AGENDA
     AGENDA
           Current situation
            Current situation
           How the idea was born
            How the idea was born
           What is Despegar.com
            What is Despegar.com
           Strategy / business model
            Strategy / business model
           Economic outlook for Latin America
            Economic outlook for Latin America
           Competitive Environment
            Competitive Environment
           Proposed Solution
            Proposed Solution
                                        
   The Vision
   The Vision
         Be the leading provider of on-line 
          travel services in Latin America.
                       
  Current Situation
  Current Situation
                …we are towards the end of 1999…
                 
       …the internet is changing the way business is done… 
     Five MBA graduates (3 from Fuqua) are developing a business 
     Five MBA graduates (3 from Fuqua) are developing a business 
       plan for an on-line travel agency to serve Latin America
       plan for an on-line travel agency to serve Latin America
                      Their objective ? 
                      Their objective ? 
       To become one of the first Latin American e-ventures to be 
       To become one of the first Latin American e-ventures to be 
                financed by US Venture Capitalists
                financed by US Venture Capitalists
                        
    E-TRAVEL: AN OPPORTUNITY IN LATIN 
    E-TRAVEL: AN OPPORTUNITY IN LATIN 
    AMERICA
    AMERICA
       Successful business models
         Successful business models
       Expected market growth (Internet, Tourism, LatAm)
                                       Internet, Tourism, LatAm
         Expected market growth (                           )
       Industry structure: 
         Industry structure: 
           Geographically disperse
            Geographically disperse
           Information intensive buying process
            Information intensive buying process
           No dominant players
            No dominant players
           Substandard customer service
            Substandard customer service
           High transaction costs
            High transaction costs
           Lack of transparency
            Lack of transparency
                              
   E-TRAVEL IS THE MOST IMPORTANT ON-LINE 
   E-TRAVEL IS THE MOST IMPORTANT ON-LINE 
   COMMERCE CATEGORY IN THE USA
   COMMERCE CATEGORY IN THE USA
                                                                                      Insurance/Financial Services
                                                                                     Computer Software/Hardware
                                                          E                              Travel             
                                                          N
                                                          I                                Books                   
                                                          L
                                                          N                                 Magazines           
                                                          O
                                                                                                  Music/Videos     
                                                          G
                                                          N                            Flowers/Gifts                   
                                                          I
                                                          Y                          Automobiles                           
                                                          U
                                                          B                          Toys                                          
                                                           
                                                          H                          Office Products                        
                                                          T
                                                          I                      Specialized Sporting Goods               
                                                          W
                                                           
                                                          T              Consumer Electronics/Appliances                                 
                                                          R
                                                          O               Apparel                                                                        
                                                          F             Groceries/Food                                                                  
                                                          M
                                                          O          General Sporting Goods                                                            
                                Total 98 online           C
                                                                      Tools/Home Repair                                                                   
                                                          R
                                spending: $4,390          E
                                                          M
                                                          U
                                      MM                  S      Home Furnishings                                                                                     
                                                          N
                                                          O
                                                          C
                                                              Cigars                                                                                                                                    
          Source: NUA Internet Services
                                                                       INTERNET BUSINESS OPORTUNITY
                                                        Source: Morgan Stanley Dean Witter