Company Business Summary 2018 and 2019

Therefore, the low season price that the company offers is about 12,134% lower than the high season. Because the company is closely linked with transportation and accommodation providers, it maintains stable prices for tourists.

Price policy for individual and group customers

For individual customers, the company usually sends customers to other travel partners, so the tour price depends largely on the partner, the company only acts as an intermediary to benefit from the commission. For the same tour, the tour price for individual customers is often higher than the tour price for group customers (10-20%) depending on the time and the company's partners. Compared to current conditions, the company has built a relatively good price that is highly competitive with other competitors. For the same tour and the same activities in the tour, the company's tour price is often lower than other companies. This creates an advantage for the company in competing with other travel companies. The low tour price also reduces the company's profits, but this is unavoidable because the company has determined to take the price and quality of the tour as the foundation to compete in the tourism market. The price of travel products is very diverse and easy to adjust and change while still ensuring profits. The price of a travel product depends on factors such as the number of component services of the product, the quality standards of each service. Changing one of these factors will increase or decrease the price of the product. Before consuming the product, customers find it difficult to evaluate these factors, but only feel whether the value is worth it or not after consuming it. At Phuong Dong S9 International Travel Company Limited, like other travel companies, it has applied pricing strategies according to the law of supply and demand, and the company's current price compared to the general level is not low. However, that is not a disadvantage of the company, so for travel products, low price is not the main factor in deciding to buy the product, low price often tends to make customers rate the product lower.

4.2.4.Business activities of the company

The company's business activities are divided into two parts: self-employment and cooperation with other travel companies.

Currently, the company has 2 main distribution channels:

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Figure 2.1: Distribution channel.

Direct channel (60%) Self-employed

Indirect channel (40%)

Links with other travel companies

Client

Source: Tour Management Department

- Live channel

Direct channel is the company itself searches for customers through its sales staff, through information on the website and customers themselves come to the company's address to register for tours. In 2018-2019, the Telesale team still brought 50% of the number of customers to the company. With the current conditions of the company, selling by phone is still the most feasible way. In addition, the company also conducts a number of other promotional activities. On the occasion of the annual opening ceremony of the school year at secondary schools, S9 Oriental International Travel Co., Ltd. awarded gifts (bags and notebooks) to students with difficult circumstances. On this occasion, the company also signed a memorandum of cooperation with the schools to support the schools in organizing extracurricular activities and will also discount tours for teachers and students of the school.

Direct distribution channels help companies proactively gain their own customer base, however, the cost to maintain this channel is quite high compared to other channels.

with the company's indirect channel because the maintenance cost for this channel is quite high such as sales staff, IT staff, ...

- Indirect channel

The indirect channel is to link with other travel companies such as: Van hoa viet, Du lich Hoan My... in this case, the company only acts as an agent for the above partners. For individual customers who are families, or customers who want to travel alone, the company organizes tours for them. With this channel, although the number of customers is not the highest, it brings the company stable customers from affiliated companies, however, the commission cost is also quite high (15%) for affiliated companies.

Table 4.5. Summary of the company's business performance in 2018 and 2019

Target	Unit	2018	2019	Absolute	Rate (%)
1	Revenue	Million Dong	12,386,492	23,597,134	11,210,642	47.5
2	Tour	Number of tours	89	179	90	50.27
3	Transport	People	4482	10,389	5907	56.85
4	Ticket sales commission	Million Dong	220,085	353,492	133,407	37.73
5	Other services	Million Dong	194	242	48	19.83

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Source: Company financial report 2018-2019

The biggest difficulty when using this distribution channel is that the customer information transmission line is quite long and sometimes inaccurate, unclear, incomplete, and the information related to the company's travel program to customers is sometimes delayed and inaccurate. Changing the content of the travel program to suit the needs of customers takes time and money for both parties. Not to mention the high price of a travel program.

higher than the price sold directly to customers because it has to go through many intermediaries. However, thanks to this distribution channel, the company exploits a large number of tourists due to the wide distribution of retail travel agents and travel companies sending customers from many countries around the world.

