SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the Second Quarter Ended October 31, 1996
                           Commission File No. 1-9471

           ___________________________________________________________


                              CRUISE AMERICA, INC.


                  State of Florida          I.R.S. No. 59-1403609

                             11 West Hampton Avenue
                            Mesa, Arizona 85210-5258

                            Telephone: (602) 464-7300






     Indicate by check mark whether the registrant (1) has filed all reports
   required to be filed by Section 13 or 15(d) of the Securities and Exchange
    Act of 1934 during the preceding twelve (12) months (or for such shorter
 period that the registrant was required to file such reports) and (2) has been
       subject to such filing requirements for the past ninety (90) days.


                         YES     X               No
                               -----                  -----

                          Common Stock, $.01 Par Value
  As of October 31, 1996, 5,753,468 shares of the registrants common stock were
  outstanding of which 4,278,756 were held by non-affiliates of the registrant.
<PAGE>
                                TABLE OF CONTENTS

                      CRUISE AMERICA, INC. AND SUBSIDIARIES

<TABLE>
<CAPTION>
ITEM                                                                                                                   PAGE
---------------------------------------------------------------------------------------------------------------------------


                                                          PART I
                                                   FINANCIAL INFORMATION

<S>      <C>                                                                                                              <C>   
1.       FINANCIAL STATEMENTS

         Condensed Consolidated Balance Sheets............................................................................1

         Condensed Consolidated Statements of Operations..................................................................3

         Condensed Consolidated Statements of Cash Flows..................................................................4

         Notes to Condensed Consolidated Financial Statements.............................................................5

2.       Management's Discussion and Analysis of Consolidated Financial Condition
         and Results of Operations........................................................................................6
</TABLE>
<PAGE>
PART I.           FINANCIAL INFORMATION
ITEM 1            FINANCIAL STATEMENTS

                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                   A S S E T S

                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                  Unaudited
                                                                                -------------------------------------------
                                                                                    10/31/96                     4/30/96
                                                                                -------------------------------------------
<S>                                                                             <C>                         <C>  
Current Assets:

Cash and Cash Equivalents.....................................................        $   3,530                       2,341

Accounts Receivable, Net......................................................            3,989                       4,056

Inventories...................................................................           11,449                      11,752

Prepaid Expenses and Other Current Assets.....................................            1,502                         889
                                                                                ---------------             ---------------
         Total Current Assets.................................................           20,470                      19,038
                                                                                ---------------             ---------------
Rental Vehicles...............................................................          111,317                      79,094

Less Accumulated Depreciation.................................................           21,137                      15,576
                                                                                ---------------             ---------------
         Net Rental Vehicles..................................................           90,180                      63,518
                                                                                ---------------             ---------------
Property and Equipment........................................................           17,673                      17,426

Less Accumulated Depreciation.................................................            7,252                       6,916
                                                                                ---------------             ---------------
         Net Property and Equipment...........................................           10,421                      10,510
                                                                                ---------------             ---------------
Deposits and Other Assets.....................................................            2,771                       2,629
                                                                                ---------------             ---------------
                                                                                       $123,842                      95,695
                                                                                ---------------             ---------------
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
                                       1
<PAGE>
                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                        (In thousands except share data)
<TABLE>
<CAPTION>
                                                                                  Unaudited
                                                                                -------------------------------------------
                                                                                    10/31/96                     4/30/96
                                                                                -------------------------------------------
<S>                                                                             <C>                         <C>  
Current Liabilities:

Floor Plan Contracts..........................................................        $   2,915                       2,245

Current Installments of Rental Vehicle Financing..............................           20,038                      10,723

Current Installments of Long-Term Debt........................................            4,523                       3,023

Accounts Payable and Accrued Expenses.........................................            3,925                       1,980

Customer Deposits.............................................................              779                       4,605
                                                                                ---------------             ---------------
         Total Current Liabilities............................................           32,180                      22,576
                                                                                ---------------             ---------------

Rental Vehicle Financing, Excluding Current Installments......................           35,123                      29,561

Long-Term Debt, Excluding Current Installments................................           17,811                      19,412

Deferred Income Taxes.........................................................            5,152                         684

Stockholders' Equity:

Preferred Stock $1.00 par value; 1,000,000 shares authorized, none
issued or outstanding.........................................................               --                          --

Common Stock $.01 par value, 15,000,000 shares authorized,
5,753,000 and 5,740,000 issued and outstanding at October 31, 1996
and April 30, 1996 respectively...............................................               58                          57

