Asiatravelmart.com AFOOFA, Inc. E-Commerce Strategies for Development Presented by: Alex Kong, CEO Nov 20, 2002 ROADMAP

Asia Pacific e-commerce travel market From pure “Mortal” to “Click-&-Mortal” E-Commerce: Threats & Opportunities Government Roles… AGENDA

Current Travel Market Transformation What are the Consequences to your Travel Agents? How to prepare your travel agents to this situation? Asia Pacific e-commerce travel market

Challenges Faced by Your Travel Agents

Airline Cost of Distribution

Majority of countries in Asia Pacific have no problem with Internet access. (1) Asia is ready for internet WHY World’s biggest players are making their way to Asia Pacific?

“Only 1%-3% of total travel bookings in Asia are made online, but the Asia Pacific online travel market will grow between 60%-70% annually for the next two years. Projected by PhoCusWright (2) Asia is the high-growing market

(3) Online Travel Market in Asia Pacific is expected to reach 13.3 billion in 2004.

(4) Online travel in US is getting saturated. European market is growing slower than expected.

Priceline has already rolled out its service in Taiwan, Hong Kong and Singapore in the first half of Expedia has called Asia Pacific “the next emerging giant” Where do they hit first?

What are the Consequences to Travel Agents?

Online players are taking market share from the offline travel agents Consequences

Travelocity, Expedia, Orbitz… come from nowhere and are now the TOP 10 players in travel industry. The Offline travel agents in US and Europe are DYING!! Consequences

How to prepare your travel agents to this situation?

CommunicationFast in disseminate messageSlow & tedious Website, Fax, post, phone calls More effective personalizeHard to trace buying pattern. With better track record in hand. Human Touch Comparison – Online & Offline Travel Agents Online Travel Agents Offline Travel Agents OperationAutomated processManual work Fast & AccurateSlow with Human Error MarketingCustomer database capturedSome customer info is missing Easy promotion campaignHard to reach mass customers

Fundamentals of survival Support same service level as online player. Do it at lower cost than your current operational cost with higher efficiency. Keep personal touch to existing clients. Fully utilize the advantage of offline agents which you can have products with more complexity and diversity. Right combination of click and mortal!!

What survival tool available for agents?

Instant Travel Portal It takes only 15 minutes to become:

CommunicationFast in disseminate messageSlow & tedious Website, Fax, post, phone calls More effective personalizeHard to trace buying pattern. With better track record in hand. Human Touch Comparison – Online & Offline Travel Agents Online Travel Agents Offline Travel Agents OperationAutomated processManual work Fast & AccurateSlow with Human Error MarketingCustomer database capturedSome customer info is missing Easy promotion campaignHard to reach mass customers

Two In One: Best of both world ITP enables the travel agents to enjoy the advantages of offline and online competitive advantages. both OnlineOffline Self booking tool Automate process Push work to customers Maintain own customers relationship - personal human touch Local culture Local language Every town & cities

It takes only 15 minutes each to transform… All the travel agents in your country into another Expedia or Travelocity… to compete on level- playing-field! ThreatOpportunity Threat or Opportunity

The Future of Travel… Phone  Fax Machine  Internet (ITP) …within the next 1-2 years… “Internet tool is just another essential tool similar to phone and fax machine to facilitate and support travel agent’s day-to-day business operation. Nothing more, nothing less.” Alex Kong

Travel Agents profit is being squeezed… E-commerce conditions in Asia Pacific - direct threat from airlines & big online players Online Booking Tool becomes an affordable agents’ survival weapon – 2 in 1 Government Roles: Introduce these opportunities to allow your travel agents to compete on level-playing-field (economic of scales) Government Roles: make your country as global destination – through micro agent websites In Conclusion…

Empower your agents to promote… your country!

THANK YOU! Any questions? Presented by: Alex Kong, CEO October 17, 2002 ROADMAP