Page 40 - Gondwana Collection Namibia Value Creation Report 2021

GROWING OUR VALUE

Growth Product diversification Value chain integration and synergies

We grow our business Capacity The proof of our success We diversify our offerings To be a one-stop-shop, we need to present all our

at a measured pace to Capacity refers to the number of Our year-on-year annual revenue growth is a measure that to benefit from market brands together as one Gondwana.
determines if we are achieving overall growth. This year’s
available bed nights across our
ensure our long-term accommodation offerings. revenue was affected by the Covid-19 pandemic. opportunities and We have restructured Gondwana to present a unified front for customers. Through the Gondwana Travel Centre, launched in 2021,
Average annual growth 10%
sustainability. Drivers: We expand our capacity by constructing or purchasing protect Gondwana from customers can use a single point of contact to facilitate their entire trip, from travel advice, car rentals, accommodation bookings, tours and
events. This helps customers streamline their planning experience and lower costs while earning Gondwana more money and improving our
new properties or by developing our existing properties. We Revenue (N$’million) margins. The data we collect also enhances our understanding, connection and engagement with customers.
Hospitality is a fixed cost, volumes-driven business where enter into commission-earning marketing agreements to sell overreliance on a single The Gondwana Travel Centre enables us to work with other players in the tourism ecosystem, including other accommodation providers.
profitability is directly linked to the drivers of capacity, additional bed nights at a lower fixed cost. Growing capacity 500 We have also expanded our geographic footprint by offering travel packages and solutions in the SADC region.
occupancy and yield. Our fixed cost model is highly scalable, is a constant focus for the business. 400 industry.
and incremental improvements in occupancy and yield can
make a big difference to profitability. Occupancy 300 While Gondwana did not expand product offering in 2021, we The proof of our success
The impact of Covid-19 continues to prevent us from achieving Occupancy refers to the number of occupied bed nights divided 200 laid the foundation for new digital products in the coming years. We view revenue as an indicator of our success in integrating our businesses and leveraging synergies. Our dependence on
our desired occupancy levels, while our fixed costs remained by the total number of available bed nights. Gondwana will keep an eye on diversification and expanding operators has declined from 69% in 2017 to 40% in 2021.
relatively high. 100 our footprint. Our strategy includes tapping into different
Drivers: Our occupancy levels vary, depending on the type of business opportunities with lower capital outlays. These include
accommodation, location, guest experiences and seasonality. 0 management agreements with other accommodation providers.
0% We increase our occupancy through direct and indirect sales 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 We are considering diversifying our products and locations to Revenue for 2021
and target sales drives in our low season.
withstand potential risks, including new Covid-19 waves and
growth in Pre-Covid, we broke even at an occupancy rate of 38%. We aim variants. Ultimately, this means looking beyond tourism to other
CAPACITY for an annual occupancy of 50%. Performance sectors where we can use our strong brand to promote new GONDWANA TRAVEL CENTRE NAMIBIA2GO
products and services.
(2020: 7%) Yield Our performance in 2021 was impacted by the slow recovery of
the local and international tourism market In 2021, we bolstered our car rental offering, Namibia2Go, by N$20.8 million N$13.9 million
Yield refers to the total net revenue earned per occupied bed purchasing new vehicles. This proved to be a sound business
16% night. It is calculated as net revenue after commissions and While our occupancy levels are slightly lower, the yield improved decision as demand for car rentals now outstrips supply. We 2020: N$20.2 million 2020: N$4.5 million
from 2020’s lows. We could not grow at our historic rates. We
discounts, divided by the total amount of guests.
plan to increase our fleet in the future.
OCCUPANCY Drivers: Our yield is driven by our rack rate or the advertised did not increase our capacity in 2021, although we benefited Our focus will be to continue to operate as a sustainable 2020 refers to the combined revenue of
from the increased capacity from our newest lodge, Etosha King
The Cardboard Box Travel Shop and Safari2Go
price of the bed. This varies across the company because of our tourism company. We believe that travellers are increasingly
(2020: 17%) Nehale.
range of accommodation. Yield is reduced by discounts given or looking to support companies that operate responsibly. We
the commission paid. Direct bookings produce a higher yield. We promoted our offerings to Namibians and regional travellers have always invested in our people, communities and the
while building our brand in international markets. We are environment, which will not change. Efficiencies
N$ 1 963 Our yield increases when guests spend on additional activities. experiencing increased interest from eastern Europe and Russia, Read more about the main trends we have seen over the past
When our properties are at capacity in our high season, we
which are potentially huge markets for Gondwana.
AVERAGE YIELD increase our yield through our business mix and complementary year on page 22. We maximise our profits by cutting costs to improve the value of every dollar we spend.
offerings like game drives, guided hikes, or sleep-outs. We track our costs to decrease our cost to income ratio over time. This means leveraging our head office functions, buying power,
(2020: N$1 918) logistics and supply chains. Efficiencies also have a positive environmental impact regarding less waste and lower food miles
The proof of our success
Growth 2% because of local procurement.
We consider an increasing yield per guest as proof that
our vertical and horizontal integration into the tourism Our centralised support function servicing all our properties allows us to unlock significant operational efficiencies. This enables us
value chain is successful. to scale our business without significantly increasing our fixed cost base. We are exploring how technology, including automation
and digitalisation, can improve our synergies and cost savings.
The proof of our success
We measure the success of our cost-efficiency initiatives by the amount of money we spend per guest bed night. Our
customer relationship management (CRM) system and customer feedback and data analysis options through TrustYou
implemented by the Lab allows us to profile our customers and create upselling opportunities. We should also understand the
lifetime value of our top customers.

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