Additional Paid-in Capital....................................................           24,992                      24,953

Retained Earnings (Deficit)...................................................            9,015                        (902)

Translation Adjustment........................................................             (489)                       (646)
                                                                                ---------------             ---------------
         Total Net Stockholders' Equity.......................................           33,576                      23,462

Contingencies.................................................................
                                                                                ---------------             ---------------
                                                                                       $123,842                      95,695
                                                                                ---------------             ---------------
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
                                        2
<PAGE>
                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

                      (In thousands except per share data)
<TABLE>
<CAPTION>
                                                               Three Months Ended                         Six Months Ended
                                                        ---------------------------------       -----------------------------------
                                                           10/31/96           10/31/95             10/31/96             10/31/95
                                                        ---------------------------------       -----------------------------------
<S>                                                     <C>                <C>                  <C>                 <C>   
Rental Revenue.........................................       $22,108              18,649               46,271               38,057

Sales..................................................        11,485              15,018               18,318               24,166
                                                        -------------      --------------       --------------      ---------------
         Total Revenue.................................        33,593              33,667               64,589               62,223
                                                        -------------      --------------       --------------      ---------------

Cost of Rentals........................................         9,023               7,661               16,597               13,683

Cost of Sales..........................................        10,978              13,866               16,784               21,595
                                                        -------------      --------------       --------------      ---------------
         Total Costs...................................        20,001              21,527               33,381               35,278
                                                        -------------      --------------       --------------      ---------------

Gross Profit from Operations...........................        13,592              12,140               31,208               26,945

Interest Expense.......................................         2,076               2,009                3,967                3,778

Selling, General and Administrative Expenses...........         6,177               6,050               12,856               12,253
                                                        -------------      --------------       --------------      ---------------
Earnings Before Income Taxes...........................         5,339               4,081               14,385               10,914

Income Tax Expense ....................................         1,658                 952                4,468                2,546
                                                        -------------      --------------       --------------      ---------------

Net Earnings...........................................       $ 3,681               3,129                9,917                8,368
                                                        -------------      --------------       --------------      ---------------

Earnings per Share (Primary and Fully Diluted).........       $   .62                 .55                 1.67                 1.47
                                                        -------------      --------------       --------------      ---------------

Shares Used in Calculation.............................         5,924               5,709                5,924                5,704
                                                        -------------      --------------       --------------      ---------------
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
                                        3
<PAGE>
                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                               Six Months Ended
                                                                             ------------------------------------------
                                                                                10/31/96                   10/31/95
                                                                             ------------------------------------------
<S>                                                                          <C>                        <C>  
Cash Flows from Operating Activities:
      Net Earnings.........................................................       $   9,917                       8,368
      Depreciation and Amortization........................................           8,921                       7,947
      Increase in Deferred Income Taxes....................................           4,468                       2,562
      Gain on Sale of Rental Vehicles......................................            (471)                       (737)
      Decrease (Increase) in Accounts Receivable, Net......................              67                        (638)
      Decrease in Inventories..............................................             303                       2,200
      Increase in Accounts Payable and Accrued Expenses....................           1,945                       1,027
      Increase in Floor Plan Contracts.....................................             670                       1,767
      Decrease in Customer Deposits........................................          (3,826)                     (5,759)
      Other, Net...........................................................            (711)                       (896)
                                                                             --------------             ---------------
      Net Cash Provided by Operating Activities............................          21,283                      15,841
                                                                             --------------             ---------------
Cash Flows from Financing Activities:
      Proceeds from Rental Vehicle Borrowing...............................          44,990                      41,463
      Repayment of Rental Vehicle Borrowing................................         (30,113)                    (26,515)
      Repayment of Long-Term Borrowing.....................................            (101)                       (116)
      Exercise of Stock Options............................................              40                          66
                                                                             --------------             ---------------
      Net Cash Provided by Financing Activities............................          14,816                      14,898
                                                                             --------------             ---------------
Cash Flows from Investing Activities:
      Purchase of Rental Vehicles..........................................         (46,596)                    (40,463)
      Proceeds from Rental Vehicle Sales...................................          11,933                      14,114
      Purchase of Property and Equipment...................................            (247)                       (142)
                                                                             --------------             ---------------
      Net Cash Used in Investing Activities................................         (34,910)                    (26,491)
                                                                             --------------             ---------------
Increase in Cash and Cash Equivalents......................................           1,189                       4,248
Cash and Cash Equivalents at April 30......................................           2,341                       3,091
                                                                             --------------             ---------------
Cash and Cash Equivalents at October 31....................................       $   3,530                       7,339
                                                                             --------------             ---------------
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
                                        4
<PAGE>
                      CRUISE AMERICA, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                        SIX MONTHS ENDED OCTOBER 31, 1996


NOTE 1.

