Travel agencies are a cell, a unit that makes up the tourism industry. It has the role of promoting or limiting the development of the tourism industry. If each travel agency operates effectively, it will create favorable conditions for the tourism industry in particular and the entire economy in general.
For other businesses
Every business enterprise is in a general relationship with other enterprises in the market. And travel enterprises are no exception to this rule. Travel enterprises promote the development of other enterprises and industries, which is reflected in the fact that travel enterprises use the output of other industries to serve their production and business activities.
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When tourism develops, many tourist routes will open up, especially local destinations. This will help local residents broaden their knowledge, give them business opportunities and, more importantly, create jobs for the people here.
1.3.5.2 Characteristics of travel business
First of all, it is necessary to understand: Tour operators bussiness is the act of conducting market research, establishing full or partial tour programs, advertising and selling these programs directly or indirectly through intermediaries or representative offices that organize programs and tour guides. Tour operators business is a type of service business. Therefore, tour operators business has the following characteristics:
Characteristics of travel products
Tourism products are synthetic in nature: tourism products are a combination of many services: transportation, accommodation, food and beverage services,... of individual manufacturers into a complete new product. Tourism products are package tours.
(package tour) or in parts. Customers must pay the full price for all services in the tour program before traveling.
Travel products are not uniform due to the times of supply because the quality of the service depends on the psychology and emotional state of both the service provider and the receiver. These factors change and are affected by many factors at different times. Travel products include activities that take place throughout the process from the time of receiving guests upon request, until the guests return to the starting point: activities that ensure the essential needs of guests such as travel, accommodation, security, etc. Unlike other material production industries, travel products cannot be preserved, stored, or stored, and the price of travel products is highly flexible. Package travel programs are considered a typical product in the travel business. A package travel program can be performed many times at different times.
The travel business is highly seasonal.
In other seasons of the year, the needs of tourists are also different. For example, in the summer, beach tourism increases but in the winter, it is the opposite. In the spring, the demand for festival tourism also increases sharply, making the tourism business seasonal. Therefore, in the tourism business, managers must grasp the seasonality in order to limit seasonality, maintain a steady pace of development and improve the efficiency of tourism business.
Characteristics of the relationship between production and consumption in tourism business
The production and consumption of tourism products take place at the same time. In the tourism business, we only serve tourists when they are present during the service process. Customers can be considered as the "input material" in the tourism production and business process. Therefore, in the tourism business, products cannot be produced in advance. The production and consumption of tourism products take place in the same space. Tourism products cannot be transported to the place where customers are served. Customers can only satisfy their needs when they move and meet. Therefore, customers are a direct participant that cannot be separated from the production process.
In addition to the above characteristics, tourism business activities also depend a lot on natural factors, free time, education level as well as people's income. From the above basic characteristics, it can be seen that tourism business is very risky, it requires travel companies to have a wide relationship with partners, reliable suppliers and professional staff.
1.3.6 Travel business
1.3.6.1 Definition
According to the tourism management regulations of the General Department of Tourism: " A travel business is a legal entity with independent accounting established for the purpose of making profits by signing tourism contracts and organizing programs sold to tourists".
1.3.6.2 The role of travel agencies
The establishment of travel agencies has helped tourists have favorable conditions and feel more comfortable and secure, saving time and money during their travel. Compared to organizing a personal trip, the price of a trip through a travel agency is relatively cheap. Tourists will enjoy a variety of attractive programs that are organized in the most scientific way.
On the supplier side, thanks to travel companies, they can reduce some of the passivity in product consumption, reduce the risk due to unusual number of customers, increase the ability to attract customers as well as the consumption of their products to focus on production, expand scale and diversify products, create new services to serve the needs of tourists.
Travel companies also attract and organize to send tourists to tourist destinations, creating conditions for businesses there to exploit the best operating capacity of their technical infrastructure system.
1.3.6.3 Classification of travel businesses
* Classification by scope of operation .
- Domestic travel businesses: are responsible for building, selling and implementing domestic travel programs, accepting commissions to implement program services for foreign guests brought into Vietnam by international travel businesses.
According to Vietnam Tourism Law, Article 44 stipulates the conditions for domestic travel business as follows:
Registered domestic travel business at competent business registration agency.
Have a domestic travel business plan, have a tour program for customers
inland
Domestic travel business operators must have at least
3 years of experience in the travel industry.
- International travel agencies: are responsible for developing and selling full or partial tour programs according to customers' requests to directly attract customers to Vietnam and bring Vietnamese citizens and foreigners residing in Vietnam to travel abroad. Implement tour programs that have been sold or sign contracts to entrust part or full packages to domestic travel agencies.
According to Vietnam Tourism Law, Article 46 stipulates the conditions for international travel business as follows:
Have an international travel business license issued by the central state tourism management agency.
Have a travel business plan and a travel program for international tourists within the scope of business specified in Clause 1, Article 47 of this Law.
International travel business operators must have at least four years of experience in the travel industry.
Have at least 3 tour guides with international tour guide cards.
