Singapore- More small and medium size companies (SMEs) are turning to the Internet for their travel needs because of convenience and cost savings, and Singapore-based online travel agency, Zuji, plans to develop new software and some basic expenditure tracking capabilities to cater to the sector.

Zuji claims an estimated 10 to 15 per cent of its bookings are from SMEs. CEO, Mr Scott Blume, emphasised its plans to increase share of SMEs "are not a short-term opportunity nor goal". Borrowing a leaf from its US-based counterpart, Expedia, Zuji hopes to eventually enhance its offerings to provide full travel management services for this niche sector.

He claims traditional travel agents are losing the SMEs because of poor management. The proliferation of low-cost carriers is another factor that pushes more people to the web.

"And this is to our benefit, to the airlines' benefit, and to the benefit of those businesses with true online 24/7 capabilities," Mr Blume said.

He added the online environment was most conducive for the SME traveller, whom he defined as an extremely price-sensitive individual who tended to make last-minute bookings.

Last year, research conducted by Zuji on its own customers showed about 67 per cent of its clients anticipated making one business trip and 15 per cent making six trips or more.

ZUJI is expecting double-digit sales growth for its total business in 2005 and the SME segment to make up 20 per cent of it. The company has estimated the value of its SME bookings would be greater than US$20 million in the next 12 months.

But a spokesman from the Association of Small & Medium Enterprises Singapore said some SMEs still preferred going through a brick-and-mortar travel agent.

She said: "How an SME books a business trip is very much on a case-by-case basis and they would rather someone else do the leg work for them."

CEM Consulting group project director, Mr Edmund Chee, has been booking online for the past year and has seen his cost for business trips go down by 20 to 30 per cent compared to when he books through agents, which he has done for 10 years.

"I need realtime information as my trips are often unplanned and on an ad-hoc basis depending on project requirements and clients' request. I need information fast because every second counts. Booking through travel agents often require waiting for confirmation."

He also said booking online minimised human errors as the middleman was omitted. There are an estimated 90,000 SMEs in Singapore.