Britz rival's collapse offers slight comfort

The collapse into receivership of a small campervan competitor in the Australian market is a mixed blessing for tourism operator Tourism Holdings.

While it makes for a clearer run at the market across the Tasman, Tourism Holdings is not immune to the tough conditions which claimed NQ Australia Rentals.

"The total business environment in the motor home market in Australia has been very tough and very, very competitive," Tourism Holdings' group general manager (commercial), Sean Murray, said.

Tourism Holdings has around 1100 motor homes in Australia under the Britz and Maui brands.

"NQ had around 200 vehicles so the dynamics are quite different," Murray said, adding another smaller operator - Hertz Motorhomes, with around 400 vehicles - closed its Australian doors last year.

"Those smaller companies going under is a part of a natural adjustment that's going on in the market. It's been very tough."

Murray said there is still a lot of competition in Australia and spare capacity in the market. But he was adamant Tourism Holdings would not be looking to buy NQ.

"[Their receivership] will reduce some of the highly competitive and unsustainable business practices that had been adopted by some businesses. At the end of the day, issues of deep discounting, poor service and poor product delivery can't be sustained long term," Murray said.

"[The benefit to us] is the good trading sense that will take place in the market which will help improve sentiment."

He said while Tourism Holdings would always like to be making more money, the Australian business was performing well.

Encouraging signs in Australia included the market rationalisation, Australia's rebound as a visitor destination and a rise in popularity of motorhome holidays.