Tourism Holdings Limited has delivered a tale of two markets in its latest results, with New Zealand operations firing on all cylinders while the Australian RV scene faces significant headwinds that mirror broader industry challenges.

The trans-Tasman tourism giant, which operates brands including Britz, Maui, and Mighty, posted a statutory loss of $25.8 million, though $54.5 million in one-off write-downs meant the underlying business performed better than headline figures suggest. The real story emerges in the contrasting performances across its core markets, revealing the uneven nature of post-pandemic recovery in the caravan and motorhome sector.

Analysis is based on THL's FY25 annual results presentation and growth roadmap released in August 2025.

New Zealand: The Success Story

THL's New Zealand operations emerged as the standout performer, delivering exactly what RV rental operators want to see. Despite expanding their fleet by 22%, the company managed to keep revenue per vehicle steady, suggesting strong underlying demand from both domestic and international travellers.

The numbers tell an encouraging story for the Kiwi market. Rental revenue jumped 21% to $134.4 million, while the division achieved a healthy 16.2% ROFE (return on funds employed - profit as a percentage of capital invested) - well above the company's 15% target.

Perhaps most tellingly for the broader industry, THL's New Zealand fleet remains 30% below pre-COVID levels, indicating there's still plenty of room for growth as international tourism continues its recovery.

The company has been busy expanding capacity, opening a major new Auckland facility at Waitomokia that consolidates operations and significantly increases their ability to service the crucial international gateway market.

Australia: A Tougher Road

The Australian story presents a more sobering picture that many in the local RV industry will recognise. While rental operations performed reasonably well with 11% revenue growth, they achieved just 5.1% ROFE compared to New Zealand's 16.2% - well below THL's target.

The retail side tells a grimmer story. RV sales volumes dropped 13% to 1,935 units, while profit margins compressed from 9.9% to 8.4%, the kind of margin squeeze that keeps dealers awake at night. This pressure stems largely from THL's aggressive inventory clearance, as it worked to shrink stock levels from a post-COVID peak of $110 million down to $72 million.

Faced with this retail downturn, THL has made some tough decisions: closing its Melbourne manufacturing facility, discontinuing caravan production entirely, and planning to "rationalise" its product lines and brands - industry speak for cutting back on offerings that aren't pulling their weight.

These moves reflect broader challenges facing the Australian RV manufacturing sector, where production costs have become increasingly difficult to manage. THL found that manufacturing in New Zealand works out 20% cheaper than Australia even after factoring in shipping costs.

Tourism Recovery Patterns

The divergent performance reflects different tourism recovery patterns across the Tasman. Australia is expected to return to pre-pandemic international visitor levels by 2026, helped by the country becoming more affordable for European travellers as currency movements work in favour of tourism.

New Zealand faces a longer path back, with recovery not expected until 2027. However, THL's forward bookings suggest this timeline might be conservative, with rental revenue currently tracking 25% higher than the same period last year.

International visitors remain crucial for both markets. THL has strategically relocated its Perth operations to larger premises and has Sydney relocation plans underway, specifically targeting increased capacity at key international gateway locations.

Manufacturing Challenges

The manufacturing side reveals some uncomfortable truths about Australian production costs. THL's decision to consolidate manufacturing into its Brisbane facility while closing Melbourne operations reflects industry-wide pressures on local manufacturers.

The company's experience - finding New Zealand production 20% cheaper despite shipping requirements - highlights the cost challenges facing Australian RV manufacturers. This isn't just a THL problem, but an industry-wide issue that affects competitiveness against imported alternatives.

Looking Forward

Despite the Australian retail challenges, THL remains bullish about the ANZ market's long-term prospects. The company plans to focus its next two years of fleet investment primarily on Australia and New Zealand, viewing current difficulties as cyclical rather than structural.

There are positive signs emerging. Dealer inventories, which had been problematically high across the industry, are reportedly returning to more balanced levels. Interest rate cuts across both countries should also help with RV financing, particularly important given the sector's reliance on consumer credit.

For the broader Australian RV industry, THL's experience serves as both a cautionary tale and a roadmap. The company's aggressive inventory reduction and product rationalisation, while painful, demonstrates how larger operators are adapting to changed market conditions.

The contrast between New Zealand's strong performance and Australia's struggles also suggests that recovery patterns aren't uniform across the region, with local market dynamics playing a crucial role in determining outcomes.

As the industry works through these post-pandemic adjustments, THL's mixed results provide a realistic snapshot of where things stand: promising in some areas, challenging in others, but with underlying fundamentals that suggest better times ahead for operators who can navigate the current turbulence.


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