1. Kalakbayan Travel Systems, Inc.
Is E-Commerce a viable alternative to the traditional travel Infrastructure?
A Developing Country’s Perspective
A Presentation by Eddie M. Nuque
Managing Director, KTSI
Symposium on Tourism Services
World Trade Organization
Geneva, Switzerland
22-23 February 2001

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

3. UNCTAD Expert Group on E-Commerce and Tourism Recommendations:
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. Lakbay.Net was chosen as a model because of its:
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. 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, 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. A Developing Economy’s Experience
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. Philippine Visitor Profile
E-COMMERCE
Philippine Visitor Profile
Business/
Professional Work
Visiting Friends/Relatives
28%
20%
Others
Pleasure/Vacation
12%
40%
SOURCE: DOT Statistics

9. B. Lakbay.Net E-Business Model Convergence of 4 Delivery Systems
E-COMMERCE
B. Lakbay.Net E-Business Model Convergence 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
City (82)
Civil Society: Heritage,
Conservation,
EcoTourism Groups
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. Lakbay.Net E-Business Model
ABS-CBN
SkyCable
MEDIA RESOURCES
The Filipino Channel
DESTINATIONS
PROGRAMS
TOURIST PRODUCT
PAYMENT PLAN
DISTRIBUTION
E-SERVICES
ABS-CBN.COM
ABS-CBN NEWS
Community
Lakbay.Net
E-BUSINESS
Community
+ Catalogues
+ Distribution
+ E-Commerce =
+ Catalogues
+ Distribution
+ E-Commerce =

16. (Front door)

17. E-commerce IS a viable alternative
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. E-commerce IS a viable alternative
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. KALAKBAYAN TRAVEL SYSTEMS, INC.
Maraming salamat po!
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