Compared to 2018, in 2019, revenue increased by 11,210,642 million VND (47.5%). All indicators changed in a positive direction. This is a positive sign for a commercial business unit because the Company has a suitable business direction. In the first 6 months of 2020, due to the tourism industry being heavily affected by the Covid 19 epidemic, the company's travel-related activities were almost suspended in March, April, and May. In June, thanks to the tourism industry's efforts to stimulate demand and Vietnam's control of the epidemic, the company's business activities returned. Statistics on the number of tours booked by the company in July 2020 are presented in the following table;

Table 4.6. Number of Tours in July 2020 of the company

Departure-destination	Number of groups	Total number of guests (people)
1	Quy Nhon – Tuy Hoa	4	135
2	Da Nang – Hue	3	96
3	Phu Quoc	4	156
4	Sapa	1	32
5	Sam Son	1	30
6	Saigon – The West	2	62
7	Ha Long	3	151
8	Cat Ba	4	215
9	Da Lat – Nha Trang	3	85

Source: S9 Oriental International Travel Company

Comment: In July 2020 alone, the number of groups that the company scheduled was 25 tours, with a total of 962 guests.

Over the years, S9 Oriental International Travel Co., Ltd. has constantly strived to improve and develop. Currently, the Company has become a large-scale production and business enterprise with high business management level. To achieve the current achievements, the Company has been sensitive and flexible in economic management as well as production management, and this is a positive factor in the development of the Company, creating a solid position in the market mechanism. To achieve the above achievements, the contribution is not small but the continuous efforts of the entire staff of the Company.

4.2.5. Evaluate company performance through customer feedback

Customers are the ones who use the company's products. Through customer feedback, the company can take steps to improve and correct errors to further improve its products. Through a survey of 30 customers who have used the tour services of Phuong Dong S9 Company, 15 customers traveling by road, 15 customers traveling by air, the results are summarized in the following table;

Table 4.7. Evaluation of company service activities through tourists' opinions

Content	Customer survey go by car			Customer survey fly
Content	Comedy heart	Jar often	Are not satisfied	Comedy heart	Jar often	Are not satisfied
1	Vehicle quality	7	6	2	10	5	0
2	Travel agent	11	4	0	13	2	0
3	Receptionist	10	5	0	12	3	0
4	Room quality	8	4	3	10	4	1
5	Meal quality	9	4	2	9	4	2

Source: S9 Oriental International Travel Company

Comments: The table shows that tourists are more satisfied with air service than with cars. Firstly, because of curiosity, they like the feeling of flying. Secondly, there are flight attendants.

No attentive and careful guidance and service. Third, traveling by plane has fewer sick passengers and is more airy.

4.2.6.Some activities to promote the company's business activities

- Promotional activities

Promotion is a very important element in the marketing mix, through the forms of promotion that the company's products are known to customers. Understanding that, S9 Oriental International Travel Co., Ltd. has launched many promotional activities to help customers know and use the company's products. In general, in the 2 years from 2018 to 2018, the promotional activities of S9 Oriental International Travel Co., Ltd. have had certain changes but are still based on 2 main platforms: advertising and promotion to attract customers.

