Kalakbayan Travel Systems, Inc.

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Kalakbayan Travel Systems, Inc.
Is E-Commerce a viable
alternative to the traditional travel
Infrastructure?
A Developing Countrys Perspective

• 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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OUTLINE

1. CONTEXT
2. E-COMMERCE A Developing Countrys Experience
3. The Lakbay.Net E-Business Model
4. CONCLUSIONS

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UNCTAD Expert Group on E-Commerce and Tourism
Recommendations
CONTEXT

• 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

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Lakbay.Net UNCTAD
CONTEXT
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

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Lakbay.Net Today
CONTEXT

• 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

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E-COMMERCE A Developing Economys 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

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A Developing Economys Experience
E-COMMERCE
A. Situation

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

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Philippine Visitor Profile
E-COMMERCE
Business/ Professional Work
Visiting Friends/Relatives
28
20
Others
Pleasure/Vacation
12
40
SOURCE DOT Statistics
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B. Lakbay.Net E-Business ModelConvergence of 4
Delivery Systems
E-COMMERCE
LAKBAY TV TRAVEL CHANNEL
LAKBAY INTERACTIVE WEBSITE
LAKBAY ALLIANCE B2B EXCHANGE
TO BRING TRAVEL PRODUCTS SERVICES CLOSEST TO
THE CUSTOMER
LAKBAY E-SERVICES
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LAKBAY.NET The E-BUSINESS MODEL
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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
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Lakbay.Net E-Business Model
Attractions
TOURIST PRODUCT
Access
DESTINATIONS
PROGRAMS
Accommodations
Ancillaries
Community
Community Tourist Products E-Catalogues
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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
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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
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Lakbay.Net E-Business Model
ABS-CBN
SkyCable
MEDIA RESOURCES
The Filipino Channel
DESTINATIONS
PROGRAMS
TOURIST PRODUCT
DISTRIBUTION
PAYMENT PLAN
E-SERVICES
ABS-CBN.COM
ABS-CBN NEWS
Community
Catalogues
Distribution
E-Commerce
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(Front door)
http//www.lakbay.net.ph
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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

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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

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KALAKBAYAN TRAVEL SYSTEMS, INC.
Maraming salamat po!

• FIRST. FILIPINO. ONLINE TRAVEL ACCESS
• EDDIE M. NUQUE
• Managing Director
• E-mail asknuque_at_lakbay.net.ph
• Phone [phone]
• FAX [phone]
• A member of the Lopez Group of Companies
• 22 February 2001