Business

Friday September 25, 2009

Reliance eyeing 15% sales growth for travel division


KUALA LUMPUR: Reliance Pacific Bhd targets a sales growth of 15% for its travel division in its current financial year ending Mar 31, 2010 (FY10), boosted mainly by its online travel services portal, PYOTravel.com.

According to the company’s annual report, the travel division contributed about 90% or RM493.56mil of its total revenue of RM553.62mil for FY09.

Managing director (travel division) Tan Sin Chong said Reliance would be adding more packages to its web portal to attract more customers.

»We want to build a strong foundation in Asia before expanding« TAN SIN CHONG

“We will be enhancing our (online) portal by providing more product offerings such as more hotel room options and more land packages in Asia,” Tan said after the company AGM yesterday.

“We plan to include more two- and three-star hotels because there is high demand for them. We will be offering other attractive packages as well but cannot reveal what they are for the time being,” he added.

Tan said Reliance expected to achieve sales worth RM20,000 in hotel rooms per month by FY10 through PYOTravel.com.

“Currently we are selling about RM10,000 in hotel rooms per month,” he said. Sales through its online portal presently account for about 20% of its travel division’s total sales revenue.

Tan said he was confident that the online business would account for 50% of the travel division’s total sales revenue within the next three years.

“Making travel arrangements online is becoming increasingly popular. It is more accessible, scaleable and convenient. It is also much easier to reach a wider audience this way,” he said.

Tan said Reliance had no immediate plans to add destinations outside of Asia to PYOTravel.com.

“We want to build a strong foundation in Asia before expanding. We know the Asian market well and know the consumers’ needs.

“For our offline travel business, we also plan to reinvent our offerings. We hope to offer more diversified experiences and packages. After all, travelling is all about the experience,” he added.

He also said he was optimistic about the outlook of the travel sector in the second half of FY10.

“Economic conditions are improving and the Influenze A(H1N1) epidemic also seems to be waning. From October to December, travelling also tends to pick up so we expect a better second half for FY10.”


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