Economic Downturn-Effect on the Leisure Industry

Submitted: Tuesday, Feb 17, 2009 at 20:00
ThreadID: 66056 Views:5036 Replies:12 FollowUps:18
This Thread has been Archived
Speaking to a few of my comrades in the 4wd/camping/RV industry my obseravtion is this.

The need to be careful with funds has not stopped people spending money, it has just made them seek better value.

A Camper Trailer Manufacturer we supply is seeing increased business at the same time Caravan Manufacturers are going under.

A 4wd accessories business that provides products at the lower end of the price market is seeing increased business.

In our business we are getting inundated with calls from people seeking a value orientated product.

People are not going away from the great life of camping and travelling. Rather they are just finding a better way to afford it.

Jim.

Back Expand Un-Read 0 Moderator

Reply By: jdwynn (Adelaide) - Tuesday, Feb 17, 2009 at 20:11

Tuesday, Feb 17, 2009 at 20:11
Interesting Jim. Reflects some of what I've heard and I think also there is logic to it. I hope it also means outback communities and icons such as Pink Roadhouse, Birdsville Pub continue to be supported as these contribute to the great experiences we have out bush. cheers
AnswerID: 349544

Reply By: Member - shane (SA) - Tuesday, Feb 17, 2009 at 20:59

Tuesday, Feb 17, 2009 at 20:59
Hi Jim, I think in many cases those that have most of the items required to get away from it all, will. As long as the fuel prices stay low. Those who are still building up their collection of goodies will, as money and need see fit. People are always going to sell because they no longer require said items and there is always going to be those people that will snap them up. That's how the worlds merry go round works. The wish list just takes longer and the desire to have, eats away more. but it still happens and life goes on.
cheers shane.
AnswerID: 349553

Reply By: Sigmund - Tuesday, Feb 17, 2009 at 21:21

Tuesday, Feb 17, 2009 at 21:21
When last I enquired, a well-known maker of CTs had a 14 week order list.

Maybe prospective van owners downscaling.
AnswerID: 349555

Follow Up By: Member - John (Vic) - Tuesday, Feb 17, 2009 at 21:27

Tuesday, Feb 17, 2009 at 21:27
And many I have just contacted can deliver in about 4 weeks from order.
These are not small backyard businesses but the larger end of the market.

The full flow on of the world issues have not yet caught up with Aus.

Give it time, we are not immune.

VKS737 - Mobile 6352 (Selcall 6352)

Lifetime Member
My Profile  Send Message

0
FollowupID: 617833

Follow Up By: Best Off Road - Tuesday, Feb 17, 2009 at 21:49

Tuesday, Feb 17, 2009 at 21:49
We are certainly not immune, but we are travelling better than most developed countries.

Some who speculate may be hurt, some who fluff about in the top end of any market may be hurt, BUT, genuine businesses providing decent stuff at a fair price will flourish, as the speculators fall by the wayside.

The free ride is over for the moment. Only the wary will survive.

0
FollowupID: 617838

Follow Up By: Member - John (Vic) - Tuesday, Feb 17, 2009 at 23:59

Tuesday, Feb 17, 2009 at 23:59
"We are traveling better than most developed countries"

So far, early days yet the fuller effects have not hit home as yet and is helped in the short term because we did not start with the level of debt that most other countries have. Thats changing fast.

Our children will be paying for this governments spending policies for many years to come and the shortfalls in future required government infrastructure spending will also hurt big time.

I object to my surplus ending up as discarded Xmas wrapping paper in the bin rather than much needed road. rail, power and water infrastructure.
The last $10.4 Billion didn't do anything to increase employment and neither will this $42 Billion.
A lot of my clients are shedding staff and will shed a lot more in the next few months as the WIP finishes.

Wait and watch, keep ya powder dry as the battle has only just begun.



VKS737 - Mobile 6352 (Selcall 6352)

Lifetime Member
My Profile  Send Message

0
FollowupID: 617854

Follow Up By: Sigmund - Wednesday, Feb 18, 2009 at 05:59

Wednesday, Feb 18, 2009 at 05:59
I would've thought the real issue for recreation/travel suppliers is consumer demand. Self-funded retirees have seen 20 - 25% wiped off the value off their 'balanced' portfolios in the last year. The wary among that group will be cutting back on discretionary spending.
0
FollowupID: 617860

Follow Up By: Member - Warfer (VIC) - Wednesday, Feb 18, 2009 at 08:55

Wednesday, Feb 18, 2009 at 08:55
**I object to my surplus ending up as discarded Xmas wrapping paper in the bin rather than much needed road. rail, power and water infrastructure. **

You would never have got these done under Howard anyway...He had plenty of time too do it,how much time did you want to giv him John..
From what i have noticed in the past year is that its becoming annoying at ALL the road works going on in Melbourne.

