Online Reporter
Tawanda Musarurwa
THE Rainbow Tourism Group (RTG) is pivoting beyond its traditional bricks-and-mortar hospitality model, unveiling a new digital strategy that could significantly reshape its revenue streams and long-term business identity.
Speaking during an analyst briefing on Tuesday, RTG chief executive officer Mr Tendai Madziwanyika said the group had launched an application programming interface (API) integration that allows it to tap into a vast, global inventory of hotel rooms — far beyond its own portfolio.
“RTG is building a platform that extends beyond its own hotels,” said Mr Madziwanyika. “What we are now doing is linking up with a global provider of rooms.”
Through this integration, RTG gains access to more than 56 000 hotel rooms across Africa, with the broader network extending to over 500 000 hotels and millions of rooms worldwide.
The system enables RTG to offer customers a far wider range of accommodation options through its own booking channels, effectively positioning the company as a travel distribution platform rather than solely a hotel operator.
At the core of this strategy is the use of APIs – software interfaces that allow different systems to communicate seamlessly.
In practical terms, this means RTG customers can now browse and book rooms from a global pool of properties directly through RTG platforms.
“You can actually access that framework of hotels, which is over 13 million rooms globally. We have just launched it today,” Mr Madziwanyika said.
The financial model underpinning the initiative is commission-based.
RTG will receive net rates from the global provider and earn a margin on each booking processed through its system.
“We will get a commission on every booking that comes through our portal into their ecosystem,” he explained, adding that the provider’s network spans tens of millions of rooms across more than 500 000 hotels worldwide.
The move signals a strategic shift toward asset-light revenue generation, allowing RTG to monetise travel demand without the capital intensity associated with owning or operating physical properties.
Mr Madziwanyika indicated that the contribution of this new business line could become substantial in the near term, potentially altering how the market defines RTG’s core operations.
“I think in a year when we meet again, you’ll be asking us, what is your core business?” he said. “Because I think the contribution of this business is going to be quite substantial.”
The development comes as hospitality players globally increasingly embrace digital platforms to diversify income streams and remain competitive in a rapidly evolving travel ecosystem.
This strategic shift is unfolding against a backdrop of solid, though evolving, financial performance for the group.
For the year ended December 31, 2025, RTG posted a 13 percent increase in revenue to US$50,3 million, underpinned by a 28 percent surge in foreign-currency earnings to US$24,1 million.
Occupancy rose to 57 percent from 54 percent, while average daily rates improved to US$109, pushing revenue per available room (RevPAR) up 13 percent to US$62.
These gains reflect strengthening demand across key tourism segments, particularly in Victoria Falls and the conferencing market.
The group also expanded its asset base, with total assets rising 28 percent to US$82,7 million following acquisitions including Montclair Hotel and Casino, MSK House in Cape Town and Batoka Safaris, which together contributed 8 percent of total revenue.
Despite these gains, profit after tax declined to US$3,25 million from US$5,36 million, largely due to acquisition-related costs and increased financing expenses as RTG invested for growth.
Still, the group maintained shareholder returns, declaring a total dividend of US$2,8 million for the year, while continuing to invest in refurbishment, sustainability initiatives and expansion projects expected to drive future earnings.
