Motorhome inroads drive record profit
Booming motorhome rentals at home and abroad have contributed to a record $30 million annual profit for Tourism Holdings Ltd (THL).
Higher than expected local rentals resulting from the British and Irish Lions rugby tour, a better shoulder season, and expansion in the United States all contributed to the 24 per cent increase in net profit.
The company reported revenue of $341m for the year to June, and paid a dividend of 11 cents per share.
THL chief executive Grant Webster said the Lions tour added about $500,000 in profit and there would be a flow-on effect into the next financial year, which was shaping up to show a forecast profit of between $36 and $39m.
Just over half of revenue for 2017 came from New Zealand, with about 20 per cent from the US and the remainder from Australian and the United Kingdom. THL’s US operation is now almost as large as its local rental fleet of 2200 vehicles, making it number two in the American rental motorhome market.
The company’s foray into the US began in 2010 with the purchase of rental company Road Bear.
Late last year it bought Californian motorhome sales and rental company El Monte, as well as Roadtrippers, a US travel app company that has 2.5 million active users.
Webster said sales of El Monte’s older fleet provided a much higher return than expected and he is predicting strong growth in a market where bigger is most definitely better.
‘‘Our largest vehicle [in New Zealand] barely gets to the smallest vehicle in the US. On a New Zealand driver’s licence you can go to the US and drive something that’s the size of a standard bus here.’’
THL is continuing to promote Mighway, a peer-to-peer operation allowing motorhome owners to rent out their vehicles.
More than 500 Kiwi owners have signed up so far and Webster said Mighway had paid them more than $1m last year.
Mighway was also successfully launched in the US in May and Webster said he could see it expanding to Australia, Europe and the UK in time.