greater chance of contracting the virus) and, instead, turn to the comfort of controlling their own vacation. In the United States, the RV industry is responsible for nearly $18 billion in sales. Now is the time to ensure that there are enough financing options to prepare for the future by embracing recreation lending for dealers.
If you are interested in offering financing options for customers with past credit challenges, contact Medallion Bank today. We offer fast, simple, and easy non-prime financing options. Learn more here.