Panorama enters franchising business to boost sales

The Jakarta Post, Jakarta

To expand its business while curbing costs, Panorama Tours, a subsidiary of publicly listed tour and travel holding company PT Panorama Sentrawisata (Panorama Leisure), plans to enter the franchising business to tap into the market potential in the country's major cities.

Panorama Tours managing director Rama Tirtawisata said Friday that other travel agents, especially those outside Jakarta, could use the company's brand Panorama World under franchising arrangements.

"This opportunity will also help travel agents thrive in the industry by leveraging our well-known reputation without them having to struggle on their own, which is not easy," he told The Jakarta Post.

According to Rama, the company's decision to venture into franchising was part of its business expansion plan while exploring a potentially rich, untapped market.

"We are aware that there are many cities across the archipelago with a lot of market potential that we have yet to tap into, particularly after the introduction of regional autonomy, which has spurred economic growth in some regions," he said.

Panorama Tours currently controls between 5 and 8 percent of Indonesia's travel market involving at least 150 tour operators, and the company expects to raise its market share to 20 percent next year, with the franchising plan.

"With this franchising venture, Panorama Tours hopes there will be a 30 increase in growth in the company's sales," Rama said, adding that the company hoped to have 20 franchise outlets by the end of this year and a total of 100 outlets within the next three years.

The Panorama World franchise, he said, would cover all the travel packages sold by the Panorama group of companies, including the Oasis Hotel in Bali and Caldera Indonesia Outbound Travel.

"Our business partners will also benefit from training and education programs from our Panorama Academy, which is part of the franchise deal," Rama said.

Meanwhile, Panorama Leisure, the holding company, reported a 26 percent increase in revenue to Rp 810 billion during the January to September period from Rp 641 billion during the same period last year.

This increase resulted in a 250 percent hike in net profit to Rp 7.8 billion from Rp 2.2 billion. Panorama Leisure's consolidated sales are expected to exceed Rp 1.2 trillion this year. (amr)