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AI Soft, a 4-year-old local software company, plans to shift its focus from being a software developer to providing software services for online travel agents and all businesses in the tourism sector, with the hope that services will provide about 80 per cent of its revenue by 2010.

Kittikorn Kummalekha, its 34-year-old managing director, said the company's software-services business will be built on Web-based application tools for the tourism sector, which will drive the company's growth in the long run.

To craft this transformation, Kittikorn said, the company needs to expand its core business -- selling Internet-based applications for the travel business, especially for travel agents and other categories, such as hotel, tour, travel insurance, car rental and transportation.

It also needs to change its revenue model from selling software license to charging customers per transaction.

He also said that this was the model that the company should stick with if it wants to achieve sustainable growth.

The software company should maintain a service-to-software revenue ration of 80:20, instead of the 20:80, as it is today.

AI Soft's products leverage business networks in the travel industry. Its flagship product -- +IBE, short for Internet Booking Engine -- helps travel agents expand their business to the online arena.

It has already gained a majority market share in this segment. It is now time for the company to move on to related business areas in the travel industry.

+IBE allows websites to be connected to the online ticketing systems of airlines worldwide, especially on the Amadeus network, to provide an online, real-time online ticketing service. The application has been helping travel agents move their reservation department on to the Internet and operate as a virtual travel agency.

The services offered include flight scheduling, tax calculation on fares and ticket reservations and confirmations.

"The company is now widening its focus to provide software as a service for tourism businesses and shifting to play the role of a software-service provider. Customers will be able to use the software as they need it, instead of buying it. We also need to get more customers in such new market areas to connect to our business network," Kittikorn said.

The company also plans to intensify its focus on the overseas market. Instead of selling software licences for +IBE's standard version to Amadeus Asia Pacific, it plans to provide software customisation services for overseas customers.

Currently, about 50 travel agents in the country and 55 travel agencies overseas use +IBE.

"We started selling to the overseas market only since last year's third quarter. About 20 per cent of our last year's revenue came from the overseas market, while 80 per cent came from the domestic market. Our total revenue was about Bt30 million," Kittikorn said.

This year, the company expects to attain a revenue growth rate of 100 per cent, with the overseas market contributing about 80 per cent.

It expects to increase its revenue to Bt60 million by 2010.