Editorial

Park Trailer Industry at Odds with RVIA Over Access to RV Dealers

Don Magary, Editor

It's been tough sledding for one segment of our industry over the past few years. The recreation park trailer industry has become an orphan of sorts since the Recreation Vehicle Industry Association (RVIA) summarily ejected manufacturers of park models from membership in 1994. The difference between the traditional RV and park trailers is that park trailers are vacation dwellings designed for destination camping and have some degree of portability, but are not self contained. They require city hookups for water, electric and sewers. The problem is that park trailers are not quite RVs and not quite manufactured homes. Park trailer manufacturers fight hard to keep this market segment defined as a recreation vehicle. Otherwise they could possibly fall under the jurisdiction of HUD.

RV News never fully understood why, after decades of keeping park trailer manufacturers under their wing, RVIA made the decision to drop that membership category.

In a recent telephone interview with David Humphreys, RVIA's president, he said the main issue was that RVIA feared that HUD would sooner or later define park models as manufactured homes, and RVIA didn't want to be vulnerable to have HUD consider whether or not some other categories might also be looked at as possibly housing rather than recreation vehicles. To avoid that possible scrutiny RVIA thought it would be in the long-term best interest of the rest of the membership if RVIA didn't represent park models.

Since that time park model manufacturers have been scrambling to get a foothold and have formed their own association -- the Recreational Park Trailer Industry Association (RPTIA). The RPTIA board brought industry association veteran Bill Garpow in as executive director to manage the association.

And while RVIA has not completely abandoned these manufacturers, many park model manufacturers believe that RVIA has not gone far enough in cooperating with and supporting their new association.

A couple of the more thorny issues are the equity they had in RVIA's treasure chest of reserves. According to RPTIA park trailer members did not receive, nor were they offered, any share of the substantial membership equity that RVIA had amassed ($6,000,000), despite having been a fair share member, contributor and owner of that equity and they believe they should have some of that equity. In a related issue, RPTIA believes that RVIA should share a portion of the profits from its trade and consumer shows. Again, according to RPTIA, RVIA did not offer to share any of the profits derived from Park Trailer Exhibits generated at the Louisville or Pomona trade shows.

An on-going controversy that RV News has been reporting on is the issue of trade shows and RPTIA members being allowed to participate in RVIA's show. It's been a bumpy uphill battle. And while RVIA continues to show some cooperation, RPTIA believes that it has been too little.

After learning of RVIA's plan to expel park trailer manufacturers from membership and while the new association was being formed, RPTIA sent a letter to RVIA's board asking for participation at Louisville or Pomona shows or working with RVIA to hold a secondary show on the same dates.

While RVIA didn't respond formally to the letter, RPTIA was informed orally that any RVIA members building Park Trailers would be allowed to exhibit in the 1994 shows at the member rates, using RVIA's seniority rules for space selection.

In 1995 the rules changed for show space at the Louisville show. Park Trailer manufacturers were notified that, effective with the 1995 show space drawing process, all Park Trailer exhibit space assignments (both RVIA member and RPTIA members) will be made following the RV exhibit space assignments. In addition, if the show space were sold out prior to the park trailer manufacturer's drawing, park trailer manufacturers would be limited to 1,000 square feet -- a space, if units are jammed next to each other, might accommodate two units.

In both 1995 and 1996, the show wasn't sold out so the 1,000 square foot restrictions were not imposed.

This uncertainty, however, caused RPTIA's board to look at alternative methods of displaying products. In other words, an independent show in Louisville that would run concurrently with the Louisville show.

As the RPTIA staff looked around Louisville for show space they discovered that the state-owned Commonwealth Convention Center (CCC) was being expanded and would have space for a Park Trailer Trade Show as soon as the expansion was completed (no sooner than 1999). RPTIA obtained price quotes and arranged for an oral right of first refusal on the dates from 1999 forward.

In September 1997 RPTIA's Executive Committee made plans to visit and review the CCC property. As a courtesy that RPTIA was planning such an event, RVIA's staff and members of the RVIA Show Committee were informed. RPTIA Executive Committee reviewed the CCC Park Trailer Show site, found it to be acceptable, and confirmed its oral right of first refusal on the dates in 1999 and thereafter.

RPTIA's board directed its staff to begin working with RVIA to iron out areas where mutually advantageous arrangements could be made. In 1997 space was sold out prior to the show drawing; therefore, the 1,000 square foot limitation was imposed for the first time. According to RPTIA, it's members remained displeased with the lack of full parity. The 1,000 square foot maximum space limitation, and being forced to draw space only after all RVIA member manufacturers selected RV exhibit space continues to upset members. RPTIA members felt taken advantage of by RVIA .

Then in early 1998, RPTIA received a letter from CCC informing them that the projected construction completion would not allow a 1999 show, and that the first show would have to be postponed until the year 2000. The dates of November 27 to December 1, 2000, had been tentatively reserved in RPTIA's name.

