World's first nationwide, online travel industry marketplace to help Singapore travel agencies fight rising global competition

New marketplace to streamline operations and slash cost of going online by up to 85%

SINGAPORE -- Apr. 21, 2004 -- The National Association of Travel Agents Singapore (NATAS) and partners Travelgate Technology, Microsoft Singapore and IBM Singapore today announced the launch of the NATAS Travel Marketplace, the world's first nationwide travel marketplace. The NATAS Travel Marketplace will enable Singapore's travel agencies to share data and information with suppliers, streamline back office operations and easily establish e-commerce websites. This will make Singapore's travel industry more competitive against global online travel companies and more resilient in the face of economic shocks such as SARS.

Currently local travel agencies incur large overhead costs from manually communicating with many different suppliers and consolidators and updating airline and hotel pricing information on a daily basis. NATAS also estimates that 60% of its 350 member companies still lack web or e-commerce facilities that are often the first stop for consumers, but which can cost a prohibitive S$15,000 to $20,000 to establish for retailers, and up to $100,000 for wholesalers.

The NATAS Travel Marketplace will provide a common Internet platform that links all parties in the local travel industry value chain, including suppliers, consolidators and retail travel agencies, and enable small agencies to sell online. This will benefit local agencies by:

- Facilitating faster and easier exchange of product and availability information
- Reducing overhead costs from daily, manual entry of airline and hotel prices
- Putting e-commerce within reach of local travel agencies of all sizes by enabling them to go online for as low as S$2400 and collectively save over S$3.5 million.
- Helping local agencies to capitalize on their special areas of expertise by enabling them to more easily create and sell compelling, customized travel packages

The Internet has obviously changed the way we do business. With consumers becoming increasingly Internet savvy, my company is finding it more effective and efficient to reach our customers using this medium. We see the NATAS Travel Marketplace as a great business tool; one that has the potential to help the company grow, reach more customers and distribute our products in a cost-effective way,' said Mr. Brendan Leong, Managing Director of travel agency GBC Pte. Ltd.

The NATAS Travel Marketplace was designed to help Singapore's retail travel agents meet the challenges presented by their changing business environment,' said NATAS IT Chairman Mr. Eric Tan. 'This portal will put our local agents back on a competitive footing with online travel companies, airlines and hotels, who are increasingly selling direct to customers over the Internet. This portal will also address rising consumer demand for online travel services and information.'

The NATAS Travel Marketplace is powered by eTXN (Electronic Travel Exchange Network), a travel exchange engine deployed by Singapore-based Travelgate Technology Pte. Ltd. Travelgate Technology CEO Mr. Jay de Faro said, 'With support from NATAS, we are using eTXN to do something no one else has done before. We're interconnecting companies that span the breadth of a nationwide travel industry, from the smallest neighborhood agencies to the biggest suppliers and consolidators. This integration will enable Singapore's travel industry to be more competitive, flexible, and innovative, and make it a model for the rest of the world.'

Microsoft Singapore and IBM Singapore have both worked with Travelgate Technology to support the NATAS Travel Marketplace, supply underlying technologies, and ensure that the Marketplace is available across multiple platforms used in the local travel industry.

Mr. Andrew Pickup, Director, Business and Marketing Organization, Microsoft Singapore said, 'Companies like Microsoft can create great technology, but it takes unique skills and industry experience to transform that technology into useful solutions that keep Singaporean businesses competitive. It's great to see a Microsoft Singapore partner like Travelgate working with NATAS to help the local travel industry reinvent itself in a very profound way.'

Collaborating with leading ISVs is at the core of IBM's strategy to support the small and medium-sized businesses with on demand solutions that address business issues. Partners like Travelgate seek open solutions that are secure, cost effective, and flexible to install and integrate across their own companies and with their customers and suppliers,' said Ms. Wendy Chin, Country Manager, Solution Sales, IBM Singapore. 'The NATAS Travel Marketplace is a welcome move to transform the local travel industry.'

Travelgate's Mr. de Faro said, The participation of IBM and Microsoft, as Travelgate Technology partners, reflects our focus on providing solutions that follow international standards and offer great scalability and flexibility. Travelgate supports most operating system environments, including IBM and Microsoft, and utilizes extensive technology and standards provided by these industry leaders.
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About NATAS
The National Association of Travel Agents Singapore (NATAS) was founded in May 1979. As a national body, NATAS aims to represent all travel agents licensed by the Singapore Tourism Board (STB). Currently, NATAS represents 60 percent of all licensed travel agents in Singapore and they generate 80 percent of the travel industry turnover.

As an industry-lead body, the Association leads travel excellence by setting and regulating standards of professionalism and ethical conduct of its members. It is the voice of the industry and spearheads education and training. NATAS also aims to promote and foster goodwill, cooperation and understanding in the travel industry.

There are three categories of membership: Active, Associate and Individual. Active membership is open to all tour operators and travel agencies in Singapore, licensed by the STB. Associate membership is open to staff of member travel agencies.

The Association is run by a full-time secretariat, which has attained the Singapore Quality Class award for 2003, and managed by an executive committee elected from among the Active membership once in every two years. For more information, please visit www.natas.org.sg.

Our Affiliations:

• American Society of Travel Agents (ASTA)
• ASEAN Tourism Association (ASEANTA)
• Federation of ASEAN Travel Associations (FATA)
• Singapore International Chamber of Commerce (SICC)
• Universal Federation of Travel Agents Associations (UFTAA)
• Universal Federation of Travel Agents Associations Asia Pacific Alliance (UAPA)