JAPAN/SOUTH KOREA. Tour agency JTB and Lotte.com – an online division of the Lotte Group – plan to establish a joint venture travel services company called LotteJTB.
It will begin trading on 1 July, reported Travel Journal International (Online). Lotte and JTB will each take a 50% share in the new venture. Lotte.com is a sister company to the hugely successful Lotte Duty Free Shop operation, which spans airport and downtown stores in South Korea.
JTB has been unable to handle tours departing from South Korea as it has no office in the country. The agreement will allow JTB to develop tour business there by taking advantage of the wide distribution network of the Lotte Group. The Lotte Group will lean on JTB’s expertise in the agency business and its wide network to enhance its sales and marketing.
The main business at the new company will include outbound travel for Koreans citizens, inbound travel accommodating foreign travellers visiting Korea, product planning and marketing of online tour products, events and convention business and corporate travel for Lotte Group companies.
The joint venture company will have its headquarters in Seoul. Ryutaro Sato, former president of JTB Support International, will be President of the board of directors of the new company. Lotte.com will also send an executive from its supporting division to serve as Vice President.
The joint venture plans to attract 25,000 customers in the first fiscal year between July and December 2007 and also set a goal to attract 1.2 million customers by fiscal year 2011.
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