A few weeks later RPTIA was informed by RVIA that it would not support a separate Park Trailer show during the National RV Trade Show in Louisville. However, RVIA did give some ground and agreed to give RPTIA members the right to draw in the initial drawings and to recognize the RPTIA's members' seniority if they have earned this privilege.

The 1998 Louisville show was held and since space was sold out prior to the show drawing, the 1,000-square-foot limitation on park trailer manufacturers was again imposed.RPTIA continued to plan for the year 2000 show, but underestimated RVIA's clout. RVIA was about to bring out it's big guns and all but kill the idea of a RPTIA show that would run concurrently with the National RV Trade Show.

When RPTIA president Bob Kropf and executive director Bill Garpow went to Louisville to review the construction progress on the CCC, they were told RVIA had just signed a new three-year contract with the KFEC. That contract contained a clause, which barred the KFEC/CCC from renting any space to events or organizations that would compete with RVIA/KFEC for the dealers' attention. And CCC informed RPTIA that they intended to comply with the RVIA/KFEC contract.

So for RPTIA it was back to square-one.

RV News asked Humphreys why RVIA decided to play hard ball over the RPTIA show running concurrently with the National RV Trade Show in Louisville. His answer made a lot of sense. He said, "Rule number one in producing shows is that you don't do anything that will take potential buyers off the show floor."

Humphreys continued, "Look, RVIA is facing a real space limitation at the Louisville show for the next couple of years. KFEC is going to tear down the West wing of the facility and build a larger facility. In the long term, that's going to benefit us because there will be more space. But in the meantime, we are faced with some real challenges for space. The show committee considered expanding the show to the new downtown convention center and run shuttle buses between the two facilities, but rejected the plan because it would take buyers off the main show floor."

Humphreys says he knows that RPTIA believes that RVIA is not being cooperative, but insists that's not the case. He said, "If RVIA was really trying to harm RPTIA, we could easily justify not allowing park trailers in the show at all since we are going to be short of space for our members until the new west wing is completed. RVIA didn't do that. Instead, RVIA is going to limit member exhibit space and still allow park trailers manufacturers to display at the show."

The leadership of RPTIA remains frustrated, however. RPTIA plans to make a last ditch appeal to seek RVIA's cooperation in solving this dilemma by making a presentation to the RVIA board of directors at next month's RVIA board meeting.

RV News believes that both sides in this controversy have valid issues and that there are no easy answers. If it was a perfect world, RVIA would be what most industry professionals want and that's that RVIA would be an umbrella association for all segments of the industry. That way RVIA would be the true industry representative. But unfortunately it's not a perfect world and RVIA remains primarily the RV manufacturers' association.

Cutting through the politics, here's what RV News believes are the issues. RPTIA wants access to RV dealers. Thousands of RV dealers come to RVIA's Louisville show. As the industry continues to grow, space will continue to be a limitation at the KFEC facilities where RVIA holds the show.

Are there solutions? Obviously. RV News believes that eventually RVIA and RPTIA will come up with a plan that will be mutually satisfactory. There could be some areas of compromise that allow a resolution under the current framework of ideas.

And while RV News does not pretend to know the best answer to this controversy, a couple of new ideas come to mind. What if RVIA set up a park trailer village on the parking lot at the KFEC adjacent to a main show entrance where park trailer manufacturers can have as much space as they need? True, Louisville's weather during that time of year can be an issue, but it's possible that a large, heated tent might work. But even without that, RV dealers interested in seeing park trailers would brave the weather to see the latest innovations in that product category ­ and the units themselves could be heated with a little pre-planning. And while this would not solve the problem of which association benefits financially, we believe that issue is secondary.

Another possible solution would be for RPTIA to abandon the idea of having a show concurrent to the Louisville show and produce their show at a different time in a different location. The issue here of course is whether or not dealers would come to a park-trailer only show. Here, we would suggest that RPTIA look at what wholesale distributors do to attract customers to their shows. They offer great specials and even set up a program where the customer's expenses to the show, including airfare, are paid. They also have their shows in locations where people like to go and take their families such as Las Vegas, Reno, Nashville or other desirable destinations. Few would argue that Louisville has lost it's luster as far as a place to go and if it were not for the huge business possibilities and tradition we doubt that many dealers would select that as a desirable place to travel.

Another possible solution for RPTIA's dilemma might be to throw in with the Recreation Vehicle Dealers Association (RVDA). Since RVDA normally holds their convention and expo in September, the weather would not be as big an issue for an outside park trailer village. And we would imagine that RVDA might be easier to work with than RVIA.

And while RV Newsquestions RVIA's original decision to expel park trailer manufacturers from membership, that's ancient history. Park trailers are now and have always been recreation vehicles, although a highly specialized niche designed for destination camping. Their dealer customer base is the same as manufacturer members of RVIA and it makes sense to work together.

RV News urges both RPTIA and RVIA to approach this issue with renewed vision and cooperation and see if there can be a mutually satisfactory solution to this problem.

RVN