He was booted for his tight ass ways (giving nothing back to MR Average)...

Australia is no different to what all the other major economies are pumping in.

Also are you going to Wandin with your club,Sunday ???





Cheers
0
FollowupID: 617870

Follow Up By: The Landy - Wednesday, Feb 18, 2009 at 10:48

Wednesday, Feb 18, 2009 at 10:48
My ten cents worth……..

Estimates I’ve seen put about AU$700mln of the AU$10.4bln found its way into retail sales spending (less than 10%). The rest most likely went to reducing mortgages and credit card bills.

Now that isn’t a bad thing in an environment where the household balance sheet needs to be reduced. Reduce debt and spending. The reason why this has occurred has its roots in concerns over future employment. A recent consumer sentiment survey I reviewed had loosing your job as the key concern. In this environment the consumer/household will stop spending and save; talking discretionary items.

However, once the crisis pasts, and it will in time, this reduction in the personal balance sheet will, combined with certainty of employment will see the consumer/household come out and spend once again, and be in a better shape to do so.

Short term, the economy will continue to contract, but longer term this adjustment to the personal balance sheet will be a positive.

Cheers
0
FollowupID: 617883

Follow Up By: Member - John (Vic) - Wednesday, Feb 18, 2009 at 10:55

Wednesday, Feb 18, 2009 at 10:55
"From what i have noticed in the past year is that its becoming annoying at ALL the road works going on in Melbourne"

We can split hairs all day long but the big projects like the freeway upgrades etc all started well before this Fed Government came to power.

Off the top of my head I can't think of one project that has been supported by this Fed Government, Can you?

Just because its what the rest of the world are doing also does not male it right.

As for tight arse ways, that can always be argued, but in light of the now substantial and ever increasing interest cost we are being forced to bear for no real show of substance it will be worth remembering when your grandkids are trying to repay the debt.

Sigmund is also correct, the Grey Nomad Self Funded in particular will certainly change their spending habits.

Cheers

P.S Don't know about Wandin as yet have heaps to get done.

VKS737 - Mobile 6352 (Selcall 6352)

Lifetime Member
My Profile  Send Message

0
FollowupID: 617886

Follow Up By: Best Off Road - Wednesday, Feb 18, 2009 at 20:38

Wednesday, Feb 18, 2009 at 20:38
Warf,

We'll be at Wandin this Sunday, pop in and say hello.

Cheers,

Jim.

0
FollowupID: 618018

Follow Up By: Member - Warfer (VIC) - Wednesday, Feb 18, 2009 at 21:55

Wednesday, Feb 18, 2009 at 21:55
**Warf,

We'll be at Wandin this Sunday, pop in and say hello. **

No worries buddy see ya there !


Cheers
0
FollowupID: 618051

Reply By: Wayne (NSW) - Tuesday, Feb 17, 2009 at 21:25

Tuesday, Feb 17, 2009 at 21:25
Jim,

Up until December 28th last year bookings for this years trips were slow. Then as if a tap was turned on bookings were coming in thick and fast.

The 3 trips that I have already done this year in the Vic High Country were better than average for vehicles attending.

We did postpone the trip, again in the VHC, that was planned for this week. I will now do two trips back to back in early March.

Even the Canning Stock Route, has only one position left and there have been good inquires for all the other out back trips and driver training.

Wayne.
AnswerID: 349556

Follow Up By: The Landy - Wednesday, Feb 18, 2009 at 10:51

Wednesday, Feb 18, 2009 at 10:51
Hi Wayne

Would you see the booking pattern you described as the 'norm' or is this year's booking patterns different to previous years?

Cheers
Baz

0
FollowupID: 617884

Follow Up By: Wayne (NSW) - Wednesday, Feb 18, 2009 at 11:21

Wednesday, Feb 18, 2009 at 11:21
Baz,

I think it was the rush just after Christmas that caught Vic by surprise. We are hoping this trend will continue.

In the past bookings have come through over time and trips have gone ahead but to have so many inquires at once is not normal.

The price of fuel, lower interest rates and the uncertainty of travel overseas along with the cash hand out have people thinking about travel in Australia

Any form of travel in Australia keeps the greater percentage of money spent in Australia. Who needs a wide screen TV when you have the outback.

Wayne
0
FollowupID: 617890

Follow Up By: The Landy - Wednesday, Feb 18, 2009 at 14:15

Wednesday, Feb 18, 2009 at 14:15
Thanks Wayne...an interesting development and as you say perhaps people are more willing to travel at home...can't be a bad thing.

