In The Headlines

Kings of the Road Again: RVs Make a Comeback

Winnebago, General Motors, Airstream, Travco and other motor-home makers popular in the 1960s and 1970s are making a comeback, driven in part by people who are snapping up decades-old models and restoring them to their kitschy glory, which often includes paint and trim in shades of orange, green and harvest gold. A network of clubs, forums, parts suppliers and service shops—like Good Old RVs, ClassicWinnebagos.com and Applied GMC—is making it easier to keep the old machines rolling.

Interest in vintage recreation vehicles (RVs) is fueled by road-trip nostalgia and an improving economy, but also mirrors an upswing in the mainstream RV industry. The recreation vehicle industry shipments will reach 381,100 units in 2016, a 2.0% increase above the 2015 total of 374,246, according to a new forecast from the Recreation Vehicle Industry Association. Helping the uptick is a spate of new RVs with old-fashioned looks, like Winnebago’s Brave, a riff on its 1970s model. Trailer maker Shasta made a splash recently with replica of its 1961 Airflyte.

The appeal of classic models like the (original) Winnebago Brave, GMC Eleganza and Fleetwood Pace Arrow is partly that they are relatively easy on the wallet. They typically start at a few thousand dollars for a fixer upper, whereas a new “Class A” rig of a similar size can cost $100,000 and up. That said, their fuel economy (six to 10 miles per gallon) is about the same as a modern gasoline-powered motor home (i.e., pretty terrible) and a few mpg short of a new diesel model. The going rate for old Winnebagos and other vintage RVs in working condition and with a nice interior is $20,000 to $25,000. With fixer uppers, the new owner often winds up paying about the same amount to make all the fixes.

Low-slung with (relatively) aerodynamic styling, 70s-era GMCs are in high demand. Meanwhile, Winnebagos, especially models from the 1970s, are coveted for their boxy shape with slanted front grilles and a prominent, protruding “eyebrow” above the windshield. The features make the vehicle look as though it is leaning forward into the wind.

Motor homes have been around almost as long as automobiles. One of the earliest, a modified 1916 Ford Model T pickup called a “telescoping apartment,” is at the RV/MH Hall of Fame and Museum in Elkhart, IN. It has slide-out compartments that expand its 16 square-feet of cargo area to a space large enough for a mattress and additional storage. The design foreshadows modern RVs that maximize space with sliding walls, said Museum President Darryl Searer. “The retro trend is really catching on,” Mr. Searer continued, noting that older RVs are getting difficult to find, even in junkyards, because their spare parts are increasingly in demand.

The RV industry has gone through numerous cycles of boom and bust, but the 1960s and early 1970s were especially good times that saw advances in the vehicles that made them attractive to a widening range of customers who wanted to “camp” without having to sacrifice the comforts of home. Ads for Allegro motor homes around that time used the tagline “Roughing It, Smoothly.” GMC touted that its models, which had front-wheel drive and cushy adjustable air suspension, didn’t ride like trucks—a barb at rivals who built campers on truck chassis.

Many longtime vintage-RV enthusiasts say they expect a new crop of younger owners to keep the trend going, though the culture of the hobby is changing. “The newer people seem to get together in smaller groups and take shorter trips, probably because they aren’t retired and their time is limited,” said Frank Condos, a retired aerospace engineer and member of the GMC Western States club. “There are younger folks coming into it, but they aren’t joiners, so membership in the clubs isn’t necessarily growing.” Mr. Condos said Facebook and other social media have partially replaced the in-person gatherings that previously brought like-minded RV drivers together. For example, there’s a Classic GMC Motorhome Facebook page that has attracted more than 1,500 members since starting about a year ago. “If you go to that page, people are asking the same questions, like ‘Where do I find spare parts? Or ‘How do I fix my generator?’ ” he said. “It’s familiar.”

Citations

1. http://on.wsj.com/1RH2y1D – Wall Street Journal
2. http://n.pr/1pTI1Ne – NPR
3. http://www.rvia.org/ – Recreation Vehicle Industry Association

The PGA Tour Looks to Capitalize on Golf Betting

Golf betting generates an estimated $2.8 billion every year, and the PGA Tour wants a piece of the action. The Tour has asked a handful of data companies to submit bids for the right to package real-time tournament data into feeds for gambling houses, according to a recent request for proposal (RFP) reviewed by Bloomberg News. The governing body of American men’s golf “continues to explore the risk/return trade-off associated with potential entry into the online sports gaming category,” the documents said. Spokesman Ty Votaw said the PGA Tour sends out proposals “all the time,” and declined to comment specifically on its gaming-related RFP. “We’re far away from any kind of deal,” he said. “We only talk about things when we announce them. We don’t talk about things in progress.”

Enthusiasm for golf continues to flag. Only 3% of American adults say that men’s golf is their favorite sport, just above boxing, swimming, and track and field, according to a December Harris Poll. The Tour would be wise to embrace sports betting, which would help retain existing fans and create new ones, said media consultant Lee Berke. “The PGA Tour is at risk of losing the next generation, said Berke, President of LHB Sports Entertainment & Media. “You have to do something or you’re going to fade away to harness racing.”

But like other professional U.S. sports leagues, the Tour has kept its distance. sports betting is illegal in most states, and active, high-dollar gambling can call into question the integrity of the contests themselves. National Basketball Association Commissioner Adam Silver has said he thinks sports betting will eventually be legal everywhere in the U.S. and has called for it to be federally regulated. Top executives in other sports tend to side-step the topic completely.