In the opinion of management,  the accompanying unaudited condensed consolidated
financial  statements  contain all the  adjustments  (principally  consisting of
normal recurring accruals) necessary to present fairly the financial position of
Cruise America,  Inc. and Subsidiaries (the Company) as of October 31, 1996, and
the results of  operations  for the six month periods ended October 31, 1995 and
1996.

Certain items in the prior year financial  statements have been  reclassified to
conform with the current period presentations.

NOTE 2.

Supplemental Disclosures of Cash Flow Information (in thousands):

                                                      Six Months Ended
                                            ------------------------------------
                                               10/31/96              10/31/95
                                            --------------        --------------
Cash paid during the period for:

         Interest on Borrowings                  $   3,690                 3,313
                                            --------------        --------------


NOTE 3.

On May 14, 1987, one of the Company's  concession  operators commenced a lawsuit
entitled  Altman's  America,  et al. v. American  Land  Cruisers of  California,
Incorporated,  et al. in the Superior  Court of the State of California  for the
County of Los  Angeles.  The action rose out of a claim for an alleged  wrongful
termination  by the  Company of a sublease  agreement.  This case has been tried
twice.  The first trial  resulted in a judgement in the amount of  approximately
$3.5  million.  That  judgement was reversed on appeal and remanded for retrial.
The second trial  resulted in  judgements  for the  plaintiffs  in the amount of
$235,000  and a  judgement  for the  Company of  $634,000,  which  equaled a net
judgement  for the Company of  $399,000.  On July 18, 1996 the  Appellate  Court
reduced  the total  amount due to the  Company  by  approximately  $400,000  and
remanded the case for retrial. The Company intends to pursue all means to defeat
the case.

The Company is a party to various claims,  legal actions and complaints  arising
in  the  ordinary  course  of  business.  In  the  opinion  of  management,  the
disposition  of these  matters  will not have a material  adverse  effect on the
financial condition of the Company.
                                        5
<PAGE>
PART 1.           FINANCIAL INFORMATION
ITEM 2

                      CRUISE AMERICA, INC. AND SUBSIDIARIES

              Management's Discussion and Analysis of Consolidated
                  Financial Condition and Results of Operations
                        Six Months Ended October 31, 1996

This  Quarterly  Report  on  Form  10-Q  contains  forward-looking   statements.
Additional  written  or  oral  forward-  looking  statements  may be made by the
Company from time to time in filings with the Securities and Exchange Commission
or otherwise.  Such forward  looking  statements  are within the meaning of that
term in Section 27A of the Securities  Act of 1933, as amended,  and Section 21F
of the Securities Exchange Act of 1934, as amended. Such statements may include,
but  not  limited  to,  projections  of  revenues,   income,  or  loss,  capital
expenditures,  plans for future operations,  financing needs or plans, and plans
relating to products or services of the Company, as well as assumptions relating
to the foregoing.

Forward-looking  statements are inherently  subject to risks and  uncertainties,
some of which  cannot be  predicted  or  quantified.  Future  events  and actual
results could differ  materially  from those set forth in,  contemplated  by, or
underlying the forward-looking  statements.  Statements in the Quarterly Report,
including  the Notes to the  Condensed  Consolidated  Financial  Statements  and
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations,"  describe factors,  among others, that could contribute to or cause
such differences.  Additional  factors that could cause actual results to differ
materially from those expressed in such forward looking statements are set forth
in Exhibit 99 to the Company's July 31, 1996 Quarterly Report on Form 10-Q.

SEASONALITY

The Company's business is seasonal. In the first and second fiscal quarters, the
Company  historically  records profits.  In the third and fourth  quarters,  the
Company  historically  records losses. The Company's purchases of motorhomes for
the rental fleet are also seasonal, with the majority of purchases being made in
the first and fourth fiscal quarters. Due to the seasonality of rental and sales
operations, certain accounts fluctuate from quarter to quarter.

