Tourism Holdings says its first-half result will be down on last year's as sales suffered partly because of the Rugby World Cup and the weakening US dollar.
Addressing shareholders at the company's annual meeting in Auckland, chief executive Trevor Hall said that while first-quarter trading had met expectations, sales duringOctober and November had been "disappointing".
"It is too early to tell whether this will be characteristic of the full three months."
One factor that had affected trading over the period was New Zealand and Australian rugby supporters squeezing airline seat capacity from the Northern Hemisphere.
"The ongoing collapse" of the US dollar against the euro was also making the US a more attractive tourism destination.
"New Zealand and Australia have to work harder to hold market share in the Northern Hemisphere."
Hall said Tourism Holdings' December half result would reflect the difficult trading conditions as well as increased investment in the company's CI Munro caravan and motorhome manufacturing division, which has been shifted from Otorohanga to Hamilton, and in its new Explore More rental model.
"These conditions will result in a trading profit that is marginally behind last year based on current information and forward bookings."
Last year the company reported a first-half trading profit of $25.9 million and a net profit of $4.7 million.
Meanwhile, chairman Keith Smith yesterday announced the appointment of finance industry veteran Graeme Wong to the company's board.
Shares in Tourism Holdings - which owns coaches, rents vehicles and operates attractions including Kelly Tarlton's - closed unchanged yesterday at $2.34.
