Tourism Holdings is forecasting a profit for the full year, despite a loss in the first half and conditions looking set to remain tough, particularly in its core European market.
The listed tourism operator lost $500,000 in the six months to December, compared with a profit of $4.2 million for the same period last year, due in part to the cost of merging with two rivals.
Revenue rose 8% to $108.5 million, with increases coming from its operations in Australia and the US.
The company says it is making good progress in reducing debt through savings made by merging with United Campervans and Kea Campers and reducing the size of its fleet.
Tourism Holdings chief executive Grant Webster says the second half is traditionally stronger and its offering a guidance of $5.7 million gross earnings for the full year.
He says the exchange rate is going to remain where it is for some time, but it affects people's perceptions about how expensive New Zealand is as a destination.
"The reality for us is we're continuing to put in changes and restructure the business to deliver a better profit result."
The company's shares fell 3 cents to 65 cents on Thursday.