- Promotional activities:

Promotions are a series of short-term incentives to encourage consumers to travel. In 2018-2019, S9 Oriental International Travel Co., Ltd. is the travel company with the most active promotional activities in the city. With many different forms of promotions for tourists. The company's promotional programs in 2018 are mainly based on tour program discounts, gifts or special programs in the tour. On the occasion of the beginning of spring 2018, S9 Oriental International Travel Co., Ltd. launched the Spring of Love program, when customers book a tour in groups (from 30 people or more) to the provinces of the Southwest region during the period from January 15 to January 25, 2018, they will receive a 15% discount on the total tour price. Also during this time, with the same number (over 30 guests), if customers register for a Phan Thiet tour, they will be given a cable car ticket to Ta Cu tourist area on the occasion of Valentine's Day (February 14). When registering for a tour to Phan Thiet on this day, customers who register for a tour in pairs will be given a ticket to bathe in the mineral spring at Tien Dat Resort by the company. In response to the tourism stimulus program on the

Low season (3,4,5) customers when registering for a conference tour (with a number of guests from 120 people) will be provided with free conference activities in the tour program by Phuong Dong S9 International Travel Company Limited (including conference hall and accompanying services). On the occasion of the summer of 2018, the company launched the program "Happy Summer" accordingly, when purchasing a tour from May 18 to September 15, 2018, customers will receive an immediate 10% discount on any tour price. From October 2018, the company officially launched the "Travel points" program, whereby for each tour costing 500,000, customers will accumulate 5 points and use these points when purchasing other tours of the company. Promotional activities The company's promotional activities in 2018 are still based on discounting tours, accumulating points for tours and giving away gifts. On the occasion of Tet, S9 Oriental International Travel Co., Ltd. launched the Spring Departure program for customers who register for Tet tours departing on the 2nd, 3rd, and 4th for all types of tours. Accordingly, in addition to still accumulating points, customers participating in game activities on the bus will have the opportunity to receive rewards such as lucky money bags worth from 50 to 200 thousand VND and many other valuable items. From May 15 to August 20, S9 Oriental International Travel Co., Ltd. launched the Summer Greeting program, according to which customers who register for tours: Western, Da Lat, Phu Yen and depart on Monday, Tuesday or Wednesday of the week (registering in groups of over 70 guests) will receive a 25% discount on the listed tour price. With the same conditions, but if customers register for sea tours such as: Nha Trang, Phu Quoc or Vung Tau... will receive a 15% discount on the listed price. On the occasion of International Children's Day June 1, the company launched a special program in which customers who register for a tour in a group of 30 people or more will receive free tickets for all children under 12 years old traveling with their family. On the occasion of Christmas and New Year 2018, 2019, Phuong Dong S9 International Travel Co., Ltd. launched a great promotion program for some tours, with discounts from

(20% - 25%) price for groups of 30 guests or more, tour departs on Mondays, Tuesdays, Wednesdays of the week. Specific prices are as follows:

- TOUR "DA LAT - BRIGHT FLOWERS" (3 days)

Promotional price: 2,450,000 VND/guest (25% discount)

- TOUR “NINH CHU - DA LAT” (4 days)

Promotional price: 2,690,000 VND/guest (20% discount)

- TOUR "NHA TRANG - DAI LANH CAPE - PHU YEN - GHANH DA

PLATE” (5 days)

Promotional price: 3,990,000 VND/guest (20% discount)

- TOUR “BAN ME THUOT – NHA TRANG” (5 days)

Promotional price: 2,990,000 VND/guest (20% discount)

- TOUR “HA TIEN – PHU QUOC – RACH GIA (4 days)

Promotional price: 3,990,000 VND/guest (20% discount)

Promotional activities in 2019 The company's promotional activities are the same as last year, offering discount programs at different times of the year and accumulating travel points to attract customers to buy tours. The highlight of this year is the Customer Appreciation program, according to which from May 15 to the end of August 2019, if customers have purchased tours from the company in 2015 and continue to purchase tours in 2018, in addition to the promotional programs the company is applying, customers will also receive an additional 5% discount on the total tour price (the program only applies to group customers).

Advertising and promotion activities

The telesale team still plays an important role in finding and promoting the company's tour products, however in 2019, S9 Oriental International Travel Company Limited has had many more channels to market the company's products to customers.

On March 1, 2018, the company registered a Pop-up advertisement on Vietmoi newspaper for a period of 1 month. With this form of advertisement, information about the company is