19 Jul 2013

Receivership may reduce campervan market over-capacity

7:04 am on 19 July 2013

Tourism Holdings says while the receivership of Pacific Horizons will reduce the overcapacity in the market, it expects any potential competition will be deterred by the industry's low returns.

Pacific Horizons went into receivership earlier this week and Tourism Holdings says it approached the receivers, KordaMentha, in a bid to snap up the company's customers.

But THL is not interested in Pacific Horizon's fleet because it's selling its own surplus stock.

Chief financial officer Ian Lewington says while THL did not pick up a large number of customers initially, it expects to gain some of the summer bookings and it will work with its contacts in the travel agent market to pick up the slack.

He said Pacific Horizons was about a 5% player in the overall campervan market and its demise reinforces that businesses in that market need to have sufficient capital.

Mr Lewington said people need to take that into account when they're dealing with companies.

He said there has been a plateau in the market and the last couple of years have been difficult due to the European financial crisis and the UK similarly affected because they are the key markets for motorhome customers.

Mr Lewington said the returns in the industry would be likely to deter new companies and lending criteria have tightened up substantially in the last few years.