I just I could get off work to do some myself.......rigged up the Landy to get away and it is sitting in the driveway at present!
0
FollowupID: 617923

Reply By: Gone Bush (WA) - Wednesday, Feb 18, 2009 at 00:39

Wednesday, Feb 18, 2009 at 00:39
Hhhhmmmmm,,,,,

Thinly disguised self promotion.....

I'm glad I ain't too scared to be lazy
- Augustus McCrae (Lonesome Dove)

Lifetime Member
My Profile  My Blog  Send Message

AnswerID: 349577

Follow Up By: Axel [ the real one ] - Wednesday, Feb 18, 2009 at 08:49

Wednesday, Feb 18, 2009 at 08:49
As per usual ,,
0
FollowupID: 617869

Follow Up By: Gone Bush (WA) - Wednesday, Feb 18, 2009 at 10:09

Wednesday, Feb 18, 2009 at 10:09
Yep

the thread asking about Black Widow and Outback Drawers is not even disguised at all.

Pathetic

I'm glad I ain't too scared to be lazy
- Augustus McCrae (Lonesome Dove)

Lifetime Member
My Profile  My Blog  Send Message

0
FollowupID: 617879

Follow Up By: Best Off Road - Wednesday, Feb 18, 2009 at 21:00

Wednesday, Feb 18, 2009 at 21:00
Would you two like a Bucket and Spade?

0
FollowupID: 618028

Reply By: The Rambler( W.A.) - Wednesday, Feb 18, 2009 at 00:43

Wednesday, Feb 18, 2009 at 00:43
The way to cut costs-------Avoid caravan parks and go bush where ever possible.It's amazing what you can find down that track that heads off into the bush.Too many people sit in the van parks week after week and wonder why their trip costs so much.
AnswerID: 349578

Follow Up By: Member - Howard (ACT) - Wednesday, Feb 18, 2009 at 09:01

Wednesday, Feb 18, 2009 at 09:01
cannot fully agree with this statement
yes obviously bush camping(free) is cheaper than any caravan park or campimg ground
1 basic flaw in you argument is that" people who sit for weeks at a time in a caravan park " arn't travelling.
they are having a stationary holiday.
I have found that with the exception of the east coast where parks charge the excessive $30+ a night fees, once you get away from the coast you can mostly get a campspot often with power for between $10 and $20 per night.
at that price i'm not prepared to do the bear act and s++t in the woods.I hate digging holes at the end of a days driving.
if you are travelling in a 4wd hauling a van or CT and spending anywhere up to a couple of hundred dollars a day on fuel the accommodation component of travel is negligable.
on each of several 4-5 week trips my total accommodation bill has been far less then a single day fishing charter or that helicopter flight and definitely less than the grog bill.

My experience has been camping fees would only be 10% maximum of cost of travel.
cheers
Howard

Resigned to Retirement

Member
My Profile  Send Message

0
FollowupID: 617871

Reply By: Member - Lionel A (WA) - Wednesday, Feb 18, 2009 at 04:52

Wednesday, Feb 18, 2009 at 04:52
For many years I bought with my heart instead of my head, which in the end, wasted a small fortune.

With the economic down turn I now buy what I need rather than what I want and am now showing a small surplus in the bank account.

Wish I'd figured that one out years ago....lol.


Cheers.......Lionel.
AnswerID: 349582

Reply By: Member - John G- Wednesday, Feb 18, 2009 at 10:31

Wednesday, Feb 18, 2009 at 10:31
G'day Jim

The situation and the stories seem to be still a bit mixed regarding what is going on and what is likely to go on.

As self-funded retirees we have taken a 30% drop in super capital.
If you were in the category of self-funded (or indeed any) retiree contemplating an intial outlay on towing vehicle + caravan or campertrailer, then surely you would have to look at all the costs of the next 10 years travelling vs, what your travelling options might be.

I'm not talking about folks who've had caravans for ages, or those who know a good used van opportunity when they see it, but those wanting to buy new. If you do the cost sums in detail (annual operating costs, fuel, accommodation, meals, possible towing vehicle replacement, entry fees etc) the result is surprising.

There are so many 'ifs' and 'buts' in such a cost analysis and folks have got to do it for themselves, but my guess is that the retailers rely on folks following the travelling-on-the-road dream, and not taking a hard-nosed look at the costs. At the end of the day it's personal choice and lifestyle, but it does cost, and those who fork out years of hard-earned on retirement must be a significant market sector.

At the moment there seems to me to be a lot of talking up coming from the caravan and recreational vehicle industry, and not much talk about just how folks should go about looking at costs over the long term.

