Opportunities and ChallengesIndonesian E-Tourism Summit 2011Lim Lai HockDirector, Online Segment and Solutions1
The world’s largest Internet user base            Source: Internet World Stats2
The world’s fastest-growing middle-class3
Forecasted                                                                    Internet                                    ...
Business fundamentals are           unchanged    Same challenges apply5
Know the customers6
Why do consumers shop online?                                      88%                               Being able to shop at...
How loyal are online shoppers?           28%         30%                                  Yes                             ...
What drive away consumers?9
It’s not just about who holds the mouse.10
Know the risks11
Travel is hardest hit by online fraud     Fraud Spend Penetration12
Some e-commerce myths• Myth: All payment partners have same  capability, choose the one with lowest fees &  MDR• Myth: Pay...
Hard facts about Online Fraud Risks     • Airlines   (Source: CyberSource)        – US$5.5 Billion in lost sales volume   ...
More hard facts     • Online travel merchants       • fraud losses between 0.2% to 5% of top-line         revenue       • ...
Build and maintain     a competitive advantage16
Scalability matters … more than ever!     • Traditional business growth potential is       linearly constrained by your re...
Where can you drive more efficiency?                                           18%                                        ...
Drive online as a profitable business           As much as 30% of total ticket          volume can be lost due to human   ...
Thank You20
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Opportunitiies & Challenges by Lim Lai Hock IETS2011

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Opportunitiies & Challenges by Lim Lai Hock IETS2011

  1. 1. Opportunities and ChallengesIndonesian E-Tourism Summit 2011Lim Lai HockDirector, Online Segment and Solutions1
  2. 2. The world’s largest Internet user base Source: Internet World Stats2
  3. 3. The world’s fastest-growing middle-class3
  4. 4. Forecasted Internet Internet Internet Internet Users Internet Users Penetration User Country Penetration in 2009 by end of 2010 Rate in 2011 Growth Rate (2009) (Million) (Millions) (Forecast) (2009 to 2010)* China 29% 32% 384 420 9% Japan 75% 78% 96 99 3% India 7% 8% 81 89 10% Korea 71% 81% 37 49 30% Indonesia 13% 13% 30 31 3% Philippines 25% 30% 24 30 24% Australia Indonesia’s Internet penetration rate is 78% 81% 17 18 7% Thailand 25% 26% 16 18 9% discouraging Hong Kong 68% 69% 5 5 4% Singapore 73% 78% 3.5 3.7 9% … until you compare it with India Source: Internet World Stats, *Other Internet Statistics Websites (CNIC, ITU, NIIDA) and EDC Analysis4
  5. 5. Business fundamentals are unchanged Same challenges apply5
  6. 6. Know the customers6
  7. 7. Why do consumers shop online? 88% Being able to shop at any time 82% 83% Get the best Top Being able to prices three shop easily Reasons for shopping onlineSource: Visa e-Commerce Tracking Survey 087
  8. 8. How loyal are online shoppers? 28% 30% Yes Sometimes No 42% You can increase retention rate to 72%8
  9. 9. What drive away consumers?9
  10. 10. It’s not just about who holds the mouse.10
  11. 11. Know the risks11
  12. 12. Travel is hardest hit by online fraud Fraud Spend Penetration12
  13. 13. Some e-commerce myths• Myth: All payment partners have same capability, choose the one with lowest fees & MDR• Myth: Payment partner will absorb all risks so I can maximize my profit• Myth: There’s ZERO risk doing business with us13
  14. 14. Hard facts about Online Fraud Risks • Airlines (Source: CyberSource) – US$5.5 Billion in lost sales volume – US$1.5 Billion written off, for payment fraud (~1.2% of total revenue) • Online Merchants (Source: Sage Pay) – 68%: Payment fraud most daunting to manage – 60%: Unaware if their provider is Bank Certified, PCI Compliant, and 3D Secure Certified • As a result, the merchant is non-compliant and liable14
  15. 15. More hard facts • Online travel merchants • fraud losses between 0.2% to 5% of top-line revenue • Non-compliance of PCI can attract fines of 10K-20K euro from Visa and Mastercard • Online payment is strategic to online business model  Unanimously voted by leading online merchants15
  16. 16. Build and maintain a competitive advantage16
  17. 17. Scalability matters … more than ever! • Traditional business growth potential is linearly constrained by your resources • Online business growth potential can grow exponentially practically overnight • Can existing business process cope if business volume doubled overnight?17
  18. 18. Where can you drive more efficiency? 18% Engage Book Finalize 47% Finishing 18% Ticketing Others 7% 7% 3% Average from a set of travel agencies around world and within Asia18
  19. 19. Drive online as a profitable business As much as 30% of total ticket volume can be lost due to human errors (eg ADMs) Online business profitability should be managed even more aggressively than your traditional business19
  20. 20. Thank You20
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