Business

Thursday June 4, 2009

Reliance Pacific still positive on sale


KUALA LUMPUR: Reliance Pacific Bhd targets to at least maintain a sales growth of about 37% for its travel division for the current financial year ending March 31, 2010 (FY10).

For FY09, this division accounted for 90%, or RM489.3mil of its total revenue of RM548.9mil.The division contributed RM362.8mil to total revenue in FY08.

Managing director (travel division) Tan Sin Chong said sales growth this year would likely be driven by online sales.

“We will be enhancing our online system for quicker and better reach as it is also one of the distribution channels for us to reach beyond Malaysia,” he said after Reliance renewed its franchise agreement with four franchisees in a multiple agreement signing ceremony yesterday.

The four franchisees are Maser Travel & Tours Sdn Bhd, Syarikat Rahman Brothers Travel & Tours Sdn Bhd, Limora Travel & Tours Sdn Bhd and Faza Holidays.

Tan Sin Chong... We will enhance our online system for quicker and better reach

“In FY09, the online business accounted for 20% of the travel division’s total sales and will likely contribute 30% to the division in FY10,” Tan said.

To a question, Tan said the A(H1N1) flu’s impact on the travel industry was not as severe as the Severe Acute Respiratory Syndrome (SARS) epidemic a few years ago.

“The impact on travel was greater during the SARS scare. During that time, there was basically no business as the disease spread quickly. It stopped people from travelling totally,” he added.

Tan said central America was not a very popular destination for locals while business people would still need to travel.

“However, I think during the second half of FY10 particularly after September, travel demand will be better,” Tan said, adding that travel picked up immediately after SARS was contained.

On its Reliance Travel Franchise System, Tan said the group currently had 18 franchisees and hoped to sign another seven in FY10.

“We are currently in the midst of finalising negotiations with four companies.

“We are also looking for another three possible franchisees from Sabah and Sarawak,” he said, adding that it planned to expand its franchise overseas by 2012, starting with Indonesia.


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