The Sunday News
ZIMBABWE Stock Exchange-listed hospitality concern, Rainbow Tourism Group, has dismissed allegations that their stay now, pay later model was exposing the group to default risk, saying they had a stringent vetting process in place.
Economists had raised a red flag over the model saying it was susceptible to high defaults.
However, RTG corporate communication and innovations manager Mrs Eltah Sanangura said the model had generated interest and gross revenues amounting to $510 000 and 95 percent of these amounts had already been paid.
“The low level of default is due to the stringent vetting process in place to ensure that those guests that are afforded the opportunity to use the stay now pay later platform are credit worthy,” said Mrs Sanangura.
She said the model allowed for flexible payment terms to their customers.
When the model was introduced, RTG said this was the next stage of domestic products aimed at making tourism accessible to Zimbabweans.
“The payment terms are over a period of three months,” she said.
Speaking on strategies employed by the group to stay competitive, Mrs Sanangura said despite the reduced client activity due to a depressed economy, RTG had executed strategies that have seen the group operating above its fair share, although she did not divulge the nature of the strategies.
“RTG has not only managed to defend its market share but has implemented strategies that have seen the group operating above its fair share,” she said.
The group surpassed its historical market share of 25 percent, indicating the effectiveness of the strategies the company was embarking on to turn around its fortunes.
Mrs Sanangura said the hospitality concern was optimistic about the future, with recent trade updates reflecting their ability to achieve a profitable performance.
“Our focus remains that of ensuring that this performance is sustained for the benefit of our various stakeholders,” she said.
