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

Asiatravelmart.comAFOOFA, Inc.

E-Commerce Strategies for Development

Presented by:

Alex Kong, CEO

Nov 20, 2002ROADMAP

• 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 2002.

• 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?

Communication Fast in disseminate message Slow & tedious

Website, Email Fax, post, phone calls

More effective personalize Hard to trace buying pattern.

With better track record in hand.

Human TouchHuman Touch

Comparison – Online & Offline Travel Agents

Online Travel Agents

Offline Travel Agents

Operation Automated process Manual work

Fast & Accurate Slow with Human Error

Marketing Customer database captured Some customer info is missing

Easy promotion campaign Hard 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:

Communication Fast in disseminate message Slow & tedious

Website, Email Fax, post, phone calls

More effective personalize Hard to trace buying pattern.

With better track record in hand.

Human TouchHuman Touch

Comparison – Online & Offline Travel Agents

Online Travel Agents

Offline Travel Agents

Operation Automated process Manual work

Fast & Accurate Slow with Human Error

Marketing Customer database captured Some customer info is missing

Easy promotion campaign Hard 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

Online Offline

• 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!

ThreatThreat or OpportunityOpportunity

The Future of Travel…

Phone Phone Fax Machine Fax Machine Internet (ITP)Internet (ITP)

……within the next 1-2 years…within the next 1-2 years…

““Internet tool is just another essential tool Internet tool is just another essential tool similar to phone and fax machine to facilitate similar to phone and fax machine to facilitate

and support travel agent’s day-to-day and support travel agent’s day-to-day business operation. Nothing more, nothing business operation. Nothing more, nothing

less.” Alex Kongless.” 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

alex@afoofa.com

October 17, 2002

ROADMAP