Jasons Travel Media has issued a profit warning and says it has breached its banking commitments.
The travel information company expects to make a pre-tax loss, which it blames on weaker-than-budgeted sales in Australia, prompting it to cut jobs and reduce its operations across the Tasman.
The company is also in talks with ANZ Bank after breaching its banking commitments.
Chairman John Sandford says the firm has been hit by a depressed tourism market.
"We actually sell a lot of contracts forward and with the sort of downturn in tourism that we were having last year, we didn't sell as much advertising as we expected to sell and so that's reflected in our results, particularly in Australia."
Mr Sandford said the motel sector, which makes up 40% of the firm's revenue, has been the worst performing of all accommodation sectors.
There was strong price competition from hotels, he said, the supply of motels was increasing as more are being built and at the same time people have cut back on spending.
The March year result will also include one-off items and increased provision for bad debts in Australia and New Zealand.
Looking ahead, Jasons is cautiously optimistic, saying forward sales appear promising for the new financial year.