The RV Rental Business Model – RVPlusYou Chooses “Split-Fee”: Why it works

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RVPlusYou Has Adopted a Different Kind of Business Model for Their RV Rental Business. RV Rental Companies Pay Just 3% to Acquire and Book New Renters

With RVPlusYou the RV’s are not driven or towed by the renter. The RV owner does all the work of delivering and setting up, the RV renter simply drives up and it's ready when you arrive.”

— Cees Dobbe, Co-Founder

NIPOMO, CALIFORNIA, USA, December 8, 2017 — Given the cost of software, customer support, advertising and marketing that RVPlusYou provides, and at no upfront cost to RV owners and rental companies, how can this type of business model generate enough revenue to sustain and grow the business?

Cees Dobbe, CFO and founding partner RVPlusYou explains: “The 3% service fee just covers our cost of the credit card transaction, but our revenue is generated in booking fees”, says Dobbe. “In addition to a 3% service fee withheld from the RV rental company, we charge a booking fee of 6% to 17% to the renter”.

The company charges the renter a booking fee percentage that ranges, high to low, depending on the total RV rental revenue for the stay. Longer RV rent periods, say for a house remodels or disaster recovery, are billed at the lower end, while weekend stays might be charged at a higher rate.

“The RV renters that book on our site generally take into account the overall cost and value of renting a private party owned recreational vehicle, not a small booking fee” explains Mr. Dobbe. “The overall cost to rent an RV for a weekend getaway is generally far less than an RV rental booked through one of the major chains, sometimes well over 50% less.”

By focusing marketing efforts on the novice RV renter and small rental start-ups, RVPlusYou has identified a potentially huge market, more in line with the vacation rental market than the RV rental market which is geared toward driving the RV while on vacation.

“With RVPlusYou the RV’s are not driven or towed by the renter,” Dobbe says. “The RV owner does all the work of delivering and setting up, the RV renter simply drives up to the destination, more like an RV vacation rental.”

While the RV rental market hovers around $350 million per year, the vacation rental market in the US alone is expected to reach $23 billion in the next few years. Quite an upside when compared side by side.

The company points out that there are over 10 million registered RV’s in North America and based on surveys done with 200 random RV owners, approximately 10% of the RV owners in North America would like to rent out their RV to earn extra income.

“We’re targeting 1 million rental units” says Dobbe. “That’s close to the total number of rooms owned by the largest hotel chain in the world, Marriott.”

With the business model chosen, the website built, and the marketing engine picking up steam, RVPlusYou is confident they have a winning formula. “We’ve got the pieces in place, and now it’s time to put it all into action,” Dobbe says.

For information on how to either rent an RV vacation getaway, or earn some extra income by offering an RV for rent, you may contact the company through it’s website at www.RVPlusYou.com.

Russ Lovell
RVPlusYou, L.L.C.
8055405248
email us here

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Sarah Thompson

Sarah Thompson

Sarah is a financial reporter, focusing on technology, national security, and policing. Before joining Daily Telescope she worked as a staff writer at Fast Company and spent two years as a foreign correspondent in Turkey. Her work has been published in Al Jazeera America, The Nation, Vice News, Motherboard, and many other outlets.
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