LIQUIDITY AND CAPITAL RESOURCES

As of October 31, 1996, the Company had current liabilities in excess of current
assets  in  the  amount  of  $11,710,000.  The  Company's  working  capital,  as
presented,  includes a  significant  portion of Rental  Vehicle  Financing.  The
Company's working capital does not, however,  include any portion of the related
assets--Rental Vehicles, even though a significant portion of these vehicles are
expected to be sold during the year through the Company's normal fleet rotation.
The Company  estimates that if these assets were  classified as current  assets,
the Company would not have a working capital deficit.

The Company believes that,  during the next year, cash generated from operations
and financing  available  from banks and other  financial  institutions  will be
sufficient for its capital and operating needs. At October 31, 1996, the Company
believes it is in compliance with all debt covenants associated with its various
financing agreements.

SIX MONTHS ENDED OCTOBER 31, 1996 AS COMPARED WITH
SIX MONTHS ENDED OCTOBER 31, 1995

Rental  Revenue  for the six  months  ended  October  31,  1996 was  $46,271,000
compared to  $38,057,000  for the six months ended  October 31,  1995.  This 22%
increase was due primarily to a 24% increase in revenue days offset in part by a
2% decline in average  revenue per day.  The increase in revenue days was due to
an 18% increase in average fleet size as well as an increase in  utilization  to
72% in 1996 from 68% in 1995 due to strong demand.
                                        6
<PAGE>
Sales for the six months ended October 31, 1996, were  $18,318,000,  compared to
$24,166,000,  for the same  period a year ago.  The  Company's  wholesale  sales
declined in part due to the Company's  conversion to a modular  motorhome fleet,
which has the effect of  extending  the  service  life of the rental  vehicle by
replacing the chassis.  Sales at retail were  affected by a continuing  industry
wide slow down in sales as well as a limited inventory due to the Company's high
rental fleet utilization.

Cost of Rentals as a  percentage  of Rental  Revenue was 36% in 1996 and 1995. A
slight  reduction in rental  rates  offset  economies  achieved  through  higher
utilization.

Cost of Sales as a percentage  of Sales was 92% for the six months ended October
31, 1996, compared to 89% for the same period a year earlier. A shift in mix was
primarily  responsible  for the increase,  as lower margin Rental  Vehicle Sales
increased to 65% of total sales in 1996 compared to 58% in 1995.

Interest  Expense for the six months  ended  October 31,  1996,  was  $3,967,000
compared to $3,778,000 in 1995.  Higher Rental  Vehicle  Financing was offset in
part by lower average interest rates.

Selling,  General and  Administrative  Expenses as a percentage of Total Revenue
was 20% in both 1996 and 1995.

THREE MONTHS ENDED OCTOBER 31, 1996 AS COMPARED WITH
THREE MONTHS ENDED OCTOBER 31, 1995

Rental Revenue for the quarter ended October 31, 1996 was  $22,108,000  compared
to  $18,649,000  for the quarter ended  October 31, 1995.  This increase was due
primarily to a 19% increase in revenue days. Revenue days increased due to a 17%
increase in average fleet size as well as a modest increase in utilization.

Sales for the  quarter  ended  October  31,  1996 were  $11,485,000  compared to
$15,018,000 in 1995. The Company's  conversion to a modular  motorhome fleet, an
industry  wide slowdown in retail sales as well as low  inventories  due to high
rental fleet demand all contributed to this decline.

Cost of Rentals as a percentage of Rental Revenue was 41% in both 1996 and 1995.
Economies  generated by a slight increase in utilization were offset by a slight
decline in revenue per day.

Cost of Sales as a percentage  of Sales was 96% in 1996 compared to 92% in 1995.
An increase in lower margin Rental  Vehicle Sales as a percentage of total Sales
impacted the Cost of Sales percentage.

Interest Expense for the quarter ended October 31, 1996 was $2,076,000  compared
to $2,009,000 in 1995. Lower interest rates were offset by higher Rental Vehicle
Financing during the period.

Selling,  General and  Administrative  Expenses as a percentage of Total Revenue
was 18% in both 1996 and 1995.
                                        7
<PAGE>
                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                              CRUISE AMERICA, INC.
December 6, 1996                              Eric R.  Bensen
                                              -------------------------------
                                              Eric R. Bensen
                                              Vice President
                                              Chief Financial Officer

December 6, 1996                              Randall Smalley
                                              -------------------------------
                                              Randall Smalley
                                              President
                                              Chief Executive Officer


                                        8