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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,

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Presentation on theme: "Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,"— Presentation transcript:

1 Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva, Switzerland February 2001 Is E-Commerce a viable alternative to the traditional travel Infrastructure? A Developing Countrys Perspective

2 OUTLINE CONTEXT E-COMMERCE: A Developing Countrys Experience The Lakbay.Net E-Business Model CONCLUSIONS

3 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, DMDs Local tourism, service providers, agents, GDSs, internet travel portals, ICT sector, local communities and foreign suppliers Ownership of local content CONTEXT

4 Community-based approach Private Sector initiated with close partnership with NGOs and government Appropriate Technology approach Lakbay.Net & UNCTAD Lakbay.Net was chosen as a model because of its: CONTEXT

5 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, Peoples Choice for Best Travel Website 1999, Best Philippine Travel Website 1999, Special HP Award for E-Services CONTEXT

6 E-COMMERCE: A Developing Economys Experience 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. Situation

7 A Developing Economys Experience Telecommunications access is costly Inadequacy and inaccuracy of travel product information Payment Issues Unique mix of Tourism Traffic in the Philippines A. Situation E-COMMERCE

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

9 B. Lakbay.Net E-Business Model Convergence of 4 Delivery Systems LAKBAY TV TRAVEL CHANNEL LAKBAYE-SERVICES LAKBAYINTERACTIVE WEBSITE TO BRING TRAVEL PRODUCTS & SERVICES CLOSEST TO THE CUSTOMER LAKBAYALLIANCE B 2 B EXCHANGE E-COMMERCE

10 LAKBAY.NET The E-BUSINESS MODEL

11 Region (16) Province (77) City (82) Municipalities (1,532) Civil Society: Heritage, Conservation, EcoTourism Groups Department of Tourism JobsDB.com Community-based tourism strategy: PRIDE OF PLACE The soul of Lakbay.NET DESTINATIONSPROGRAMS Philippine Travel Information Service Peace Thru Tourism Local Governments Meetings Make Manila (MICE)

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

13 DESTINATIONS PROGRAMS TOURIST PRODUCT Community + Catalogues Travel Agents Non-Traditional: Electronic Storefronts Traditional + Non-Trad + Mobile Networks= Distribution Mobile Cellular Phones DISTRIBUTION Lakbay.Net E-Business Model

14 DESTINATIONS PROGRAMS TOURIST PRODUCT Community + Catalogues DISTRIBUTION + Distribution E-SERVICES UNION BANK Credit Cards Reservations & Ordering Systems Lakbay.Net E-Business Model + Booking System + Payments = E-Commerce

15 Lakbay.Net E-Business Model DESTINATIONS PROGRAMS TOURIST PRODUCT DISTRIBUTION PAYMENT PLAN MEDIA RESOURCES ABS-CBN SkyCable The Filipino Channel ABS-CBN.COM ABS-CBN NEWS Community + Catalogues + Distribution + E-Commerce = E-SERVICES Lakbay.Net E-BUSINESS Community + Catalogues + Distribution + E-Commerce =

16 (Front door)

17 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 CONCLUSIONS E-commerce IS a viable alternative

18 Access to large distribution network Penetrate untapped markets Inexpensive start-up capital requirements Short-time to market for deployment to travel providers CONCLUSIONS E-commerce IS a viable alternative

19 KALAKBAYAN TRAVEL SYSTEMS, INC. FIRST. FILIPINO. ONLINE TRAVEL ACCESS EDDIE M. NUQUE Managing Director Phone: FAX: A member of the Lopez Group of Companies 22 February 2001 Maraming salamat po!


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