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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

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Kalakbayan Travel Systems, Inc.

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  1. 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

  2. OUTLINE • CONTEXT • E-COMMERCE: A Developing Country’s Experience • The Lakbay.Net E-Business Model • CONCLUSIONS

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. E-COMMERCE Philippine Visitor Profile Business/ Professional Work Visiting Friends/Relatives 28% 20% Others Pleasure/Vacation 12% 40% SOURCE: DOT Statistics

  9. 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

  10. LAKBAY.NET The E-BUSINESS MODEL

  11. 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

  12. Lakbay.Net E-Business Model Attractions TOURIST PRODUCT Access DESTINATIONS PROGRAMS Accommodations Ancillaries Community + Community + Tourist Products = E-Catalogues

  13. 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

  14. 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

  15. 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 =

  16. (Front door) http://www.lakbay.net.ph

  17. 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

  18. 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

  19. 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

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