RAKSO AIR TRAVEL

AND TOURS

GROUP 2

BENTULAN, BETHAMAE
ENGARCIAL, RUTHIE ANNE
SALIDAGA, JEY-MAR
TITONG, AISA LYN
YAP, TRICIA NICOLE
CAMAY, JEWARD (BSHM)
Rakso Air Travel & Tours, Inc.

Company Background and Entrepreneurial

Insights
Company Background

Rakso Air Travel & Tours, Inc. Was founded in 1999 as part of the Rakso Group, which was
originally established in 1987 by Jung Ok. The company specializes in travel services, offering both
inbound and outbound tours, ticketing, hotel reservations, visa assistance, and corporate travel
solutions. Over the years, Rakso Travel has grown into one of the leading travel agencies in the
Philippines, gaining recognition for its high-quality service and innovative travel packages.

The company has expanded its services to different regions, including major cities in the
Philippines and international destinations. Rakso Travel is known for its strong partnerships with
airlines, hotels, and tourism boards, allowing it to offer competitive travel packages. Additionally, it
has embraced modern technology to provide online booking services, making travel planning more
convenient for customers.

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 Reasons for the Business Name (Purpose)

The name Rakso comes from the Korean word Rakso, which means “happiness” or “joy”. This
reflects their goal of making travel enjoyable and stress-free for their customers. The company wants
people to experience happiness through well-planned and memorable trips.

Why They Created the Business (Purpose)

Rakso Travel was created to help travelers plan and book their trips easily. Before online travel
services became common, booking flights and hotels was difficult. The company saw an opportunity
to provide convenient and reliable travel services, making it easier for people to explore new places.
They also wanted to help grow the tourism industry by making travel more accessible.

Business Strategy

Rakso Travel’s strategy focuses on:

1. Customer Service – They make sure travelers get a smooth and hassle-
free experience.
2. Strong Partnerships – They work closely with airlines, hotels, and
tourism agencies to offer competitive prices and exclusive deals.
3. Technology – They invest in online booking systems to make travel
planning easier for customers.
4. Market Expansion – They expanded their services from the Philippines
to other countries, increasing their business reach.

Surviving Problems

Like any business, Rakso Travel faced challenges such as:

Economic Crises – During financial downturns, fewer people traveled. They survived by
adjusting their prices and offering affordable travel packages.

COVID-19 Pandemic – Travel restrictions caused major losses, but they adapted by
promoting local tourism and offering flexible travel options.

Competition – They constantly improve their services to stay ahead of other travel agencies.

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 Competitors

Rakso Travel competes with both local and international travel agencies, such as:

Cebu Pacific GetGo – Offers budget-friendly flights and travel packages.

SkyScanner & Expedia – Online platforms that provide cheaper flight and hotel bookings.

Other Travel Agencies in the Philippines – Many companies offer similar services, so
Rakso Travel must maintain excellent service to keep its customers.

Mission and Vision

Mission: Rakso Travel aims to provide high-quality, reliable, and innovative travel services
that cater to the needs of both local and international travelers. The company is committed to making
travel accessible, enjoyable, and hassle-free while ensuring excellent customer service and
satisfaction.

Vision: Rakso Travel envisions becoming the leading travel agency in the Philippines and
beyond, known for its outstanding service, strong global partnerships, and continuous efforts to
improve the travel experience for its clients. The company strives to be a key contributor to the
tourism industry by promoting sustainable and responsible travel.

Owner’s Background

Rakso Travel’s Chief Executive Officer (CEO) and President is Kim Dong Seol. Under his
leadership, the company expanded its operations, earned accreditation from the International Air
Transport Association (IATA) in 2001, and achieved ISO 9001:2008 certification in 2011. His
strategic decisions and business mindset have played a major role in making Rakso Travel a trusted
name in the travel industry.

Kim Dong Seol has demonstrated a strong passion for travel and tourism, helping the
company adapt to the changing needs of travelers. He has been instrumental in establishing Rakso
Travel as a trusted provider of travel services not only in the Philippines but also in the international
market. His leadership reflects a commitment to customer satisfaction, service excellence, and
business innovation.

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 Initial Capital/Investment

While Rakso Travel has not publicly disclosed its starting capital, setting up a travel agency
of its size in the Philippines during the late 1990s typically required an investment of around PHP
500,000 to PHP 1,000,000. This would have covered office space, licensing, equipment, and initial
operations. Given Rakso Travel’s fast growth, their initial investment was likely significant.

Travel agencies require substantial investment in technology, training, and marketing to

compete in a competitive industry. Since Rakso Travel quickly expanded and established itself as a
major player, it is likely that they had strong financial backing and a well-thought-out business plan.

Business Purposes

1. Primary Purpose – To provide innovative and high-quality travel services, making

travel more accessible and enjoyable for customers. Rakso Travel aims to help travelers
experience new destinations with ease and comfort.
2. Secondary Purpose – To establish itself as a leading and trusted travel service
provider, both online and offline. The company works towards building a strong reputation in the
tourism industry, focusing on customer trust and reliability.
3. Tertiary Purpose – To contribute to the Philippine tourism industry by promoting
hassle-free and memorable travel experiences for both local and international tourists. Rakso
Travel seeks to boost tourism growth and create positive travel experiences that benefit both
travelers and the local economy.

Entrepreneurial Attributes of Kim Dong Seol

Kim Dong Seol demonstrates key qualities that define a successful entrepreneur:

Self-Awareness – He understands the travel market well and has made strategic
decisions to grow the company. His awareness of industry trends and customer preferences has
helped Rakso Travel maintain its competitive edge.

Self-Motivation – His leadership has led Rakso Travel to important milestones, including
international partnerships and the expansion of services. His dedication and hard work have been
key drivers of the company’s success.

Courage and Confidence – He has expanded the business beyond the Philippines,
making Rakso Travel an internationally recognized name. His willingness to take risks and
explore new opportunities has allowed the company to thrive in a competitive industry.

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 Positive Thinking and Patience – The company’s steady expansion reflects his long-
term vision and perseverance. He believes in continuous growth and improvement, ensuring that
Rakso Travel remains a trusted name in the industry.

Decisiveness – He has diversified the company’s services to adapt to industry trends and
customer needs. His ability to make quick and effective decisions has helped Rakso Travel
remain competitive in the fast-changing travel industry.

Experience and Prior Knowledge – While details about his past experience are limited,
his ability to lead a successful company shows strong business acumen and knowledge of the
tourism sector. His experience in the industry has been instrumental in shaping Rakso Travel’s
strategies and operations.