Rainbow Tourism Group (RTG) says the RTG Online Auction platform has since inception in June last year contributed positively to the group’s domestic tourism growth.
RTG auctions enable customers to bid and pay for accommodation, conferencing and banqueting packages online at affordable prices.
At the launch in June, RTG chief executive Tendai Madziwanyika said the auction concept was aimed at driving domestic tourism and offering affordable auction packages to both domestic and international tourists.
In an interview, RTG commercial director Shupai Marware said the market’s response to the RTG Online Auction has been positive and activity has been progressive as the group continues to create awareness of the platform.
“Our revenue target for the first six months was $50,000. We’re targeting $300,000 for the full year 2016,”he said.
Marware said the company managed to recoup the marketing investment in the RTG Auctions project within the first month of the launch.
He said to date the platform has achieved a 53 percent revenue conversion rate and this can be attributed to the marketing investment made to create market awareness of the product and its benefits.
“Unlike other online platforms and distribution channels such as Global Sales Agents and Global Access Platforms which require commissions and handling fees, RTG Auctions is profitable as all the revenues come directly to RTG.
“Again the platform has minimal running costs as it is hosted on the RTG website and managed internally through our E-Commerce department,” he said.
In terms of revenue split, Marware said 70 percent of the revenue is generated from domestic market, while 30 percent is from the foreign market.
Marware also said the group has other online channels managed through the E-Commerce function, which contribute three percent of total revenue, with an annual revenue target of just under a million dollars.
He said other initiatives in the pipeline include developing RTG Virtual online platform and strategic global partnerships.
“We’re continuously exploring technological innovations in an effort to deliver seamless, fast and affordable hospitality services to our customers,” he said. — Wires