Have a deposit according to government regulations.
* Classification by scale and method of operation .
- Travel agency: operates mainly as an intermediary service to consume and sell products independently and individually for tourism producers to receive commissions as a percentage of the selling price.
- Travel agency receiving guests: including receiving international guests, the main activity is to build travel programs and organize travel programs sold to guests through travel agencies sending guests. This type of business is suitable for places with famous tourism resources.
- Tourist travel agency: including both international and domestic tour operators, the company's main activity is to organize direct tourist attraction to bring tourists to famous tourist destinations. This type of company is often established in places with high tourism demand.
- General travel company: is a company that directly exploits customer sources and also takes on the task of organizing tourism programs.
1.3.7 Travel business products
1.3.7.1 Concept of tourism products
Products in a travel business are the types of services that the business provides to tourists: travel services, information provision and consulting services, travel agencies... The services that make up the products of a travel business are mostly provided by partners. Travel agencies use the products of that system to produce their own typical products to provide to tourists in a specific space and time. Based on the nature and content of travel products, the products of a travel business can be divided into three basic groups: intermediary services (DVTG), full-package travel services and other services.
1.3.7.2 Travel business product system
The products of DVTG are mainly provided by travel agents. In this activity, travel agents carry out the activities of selling the products of manufacturers to tourists. Travel agents do not organize the production of their own products but only act as a point of sale for the products of tourism manufacturers. DVTG mainly includes: booking and selling tickets for other means of transport such as: ships, railways, cars, car rental brokerage and insurance sales, booking and selling travel programs, hotel reservations and other intermediary brokerage services.
Package tours: Package tours are typical of tourism activities. Travel agencies combine the products of individual manufacturers into a complete product and sell it to tourists. When organizing package tours, travel agencies have a much higher responsibility towards tourists as well as manufacturers than intermediaries.
Other services: in the process of travel companies can expand their business scope to become direct producers of tourism products. For that reason, the world's largest travel companies operate mostly in tourism-related fields: hotel business, restaurant business, entertainment services business, travel transportation, banking services business serving tourists. These services are often a combination and cooperation, association in tourism. The more diverse the product system of travel, the more the travel business develops. However, travel businesses need to note that: customer needs are highly synthetic. Therefore, if travel businesses want to develop, they must meet that need with the comprehensive diversity of the product system. However, the business is the one who signs the contract and represents the sale to the direct manufacturer. So to avoid risks and ensure long-term maintenance, travel businesses need to choose reliable and reputable suppliers and agents for businesses.
1.4 Business performance of travel companies
1.4.1 Economic efficiency
1.4.1.1 Concept
In the current market economy, to survive and develop, businesses must consider efficiency in every business plan as well as anticipate complex market developments. In other words, efficiency is always the top concern of every business.
Efficiency can be generally understood as an indicator reflecting the level of use of necessary factors to participate in activities to achieve certain goals of each person.
Basically, efficiency is reflected in two aspects: economic efficiency and social efficiency.
festival.
Economic efficiency reflects the level of use of resources (human, financial, material).
resources (force, capital) to achieve a defined goal.
Social efficiency reflects the level of use of resources to achieve social goals such as creating jobs within society or each region, improving living standards, and improving the cultural and spiritual life of all classes of people.
1.4.1.2 Indicators for evaluating the effectiveness of travel business
Revenue.
This is the most general indicator reflecting the business activities of an enterprise. This indicator not only reflects the company's travel business results but is also used to consider each type of tourism program of the enterprise in which stage of the product life cycle. On the other hand, it is also the basis for calculating the net profit and business efficiency of the company. Revenue is also an important source to ensure the coverage of business expenses and other expenses. The higher the revenue, the greater the business activities. To achieve high revenue, enterprises need to strive from all angles such as increasing selling prices, increasing the number of customers, increasing the spending ability of customers, and extending the time customers participate in the program.
This index is determined by the formula:
In there:
n
DT = Σ PiQi
i=1
DT: total revenue from tourism program.
P: tour price for one guest. Q: number of guests in a tour.
n: number of trips the company makes.
The revenue of a tour i depends on the selling price and the number of passengers on that tour. The total revenue from the tourism business program is the total revenue of n tours that the company conducts during the period.
Expense.
This indicator reflects the level of investment of the enterprise during the analysis period. This indicator is calculated as follows:
In there:
n TC = Σ Ci
i = 1
TC: total cost for tourism programs during the period. Ci: cost used to implement tourism program No. in: number of tourism programs implemented.
The cost of the period is equal to the total cost of the tour program during the period. The cost of implementing the i-th tour program is all the necessary costs to implement the tour program such as entrance tickets, tour guides, food and accommodation and other services. If the cost that a business has to pay for a tour service program is lower, it will reduce the cost of the product, lower the selling price, and reduce the competition of competitors.
In business, cost savings is the goal that any business strives for, which means minimizing what is added besides the cost of purchasing services, reducing the cost of recruiting labor and the cost of customer service transactions.
…is very necessary. Therefore, the company's spending must have a clear plan.