- Says flexible work arrangements fuelling off-season travel a factor
- Notes return to pre-COVID-19 lead times and rise in short lead-time bookings
- Anticipates growth in RevPAR particularly during off-peak seasons
GAZETTE REPORTER
In its latest business update, Chobe Holdings Limited has revealed a significant uptick in demand for luxury travel experiences.
The company, which is a prominent player in the ecotourism industry, attributes this surge to evolving international travel trends, with flexible work arrangements fuelling off-season travel demand.
Despite lingering uncertainties in global markets, Chobe remains optimistic about the future, citing a robust recovery from the pandemic-induced downturn.
Online tour operators
“We’ve witnessed a remarkable increase in demand for luxury travel experiences, driven by evolving travel patterns and flexible work practices,” states Chobe Holdings Limited in its recently released 2024 Business Update.
The company notes a return to pre-COVID-19 lead times and a notable rise in short lead-time travel bookings. Additionally, there has been a substantial recovery in demand from online tour operators.
While occupancy remains a vital performance metric, Chobe emphasises a strategic shift towards enhancing Revenue per Available Room (RevPAR). “Our focus is increasingly on boosting RevPAR, leveraging the strong demand we’ve experienced in the 2023 financial year,” says the update.
Geopolitical tensions
The company anticipates a growth in RevPAR, particularly during off-peak seasons, as occupancy rates normalise and available inventory expands.
Despite geopolitical tensions in Europe and the Middle East, Chobe reports no discernible impact on forward reservations or revenue forecasts.
However, the inflationary effect of uncertainty, coupled with supply chain disruptions and soaring costs of essential commodities like fuel and food, poses challenges to the company’s operations.
Asset upgrades
To maintain competitiveness, Chobe says it continues to invest in upgrading its asset base. “We’re committed to enhancing our product offerings through strategic asset upgrades,” it notes.
The company highlights ongoing projects, including a comprehensive rebuild of Savute Safari Lodge that is aimed at bolstering long-term profitability despite short-term setbacks.
The company’s recent investments include acquisition of a Cessna 208EX Caravan and various property enhancements, totalling approximately P65 million. Chobe emphasises prudent financial management, carefully considering funding options, including debt, to support its growth initiatives.
Dividend policy
The dividend policy remains conservative, ensuring dividends are adequately covered by earnings and aligned with the Group’s ongoing requirements.
Chobe acknowledges the critical role of tour operators in driving revenue growth and international exposure. “Tour operators are integral to the tourism value chain, and we value our longstanding partnerships,” the company states.
It underscores its commitment to equitable partnerships, offering competitive rates to tour operators and actively pursuing market diversification beyond traditional markets like the United States and Europe.
Resilient business model
Meanwhile, Chobe Holdings Limited remains bullish on the future of luxury ecotourism, leveraging evolving travel trends and strategic investments to drive revenue growth.
Despite challenges posed by geopolitical uncertainties and supply chain disruptions, the company’s resilient business model and prudent financial management position it for sustained success in the global tourism market.