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Meitetsu Travel and Naigai Travel Form Partnership for Mutual
Reinforcement, Expect to Yield 5 Billion Yen More in Sales in Three
Years End-May 2008
Meitetsu World Travel Inc. and Naigai Travel Service Co. struck a
deal on May 12 to form partnership. In an attempt to seek business
alliance between Meitetsu group and ITOCHU group, each of their
travel units agreed to join forces as they have different backyards
of their own and are least likely to contend in the market.
They are expected to strengthen their edges by the collaboration
and expand the market by mutually introducing customers. It is not
envisaged to go for capital tie-up, but personnel exchange is
conceivable. They intend to jointly generate five billion yen more in
sales in three years' time.
To draw up the framework of cooperation, the two companies
launched Business Alliance Promotion Committee led by the presidents
of both companies and held its first meeting on May 12. Several
panels are set up in the committee to discuss details of the
operation. The committee will scrutinize in early October the
objectives proposed by these panels.
The scope of cooperation will be defined in the following four
areas: (1) travel related to corporations, institutions, and
organizations, (2) individual travel, (3) joint purchasing, and (4)
sharing of information systems.
With regard to business related to corporations and
organizations, Naigai is going to outsource domestic travel (both
business and leisure) and inbound travel to Meitetsu, while it gets
outbound travel from Meitetsu; thus, they interchange business and
reinforce the fields of their specialization.
Naigai will provide Meitetsu's customers with overseas business
trip service with which they have not been approached by Meitetsu.
Meitetsu, in turn, will offer domestic travel service (corporate and
group business) and inbound travel to the accounts of ITOCHU group
and its clients as those are the Meitetsu's area of expertise.
For individual travel, they divide the business into two
categories; one is "open market," according to their terminology, and
the other is "closed market." Open market relates to Internet
transactions. Meitetsu's website, for instance, will be linked to
Naigai's site that offers overseas business trip service, and vice
versa. Each of them becomes able thereby to use the other party's
services reciprocally and to offer full line services to the
customers so as to embrace a bigger market, which has not been
hitherto realized. Closed market, on the other hand, implies
'intranet' sales generated from registered accounts of corporations
and organizations.
As for joint purchasing, cooperation is expected in air ticket
buying with a view to take advantage of the volume. With regard to
sharing information systems, while Naigai makes full use of
Meitetsu's system, both parties will endeavor to develop the common
infrastructure of the system for the betterment of their websites.
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