Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium...

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

Transcript of Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium...

Page 1: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

Kalakbayan Travel Systems, Inc.Kalakbayan Travel Systems, Inc.

A Presentation by Eddie M. NuqueManaging Director, KTSI Symposium on Tourism ServicesWorld Trade OrganizationGeneva, Switzerland22-23 February 2001

Is E-Commerce Is E-Commerce a a viableviable

alternative to alternative to the traditional travel the traditional travel

Infrastructure?Infrastructure?A Developing Country’s A Developing Country’s PerspectivePerspective

Page 2: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

OUTLINE

I. CONTEXTII. E-COMMERCE: A Developing

Country’s ExperienceIII. The Lakbay.Net E-Business

ModelIV. CONCLUSIONS

Page 3: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

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

CONTEXT

Page 4: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

Community-based approach Private Sector initiated with close

partnership with NGOs and government

Appropriate Technology approach

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

CONTEXT

Page 5: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

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

CONTEXT

Page 6: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

E-COMMERCE: A Developing Economy’s 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

Page 7: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

A Developing Economy’s 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

Page 8: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

Philippine Visitor ProfilePhilippine Visitor Profile

E-COMMERCE

Visiting Friends/Relatives

Pleasure/Vacation40%

Business/Professional Work

Others

28%

12%

20%

SOURCE: DOT Statistics

Page 9: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

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

LAKBAY TVLAKBAY TVTRAVEL

CHANNEL

LAKBAY LAKBAY E-SERVICESE-SERVICES

LAKBAY LAKBAY INTERACTIVEINTERACTIVE

WEBSITE

TO BRING TRAVEL TO BRING TRAVEL PRODUCTS & SERVICES PRODUCTS & SERVICES

CLOSEST CLOSEST TO THE CUSTOMERTO THE CUSTOMER

LAKBAY LAKBAY ALLIANCEALLIANCE

B2B EXCHANGE

E-COMMERCE

Page 10: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

LAKBAY.NET The E-BUSINESS MODEL

Page 11: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

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

DESTINATIONS PROGRAMS

Philippine Travel Philippine Travel Information ServiceInformation Service

Peace Thru Tourism

Local Governments

Meetings Make Manila (MICE)

Page 12: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

DES

TIN

ATIO

NS

PR

OG

RA

MS

TOURIST PRODUCT

Community

+ Community + Tourist Products = E-Catalogues

Attractions

Access

Accommodations

Ancillaries

Lakbay.Net E-Business Model

Page 13: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

DES

TIN

ATIO

NS

PR

OG

RA

MS

TO

UR

IST P

RO

DU

CT

Community

+ Catalogues

Travel Agents

Non-Traditional:Electronic Storefronts

Traditional + Non-Trad + Mobile Networks= Distribution

Mobile Cellular Phones

DISTRIBUTION

Lakbay.Net E-Business Model

Page 14: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

DES

TIN

ATIO

NS

PR

OG

RA

MS

TO

UR

IST P

RO

DU

CT

Community

+ Catalogues

DIS

TR

IBU

TIO

N

+ Distribution

E-SERVICES

UNION BANK

Credit Cards

Reservations & Ordering Systems

Lakbay.Net E-Business Model

+ Booking System + Payments = E-Commerce

Page 15: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

Lakbay.Net E-Business Model

DES

TIN

ATIO

NS

PR

OG

RA

MS

TO

UR

IST P

RO

DU

CT

DIS

TR

IBU

TIO

N

PA

YM

EN

T P

LA

N

MEDIA RESOURCES

ABS-CBN

SkyCable

The Filipino Channel

ABS-CBN.COM

ABS-CBN NEWS

Community

+ Catalogues

+ Distribution+ E-Commerce =

E-S

ER

VIC

ES

Lakbay.Net E-BUSINESS

Community

+ Catalogues

+ Distribution+ E-Commerce =

Page 16: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

(Front door)

http://www.lakbay.net.ph

Page 17: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

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

CONCLUSIONSE-commerce IS a viable alternative

Page 18: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

Access to large distribution network Penetrate untapped markets Inexpensive start-up capital

requirements Short-time to market for deployment

to travel providers

CONCLUSIONSE-commerce IS a viable alternative

Page 19: Kalakbayan Travel Systems, Inc. A Presentation by Eddie M. Nuque Managing Director, KTSI Symposium on Tourism Services World Trade Organization Geneva,

04/10/23

KALAKBAYAN TRAVEL SYSTEMS, INC.

FIRST. FILIPINO. ONLINE TRAVEL ACCESS

EDDIE M. NUQUEManaging Director

E-mail: [email protected]: 63-2-449-2470FAX: 63-2-449-2459

A member of the Lopez Group of Companies

22 February 2001

Maraming salamat po!Maraming salamat po!