Cheers
John
AnswerID: 349614

Reply By: jezza68 - Wednesday, Feb 18, 2009 at 11:40

Wednesday, Feb 18, 2009 at 11:40
The perception of what people call holiday value is quite amusing sometimes,
We live in Broome and the number of locals who go to Bali annually is staggering. When you ask why they choose Bali the answer is always because you can just laze on a beach, enjoy massages and enjoy the restaurants. My answer is what is that sandy thing over the dunes with the blue water around it? What is all the spas around the cable Beach Precinct offering and where is the smell of cooking coming from?
We did a comparison of 2 adults staying home in Broome and doing the Bali thing and it worked out to be half the price to actually leaving the country. Except you dont have dreadlocks, gastro and a suitcase full of dodgy DVDs which you never have time to watch as you are too busy paying off the credit card! I then show pictures of my family on top of Uluru, Mt Augustus, etc and ask them if they have ever been there? No its too expensive and hard is the answer!!!

On the bush camping theme I sometimes question the value in some cases:
1) The legal distance that a bush camp is allowed to be near a town is normally 16kms? How much fuel do you use travelling to that town to enjoy its attractions?
2) What is the cost of running that genset? or how much did it cost for that flash solar battery setup? For the average tourer the cost to stay in a van park is not that much different to the above costs and convenience.

I dont mean to offend people but I just want to hear the justification for the average traveller.
AnswerID: 349623

Follow Up By: Rolly - Wednesday, Feb 18, 2009 at 15:08

Wednesday, Feb 18, 2009 at 15:08
Jeez, jezza, are you really fishing for a logical response?
Many of the contributors to fora such as these haven't yet learned that the money that you *don't* spend on unproductive frippery can improve your lifestyle out of all proportion to the "..haven't you got one of these?" status reduction.
Remember the 3B motto: Bu11$hit Baffles Brains.
0
FollowupID: 617930

Follow Up By: Motherhen - Wednesday, Feb 18, 2009 at 18:16

Wednesday, Feb 18, 2009 at 18:16
Hi Jezza

Sure we could do lots and lots of travel overseas and stay in reasonable hotels for a lot less than the cost of our rig and running costs, but there is no comparison to touring the outback, and camping under the stars in peace and solitude miles from anyone else. I hate crowds of people pushing and shoving, hate hotels and waiting at airports. I love what we have to see and experience here in Australia.

IF we want to see attractions in a town, we stay there, rather than commute from a bush camp, but hate the crowds, and there are not many towns we want to spend more than a day in anyway. Always glad to get back into the bush.

We have been to Bali - but not to lie on the beaches or stay in hotels - we might as well be home. We went straight to a village inland, where the locals have not been spoilt by western culture, and they are the most wonderful people you could meet. Beautiful people in a beautiful island. All we saw of Denpasar from from a car at night on our way from and to the airport.

Sorry Jezza, but to us Broome now ranks with going to the city. Give it a wide berth now. No longer the sleepy semi tropical town it was in my childhood. When we were in the Kimberley we were camped near a young couple from Broome. They said they get out of Broome in tourist season - too many bl--dy people.

Motherhen
Motherhen

Red desert dreaming

Lifetime Member
My Profile  My Blog  Send Message

0
FollowupID: 617981

Reply By: Member - Wayne David (NSW) - Wednesday, Feb 18, 2009 at 12:31

Wednesday, Feb 18, 2009 at 12:31
It seems to me that the idea of Bush Camping to save on costs maybe flawed in some cases.

Personally I prefer and love bush camping. I usually get by just fine without caravan parks but there are times when they are the right option for me. For example if a free camp for just an overnight stay is taking me many miles out my way, then I do a bit of cost exercise that looks at fuel and vehicle wear & tear. Often the park is the better option. Besides which we have made some pretty good discoveries with paid places. Some are gems.

Then of course there's the other problem of trying to bush camp within reasonable striking distance of a major city. Sydney....forget it. 'Pay the fee & enjoy the convenience' is my advice.

Speaking as someone semi retired, we are definitely planning for more camping holidays in Australia and way less overseas travel. Our dollars will go to the industries that support what we plan to do such as 4x4 training, rec vehicles, camper trailers, tag along tours, etc, etc and the communities that we visit along the track.
AnswerID: 349631

Reply By: troopyman - Wednesday, Feb 18, 2009 at 12:33

Wednesday, Feb 18, 2009 at 12:33
The global downturn hasnt hit us yet . You are right though . A lot of people will downsize there new lcd tv or just buy a cheaper one and the same goes for other goods and services as well .
AnswerID: 349632

Reply By: Member - Mike DID - Thursday, Feb 19, 2009 at 19:12

Thursday, Feb 19, 2009 at 19:12
Talking to a friend living in Cairns, he says backpackers and Japanes tourists are staying away in droves.
AnswerID: 349918

Sponsored Links