Last Updated: 13th October, 2023
RVshare was the first ever peer-to-peer recreational vehicle rental marketplace that was started in the year 2013 by the business enthusiast Jon Gray. The idea of launching such a unique business first emerged in the mind of co-founder Mark Jenney, when he and his wife returned home after a cross-country road trip to realize that now their RV will sit idle for a long while.
As a result, Jon and Mark inaugurated RVShare, which now has over 60,000 RVs listed on its website, all owned by the general US public, protected by hefty insurance, and earning hundreds of dollars per booking. Little did the founders know that their business would gain immense success and raise up to $70 million in funding.
The main reason behind RVShare’s success is the minimalist lifestyle approach of the modern generation that prefers renting over buying and values privacy. Millennials could afford a fully furnished recreational vehicle at a low cost and enjoy comfortable outings. For the older generations, traveling with family in a motorhome could be a ride full of nostalgia.
What expedited the growth is that for both age groups, RVing is seen as a huge lift in status symbol. This factor, along with the minimalist lifestyle and affordable rental pricing paved the way for the success of RVShare.
Following the minimalist trend, more and more people have started renting RVs instead of buying. According to reports, the average age of an RV owner in the US has declined from 48 years to 45 years and there’s a continuous increase in the number of owners with children living at home. It means that the single gen Z and the majority of the millennials are yet to enter the most lucrative customer segment whose size is increasing rapidly.
Just to help you keep a record, over 40 million people in America go RVing regularly and spend 3-4 weeks on an average per year in a recreational vehicle. If you do the math based on the aforementioned facts, you’ll find it obvious that the RV rental industry is about to bloom in the near future, making the business worth investing.
Not to mention, the pandemic has fueled interest in recreational vehicles. Motorhome sales and rentals have dramatically ramped up. While industry-wide data is yet to be compiled, RV dealers who reopened in early May, reported an approximate 170 percent hike in monthly sales in comparison to last year. Bookings through RVshare for the Fourth of July weekend went up by 81 percent. These statistics indicate the immediate scope of business in the RV rental industry.
Check out the following graphic that will help you understand the operations of an RV rental business and booking software.
An online RV rental marketplace consists of an admin who provides the online platform to RV owners(renters) to lend their vehicles and customers(rentees) who rent those vehicles on the platform. Read more about the roles of these three entities below:
The business model involves three main entities:
The admin/owner enjoys complete control and authority over other entities involved in the business. The main role of the admin is to supervise business operations and manage transactions. He/she is responsible for accepting or declining a listing and managing the successful delivery/return of the vehicle. The admin also earns a commission in every transaction that takes place on the platform.
The renters are the peers who lend their RVs to your main consumers. Finding renters for your RV rental business is equally important as finding rentees as both of them are the end-users. While your goal is to help prospects find RVs suitable for their needs, it is also to help RV owners find rentees to earn profit. Without a generous number of listings on your platform, the scope of success for your business stays limited.
Learn how RVshare attracts renters:
The rentees are your primary consumers. They are the people who borrow RVs from owners at a handsome price and keep your business working. Understanding the buyer personas of the rentees is essential to create a marketing strategy to attract both renters and rentees.
“Rentees and renters have a symbiotic relationship on RV rental websites. An increase in the number of rentees results in an increase in the number of renters and vice versa.”
Learn how RVShare attracts rentees:
The booking process on an RV rental software adhere to the following steps to make the RV rental business work:
The online RV rental business is not only lucrative in terms of its growth potential but also because of its diverse revenue streams that generate high returns. The multiple sources of income on an RV rental website mostly include passive revenue streams, ensuring you a high profit margin with less recurring work.
Some of the feasible revenue options that you can set up on your RVShare website are:
You may not find these revenue streams on every other vehicle rental website as we had to go a step further to discover these.
To earn money via all these revenue streams on your website, you’ll also need to ensure that the RV rental software powering your website supports them.
Also Read: Start Outdoor Gear Rental Marketplace- Business Model & Key Features Analysis
Captivating user interface and user experience are two essential elements of a business website. They ensure the delivery of smooth services and play a major role in providing a positive customer experience. Below are some must-have UX/UI features that make RV rental software more useful:
Note: This screenshot was taken during our analysis conducted in March 2023. RVShare continually updates its product and features offered. Explore RVShare.com to view the latest updates in website layout, design, and features.
Note: This screenshot was taken during our analysis conducted in March 2023. RVShare continually updates its product and features offered. Explore RVShare.com to view the latest updates in website layout, design, and features.
Note: This screenshot was taken during our analysis conducted in March 2023. RVShare continually updates its product and features offered. Explore RVShare.com to view the latest updates in website layout, design, and features.
Note: This screenshot was taken during our analysis conducted in March 2023. RVShare continually updates its product and features offered. Explore RVShare.com to view the latest updates in website layout, design, and features.
Note: This screenshot was taken during our analysis conducted in March 2023. RVShare continually updates its product and features offered. Explore RVShare.com to view the latest updates in website layout, design, and features.
The help page is required on your website as it is the first source of customer support. It must have two basic features:
A contact form will allow you to collect the customer’s contact details along with their issue or query. Your contact form should include the following fields:
There are various approaches to build an online RV rental platform, such as an RV rental booking software and SaaS solution. Not all of them will be similar to the one you just read above and some might not be suitable for every startup. Regarding the aforementioned features, they are a little different than those available on RVShare as it has a history of almost a decade building its credibility. However, what must be common in all approaches is agility, which is the need of the hour due to the increasing demand of rental RVs.
To aggravate the demand, the pandemic has also played a significant role by making people health-conscious and value their privacy. There’s no vehicle better than an RV that caters to these requirements and is a luxury symbol, especially in European and North American countries. Those two also might be the best geographical regions to establish an online RV rental business depending on how early you can start.
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Abhishek Kataria is a business consultant at FATbit Technologies. He assists entrepreneurs and business owners in developing viable digital touchpoints and marketplaces. Abhishek is curious about exploring and analyzing new business trends and has a keen eye for the latest developments in the eCommerce sector. Apart from consulting, you can find him practicing French and exploring his creativity in Photoshop.
Comments (1)
Jeff Carbine
I loved it when you said that the renters are the peers who lend their RVs to your main consumers. We plan to travel this summer, and this post is an excellent tip. I will be meeting my family and relatives to prepare the very best summer outing in our life. I will be looking for an RV motor home rental in town.