As of now, gambling on golf is pretty straightforward. If you want to bet on defending champion Jordan Spieth—an 8-to-1 favorite to win this year’s Masters—or take 13-to-2 odds on Australian contender Jason Day, your options are limited. Legal bookmakers in Nevada or overseas will let you pick a player to win, finish in the top 10, or shoot the best round. Then you wait.

Increasingly, gambling houses see more money in live betting, where they can offer a new wager with every stroke. A handful of sites already offer this kind of gambling on golf based on unofficial data feeds. The growth of this kind of point-by-point wagering has created a lucrative opportunity for leagues. In December, Sportradar renewed its data contract with the International Tennis Federation (ITF) for $14 million a year over five years—six times the value of the company’s original deal with the ITF in 2012.

Among those in talks with the PGA Tour are WME/IMG, which has the data rights for the top men’s and women’s tennis tours, and Sportradar, which counts the National Football League as an investor, according to people familiar with the matter. The NFL does not allow its data to be sold to bookmakers. The RFP also asks what other “financial upside” is available, including revenue, profit sharing, or equity ownership.

Warwick Bartlett, Chief Executive Officer of Isle of Man-based Global Betting & Gaming Consultants, said he expects betting on golf to grow as in-game betting gets more common. Golf is particularly appealing, he added, because many stars of the sport come from countries where gambling is legal, including Australia, England, and Northern Ireland.

Citations
1. http://bloom.bg/1MhpyV1 – Bloomberg
2. http://trib.in/1qwJ0mY – Chicago Tribune

The Good News Is . . .

• The U.S. economy’s service sector expanded in March, a signal that business conditions are moving at a positive pace, according to an industry report from the Institute for Supply Management (ISM). The ISM said its index of non-manufacturing activity rose to 54.5 from 53.4 the month before. A reading above 50 indicates expansion in the service sector and a reading below 50 indicates contraction.

• Carnival Corp., a global cruise company and one of the largest vacation companies in the world, reported earnings of $0.39 per share, an increase of 95.0% over year-earlier earnings of $0.20 per share. The firm’s earnings topped the consensus estimate of analysts by $0.07. The company reported revenues of $3.7 billion, an increase of 3.4%. Management attributed the company’s results to increased travel bookings and lower fuel prices.

• AccorHotels, one of Europe’s largest hotel groups, announced that it had bought Onefinestay, a London-based short-term vacation rental company, for $169 million. The move is the latest effort by AccorHotels to expand into the so-called sharing economy after companies like Airbnb, the vacation rental website now valued at roughly $24 billion, have made it more popular for people to turn to forms of accommodation other than hotels when traveling on vacation or on business. The deal will give AccorHotels, based in Paris, control of Onefinestay’s stable of roughly 2,600 luxury properties that it manages on behalf of their owners.

Citations

1. https://bit.ly/1OVnkqn – The Institute for Supply Mgt.
2. http://cnb.cx/1gct3xa – CNBC
3. http://bit.ly/1RSiScC – Carnival Corp.
4. http://nyti.ms/1PWNmYK – NY Times Dealbook

Planning Tips

Guide to Balance Transfer Cards

If you are carrying a balance on one or more high-interest credit cards, a balance transfer card can save you money and help you pay down your debt. Balance transfer cards offer very low transfer rates for bringing a balance over from a different card. If you are paying a lot in interest on your current credit card balances, transferring those balances could benefit you. It is important to be realistic about your payment goals and fully understand what you’re getting into to make the most of a balance transfer credit card. Below are some important factors to consider. Be sure to consult your financial advisor to make sure this is appropriate for your situation.

Transfer rate – Most offers include a 0-3% introductory interest rate that usually lasts 6-18 months, depending on the offer. Make sure you know how long your interest rate will last and what it’s going to jump up to afterward. If you aren’t able to completely pay off your balance during the introductory period, you could end up with an even higher interest rate than you started with. If this is the case, you may want to specifically look for a card with a lower APR for the long-term.

Transfer fee – Most cards will charge a 3-5% balance transfer fee. This means that if you’re going to transfer a total balance of $8,000, you will have to pay an additional $240-400 off the bat. Make sure to keep this in mind when deciding whether a balance transfer card is right for your current financial situation.
Transfer window – Some balance transfer cards require you to transfer your balance within a certain amount of time to be eligible for the transfer rate. Make sure to look into any perks or limitations that are tied to transfer windows.

New bank – Most offers require that the balance being transferred comes from a different bank. If you are looking at an offer from your current lender, verify that you will be able to transfer the balance you hope to.

Use your new card carefully – Once you have received your card and transferred your balances, make a point to use your new card responsibly. Here are some things to keep in mind:

•  Avoid balance transfer surfing – It is not a good idea to transfer your balance to a new card every time the introductory period ends to avoid paying interest. Doing so will end up costing you a lot in balance transfer fees and can actually increase your debt. In addition, it will reflect poorly on your credit history.
• Minimize new purchases. To make the most of a balance transfer, you should avoid making new purchases. With balance transfer offers, the introductory rate often applies only to the balance transfer itself, and new purchases may be charged the regular APR from the beginning.
• Know how payments are applied – If you do end up paying for new purchases at a different APR, the minimum payment itself may be applied to the lowest interest debt. This could mean that you end up paying off your 0% balance transfer while your new purchases accrue interest.

Citations

1. http://bit.ly/1LiqByj – Investopedia
2. http://bit.ly/1VC1EFf – Bankrate.com
3. http://bit.ly/23mH3qY – CreditKarma.com
4. http://onforb.es/22gkgdU – Forbes
5. http://nerd.me/1ZUdjQ4 – NerdWallet.com