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NewsDay

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Online channels contribute 3% of RTG e-commerce revenue

Business
Rainbow Tourism Group (RTG) says its online channels will contribute 3% to total e-commerce revenue and the target is close to $1 million.

Rainbow Tourism Group (RTG) says its online channels will contribute 3% to total e-commerce revenue and the target is close to $1 million.

BY TATIRA ZWINOIRA

This comes as RTG is seeking to boost additional revenue through e-commerce platforms.

Speaking to NewsDay recently, RTG sales and relationships manager, Pride Khumbula said RTG was trying to offer services at a faster rate to satisfy clients.

“We have other online channels managed through our e-commerce function, which contribute 3% to total online revenue, with an annual revenue target of just under a million dollars. We are continuously exploring technological innovations in an effort to deliver seamless, fast and affordable hospitality services to our customers,” he said.

“Other initiatives in the pipeline include developing RTG virtual online platform and strategic global partnerships.”

The first of its e-commerce platforms was the launch of the RTG online auction website in June that has since managed to achieve an activity revenue of $21 000 at a 53% activity revenue conversion rate on an upward trajectory.

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The group is trying to tap into recent statistics that show that Zimbabwe has an Internet penetration rate of 47%, with Internet subscriptions totalling 6,1 million as at June 2015.

“At this stage we are not expecting to make any profit, as the platform is in its infancy having been on the market for just five months.

“At introductory stage of any product a significant marketing investment is critical to ensure awareness,” Khumbula said.

“Government, through the Ministry of ICT, and the telecommunications sector have invested heavily in ICT and telecommunications in response to the digital age in which the world now exists in, this is where the future of commerce lies.”

She said anyone who does not jump onto this digital super highway “may be out of business in the future”.

In the first quarter results ending June, the average bed occupancy levels in the hotel industry declined by 2 percentage points from 31% to 29% in 2015.

Notable decreases were chiefly recorded in Nyanga, Midlands and Mutare/Vumba. This decline is a result of low conferencing business, which is usually the major driver.

RTG recently finished refurbishment of the Harare International Conference Centre (HICC) at a cost of $400 000 ahead of the International Conference on Aids and STIs in Africa (ICASA) 2015 in a move to help spruce up its conferencing revenue streams.

Through its e-commerce services, RTG are seeking to further add to those figures to compete with its competitors in an industry that is in its busiest season.