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Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva, Switzerland 22-23 February 2001

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kalakbayan travel systems inc

Kalakbayan Travel Systems, Inc.

A Presentation by Eddie M. Nuque

Managing Director, KTSI

Symposium on Tourism Services

World Trade Organization

Geneva, Switzerland

22-23 February 2001

Is E-Commerce a viablealternative to the traditional travel Infrastructure?

A Developing Country’s Perspective

outline
OUTLINE
  • CONTEXT
  • E-COMMERCE: A Developing Country’s Experience
  • The Lakbay.Net E-Business Model
  • CONCLUSIONS
unctad expert group on e commerce and tourism recommendations

CONTEXT

UNCTAD Expert Group on E-Commerce and Tourism Recommendations:
  • Advocate sustainable e-tourism in a social, cultural and environmental and economic sense
  • Develop strategy for improving Internet Access and ICT infrastructure investment
  • Forge partnerships between government, DMD’s Local tourism, service providers, agents, GDSs, internet travel portals, ICT sector, local communities and foreign suppliers
  • Ownership of local content
lakbay net unctad

CONTEXT

Lakbay.Net & UNCTAD

Lakbay.Net was chosen as a model because of its:

  • Community-based approach
  • Private Sector initiated with close partnership with NGOs and government
  • Appropriate Technology approach
lakbay net today

CONTEXT

Lakbay.Net Today
  • The FIRST working E-commerce model for Philippine Travel integrating Accommodations, Transportation, Tour Operators and other suppliers with online order and payment facilities
  • The most comprehensive Philippine Website to-date
    • More than 100 Philippine Destinations
    • Over 200 participating establishments
  • Award-winning website by Philippine Webby Awards
    • 2000, People’s Choice for Best Travel Website
    • 1999, Best Philippine Travel Website
    • 1999, Special HP Award for E-Services
e commerce a developing economy s experience
E-COMMERCE: A Developing Economy’s Experience

A. Situation

  • Low Internet connectivity (300,000), but high Television and Mobile phone penetration
  • Insufficient funds available to NTOs and DMOs
  • Traditional Distribution Networks:
    • Inadequate to deal with “real-time” customers
    • Cannot cope with “revenue management” concerns of suppliers
a developing economy s experience

E-COMMERCE

A Developing Economy’s Experience

A. Situation

  • Telecommunications access is costly
  • Inadequacy and inaccuracy of “travel product” information
  • Payment Issues
  • Unique mix of Tourism Traffic in the Philippines
philippine visitor profile

E-COMMERCE

Philippine Visitor Profile

Business/

Professional Work

Visiting Friends/Relatives

28%

20%

Others

Pleasure/Vacation

12%

40%

SOURCE: DOT Statistics

b lakbay net e business model convergence of 4 delivery systems

E-COMMERCE

B. Lakbay.Net E-Business ModelConvergence of 4 Delivery Systems

LAKBAY TV

TRAVEL

CHANNEL

LAKBAY

ALLIANCE

B2B EXCHANGE

LAKBAY

INTERACTIVE

WEBSITE

TO BRING TRAVEL

PRODUCTS & SERVICES

CLOSEST

TO THE CUSTOMER

LAKBAY

E-SERVICES

philippine travel information service
Philippine Travel Information Service

Department of Tourism

Region(16)

Local Governments

Province (77)

DESTINATIONS

PROGRAMS

Civil Society: Heritage,

Conservation,

EcoTourism Groups

City (82)

Peace Thru Tourism

Municipalities

(1,532)

Meetings Make Manila (MICE)

JobsDB.com

Community-based tourism strategy:

“PRIDE OF PLACE”The soul of Lakbay.NET

lakbay net e business model
Lakbay.Net E-Business Model

Attractions

TOURIST PRODUCT

Access

DESTINATIONS

PROGRAMS

Accommodations

Ancillaries

Community

+ Community + Tourist Products = E-Catalogues

lakbay net e business model13
Lakbay.Net E-Business Model

Non-Traditional:

Electronic Storefronts

DISTRIBUTION

DESTINATIONS

PROGRAMS

TOURIST PRODUCT

Travel Agents

Mobile Cellular Phones

Community

+ Catalogues

Traditional + Non-Trad + Mobile Networks= Distribution

lakbay net e business model14
Lakbay.Net E-Business Model

Reservations &

Ordering Systems

E-SERVICES

DESTINATIONS

PROGRAMS

TOURIST PRODUCT

DISTRIBUTION

UNION BANK

Credit Cards

Community

+ Catalogues

+ Distribution

+ Booking System + Payments = E-Commerce

lakbay net e business model15

Community

Lakbay.Net

E-BUSINESS

+ Catalogues

+ Distribution

+ E-Commerce =

ABS-CBN

Lakbay.Net E-Business Model

SkyCable

MEDIA RESOURCES

The Filipino Channel

DESTINATIONS

PROGRAMS

TOURIST PRODUCT

PAYMENT PLAN

DISTRIBUTION

E-SERVICES

ABS-CBN.COM

ABS-CBN NEWS

Community

+ Catalogues

+ Distribution

+ E-Commerce =

front door
(Front door)

http://www.lakbay.net.ph

slide17

CONCLUSIONS

E-commerce IS a viable alternative

  • Potential for clearer more forward branding for destinations
  • More connectivity as both wired and wireless will provide inexpensive, short time to market strategy for emerging destinations and new travel products
  • Guaranteed payment system
  • Revenue management programs
slide18

CONCLUSIONS

E-commerce IS a viable alternative

  • Access to large distribution network
  • Penetrate untapped markets
  • Inexpensive start-up capital requirements
  • Short-time to market for deployment to travel providers
kalakbayan travel systems inc19

Maraming salamat po!

KALAKBAYAN TRAVEL SYSTEMS, INC.

FIRST. FILIPINO. ONLINE TRAVEL ACCESS

EDDIE M. NUQUE

Managing Director

E-mail: asknuque@lakbay.net.ph

Phone: 63-2-449-2470

FAX: 63-2-449-2459

A member of the Lopez Group of Companies

22 February 2001