- Economic uncertainty: While we expect a recovery of some form, the timing globally remains uncertain as global economic fluctuations are still prevalent and will continue to impact consumer spending, particularly demand for large discretionary purchases like motorhomes!
- Regulatory changes: Adapting to changing regulations driving the transition to low-emission commercial vehicles. We will continue to closely follow what happens in the US and carefully assess ongoing sustainability legislation. We also hope to see governments (particularly New Zealand) support growth for tourism and stop any barriers to success such as those we have seen in 2024 (increase in International Visitor Levy (IVL), increase in visa costs, etc).
- Technological advancements: Rapid technological advancements require continuous adaptation and investment in new ways of working, or as we say internally, new ways of winning (we are challenging ourselves every day to get more efficient and genuinely improve productivity).
Opportunities in 2025?
Despite the challenges, 2025 presents numerous opportunities:
- Market recovery: We see ongoing growth in tourism in all markets we operate in and are well positioned to give all customers what they are after. Leveraging our fleet growth from FY24 will be key, whilst keeping operational cost-out and efficiencies as a key focal point.
- Digital transformation: Leveraging our single platform strategy as well as generative AI and machine learning to enhance operational efficiency (management and front line) and customer experience.
- Ruthless focus on return on funds employed: The waves of planning uncertainty from the Covid-19 years may not have fully settled globally, however we continue our drive for effective deployment of capital. We can see the opportunities very clearly and have started the actions which will see us improve in 2025.
- Sustainability initiatives: Our shift from internal combustion engines (ICE) to low-emission vehicles has been impeded in recent years by the lack of technology we have been able to access. We are a big operator in the RV rental industry, but very small relative to the global commercial automotive industry, on which we are reliant on to enable our transition.
What will it take to kick off New Zealand’s economic revival?
To kickstart New Zealand’s economy, recognising that we are biased to tourism, here are a couple of starters:
- More effective promotion of exports: Actively promoting policies which encourage export activities. For tourism this could mean using the IVL funds for growth-orientated initiatives such as enabling Tourism New Zealand to be more competitive, incentivising new airline activity and building digital capability to improve customer journeys. The PM is a great ambassador for investment and tourism, we should leverage that more.
- Support for the democratisation of generative AI capabilities in government. We will lament the pace at which bureaucracy operates and yet at the same time we will jump on any small error. Let’s have some appropriate boundaries but let people in government at the frontline use the tools available to improve the way things operate. Whether it be accuracy of benefit payments, management of loans or grants or defining investment criteria for co-funding. Let’s support some managed risk taking.
How will a Trump presidency affect the geopolitical dynamics?
A Trump presidency could have several implications for geopolitical dynamics:
- Trade policies: With the discussion on tariffs, we could see a period of multi-nation protectionism and counter-responses. From a New Zealand perspective we could see some risk that products are redirected to countries like New Zealand or other nations we compete with.
- Foreign relations: Changes in diplomatic approaches with key countries, affecting international alliances and partnerships. Whether this flows through to an impact for business in the short-term we don’t know.
- Climate policies: Revisions to climate agreements and policies and country commitments, affecting global climate action efforts.
What are the concrete actions your company has taken to reduce climate change?
We’ve taken many steps to combat climate change and would encourage readers to review our FY24 Climate Statements to see what we are doing in detail, from renewable energy to waste reduction and the work we are doing at our new, repurposed site in Waitomokia, Auckland. We are also very pleased to have received a positive score from Forsyth Barr in their recent C&ESG ratings.
However, we are very aware that the single largest source of emissions from our business comes from customer journeys using our rental fleet, and that the transition to low emission is the single largest improvement we can make. Our industry has not adapted at the speed required to low emission vehicles that we would desire. We have continued to trial new products but remain limited by range which is critical for our type of travel.
Fundamental to RV travel is the freedom to travel as far as you want, when you want. Vehicles with a real-life range of about 200km are available (and we have some), but we really need double that before we see any uptake from our customers.
How are you increasing diversity in your business?
I will always remember a leader once saying it isn’t about policies or committees or special groups to consider what needs to be done for improved diversity, it just takes leaders to act and do what’s right.
Overall, I’m pleased with the improvement in diversity in our broader leadership group, which gives me much greater confidence in the future state for the business. We definitely have a much wider array of leadership backgrounds than even two years ago. What we aren’t doing is tracking and reporting all those changes well enough. In FY25 we have got better at that and look forward to sharing some more details in our next annual report.
What is your new year’s resolution?
There should be a long list!
One I really want to nail is to become a master at planning using tech, particularly the Microsoft suite of tools. It’s time to cut to the chase, keep things fun and be as efficient as technology will allow me to be. The extra time I get can be used for all sorts of things …
Where and how are you holidaying this summer?
This summer, as with a few other years, I will be enjoying some time in Whitianga, keeping in touch with our incredible crew working over summer and also engaging with a revolving door of visitors, days in (on) the water and catching up on some enjoyable reading and listening.
What would you recommend as a good podcast to listen to over summer?
For human inspiration, Dessert Island Discs. Check the archives for some incredible people and their special life stories.
For product and business inspiration, How I built this – Guy Raz. I have only listened to a few, but great stories, told really well.
For the last part of summer holidays before returning to work, The Economist podcast. One of the best sources of quick, easy and informative updates on the world, business, politics and technology.
