THL maintains profit outlook

MOTORHOME rental specialist Tourism Holdings Limited (THL) has issued a trading update, telling investors that at this stage there is no change to its earlier guidance of a net profit for the 2022/23 financial year of more than $48 million.

The company, which completed its merger with Apollo Tourism & Leisure late last year ( TD 18 Nov 2022), said that despite broader macroeconomic challenges, “the travel and tourism industry has remained resilient and is experiencing strong growth”.

THL said forward booking activity for the 2023 high season in its Northern Hemisphere businesses showed an increase in international volumes, alongside a reduction in domestic demand.

In Australia and New Zealand it’s a similar story, with the 2023/24 high season showing growing international booking levels along with weaker domestic activity.

THL said it remains positive heading into 2024/25, with expectations that international travel volumes from most markets will return to pre-COVID levels late next year.

The recovery of inbound from China will take longer, the company added, while deteriorating economic conditions “may influence travel trends in favour of lower-cost destinations over the short to medium term”.

THL also highlighted broader tourism trends towards “regenerative, lower carbon, sustainable holidays” which, while apparent, “remain far from tipping points”.

RV rental yields remain strong, with Australian figures about double the results in the corresponding period in 2019.

Vehicle sales margins have also started softening in all markets, declining from recent peaks.