TRAVEL services company Reliance Pacific Bhd is planning to tap into the Indonesian travel market after opening an additional five franchise outlets in Malaysia by the end of the year.

The company, which currently has 23 travel agencies nationwide and five marketing offices globally, believes franchise outlets, both domestically and overseas will increase its brand power and market share in the travel industry.

"We are going into the franchise model to further create our brand as it is a competitive industry, more so with the travel online retail industry," its travel division managing director Tan Sin Chong said.

He was speaking to reporters after the memorandum of understanding signing ceremony with four franchise companies in Kuala Lumpur yesterday. Revenue from franchise operations contributes 30 per cent to the group's travel division.

Its general manager Raymond Lee said there might be a possibility the franchise revenue will increase in future.

"We have expectations that, percentage wise, franchise revenue contribution will grow up to 45 per cent next year and will eventually outgrow our own," Lee said, referring to the eight outlets currently owned by the company.

On expansion plans in Indonesia, Tan said Indonesia shared many similar features with Malaysia.

"Both the countries share the same culture and lingo, there is a huge population of 250 million to tap into and the proximity means we are able to have direct control over the market," Tan said, adding that the company was given a RM2 million grant by Matrade last year to advertise and venture into Indonesia.

Tan added that there are plans to expand into regional markets but stressed that the Indonesian market came first.

The company is set to maintain the 37 per cent sales growth it recorded last year, spurred by online sales.

The travel division makes up 60 per cent of the group's total revenue. The group's other two divisions include hotel and property management.

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