Current Status of Business Organization and Implementation of Inbound Tourism Program at Lotus Tours Travel Company



2.2. Current status of business organization and implementation of Inbound tourism program at Lotus Tours travel company

2.2.1 Tour design and pricing

a. Tour Design

Based on the needs of tourists since the company's founding, specific programs (PROGRAM) have been created with famous landmarks and have received the attention of international visitors. For example, Program 1: Half

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– day city tour (China Town – Thien Hau Pagoda – Remmant War museum – Reunification Hall – Opera House – City hall – Drop at Main post Office & notre Dame Cathedral For Taking Picture); Program 2: Cu Chi Tunnel (Cu Chi used to be a bitter battleground for many years during the Viet Nam war. Visitors to our country can not miss visit to this “underground village” with the intricate network of over 200 km tunnels, then challenge yourselves with rifle shooting at shooting range),… With inbound guests, there will be a clear difference with domestic because visitors to our country often learn through websites on the internet or guide books, they can book Pick Up services then through the Brouches of the travel company have the choice and book the Tour later. Thus, visitors will have flexibility in time and find a suitable trip. But there are also cases through travel companies in their own country that have signed a contract with us to receive and send guests for the company. Depending on the need to learn or relax, customers also have additional requests about locations or services with the company so that the design department can come up with a suitable program as desired by the customer. Because they are foreign customers, their time is also limited, so there are very few multi-day tours to explore all of our national identities. Instead, tourists often choose typical locations with a bit of rustic simplicity of the Vietnamese people close to daily life to better understand Vietnam.

To have an enjoyable trip for tourists, the quality of service is also very important because for foreign tourists, quality is very important to ensure comfort without any inconvenience or dissatisfaction. We must design suitable destinations, choose good services in terms of hotels (3 stars or more) with international standards, food and beverage, and transportation. We all need to have choices for customers because only with those standards can we serve customers well, understand what customers need and complete quickly and effectively.


b. Tour price calculation

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As a travel company that is linked with other service companies through specific contracts and from there has preferential prices, the company always updates data on hotel room prices, transportation, restaurants, sightseeing tickets, etc. With modern means such as telephone, fax, mail, etc., companies can easily contact each other and get contract prices to put into available spreadsheets with different profit margins of 10%, 15%, etc. We have different prices to quote to customers and depending on the company's policy, we can get the price allowed to sell so that in addition to the cost of implementing the tour program, we also have other fixed costs that need to be paid such as: renting premises, phone bills, paying salaries to employees, etc.

With a new Tour program, the costs in it also arise many additional items, but with the connection that we have specific prices then put into an available excel program based on specific categories of fixed costs, variable costs thanks to advanced technology with application functions, the company will quickly get the ceiling price, or the price with how much profit % for how many customers are easily and quickly obtained to help the company's policy to be carried out more smoothly to achieve the sales that the company sets.

Compared to what we learned in school, the calculation method is the same, only the method is different. As for transportation, the additional fee for the driver will be calculated in km, such as: from Ho Chi Minh City to Cu Chi is about 66 km, but the price will be calculated for 150 km, including the driver's fee.

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SAI GON - CITY - CU CHI - PHAN THIET - MEKONG (8D- 5N)


Tour code:

TOU.08- 120201. GIT

Programme

ST D

SU P

DL

X


Personal expenses


General expenses


Itinerary


hotel price


Eat and drink


MB Tickets

Tickets

n


Other


Water / Hat / Towel


Transport


Instruct


T

oh

Road tolls

ARRIVA L SAIGON


SU


32


62

13

2






1


70


15







27









CU CHI –

CITY

32

62

13

2

8


7


1

220

20
















MUSEUM

– ZOO

32

62

13

2

8


2


1

80

20
















PART

THIET - MUI NE


37


45


65


8





1


500


20







9






10



PART

THIET - SAIGON


32


62

13

2


8



1



1



20
















SAIGON

- MT - CAN THO


38


61


15

1


8



3



1


420


20


23






9






10



CAN

THO - SAIGON


32


62

13

2


8



3



1



20


23















LEAVE








1

70

15





118

M


208

43

8


93


0


15


0


8


1360


170


45


0

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Current Status of Business Organization and Implementation of Inbound Tourism Program at Lotus Tours Travel Company



Group Size

1 pax

2-3





4-8

9-15

16-

20

21-

30


1

2

3


4

5

4

9

15

20

Car rate

(VND/km)

6500

700

0

700

0


750

0

7500

850

0

9500

1300

0

1500

0

Transport

Price (p/p)

442

238

159


128

102

145

72

59

51

Individual Cost STD

(p/p)


351


233


194


233


233


233


233


233


233


233

% STD PROFIT


30%

20

%


20%




30

%


40%


45%


45%

NET Cost

STD

1008

579

424

118

415

378

432

329

314

295

PROFIT STD

302

116

85

0

0

0

129

132

141

133


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Table 2.4 – Tour price calculation table

The price list is quite detailed, how many passengers, how many days will be calculated, how many kilometers and the appropriate price per km is 6,000/km; 7,000/km or 7,5000/km. In addition, the time of using the transportation service is also quite important, such as picking up at the airport is 70 km, but also picking up at the airport after 20:00 will be calculated as 80 km. A very important point is that we will not include insurance when calculating the price for inbound customers because our country's insurance is not enough to cover foreign customers.


2.2.2 Organizing promotion and marketing of tourism products






-


-


more .





.

-



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2.2.3 Organization of CTDL implementation

Compared to other companies, which have separate sales and operations departments, but with

Board of Directors

11

12

7

9*

6

Business Department Operations Department

5

3

4

8

9

11

Product Department

10*

10

2

Accounting Department

Client

1

The company size is not yet in the guide.

so the tour desk staff will also operate the vehicle and


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Diagram 2.3 – Tour implementation process of Lotus Tours


2.2.3.1 Prepare tour program

(1) Customers send bookings to the Sales Department to request

On-demand service combined with the company's existing Brochure program.

(2) The sales department sends a request (contents include: how much does each meal cost and the name of the restaurant if requested; which hotel? How many rooms and what type of room? What type of vehicle and how many seats?; What language does the tour guide speak?; Are sightseeing or boat fees included?; Welcome board; International and domestic flight information; Detailed tour itinerary; ……to the Operations Department)

proceed to order services according to customer's request. Request to order services

must have tour code according to regulationsfor example:

Sales staff name: consists of 2 letters. In case of tour desk, the regulations are as follows: Palace Desk: PL , Lotus Desk: BS

Example: KM/NDD/HAXACO/DL.04-010711 (KM: Kim Minh: is the code)

of the sales staff of this group; NDD: Domestic tour program for the group/ HAXACO: customer is HAXACO company; DL: Da Lat tour program; 04: is the number of days/length of the tour; 010711: July 1, 2011 is the departure date of the group)

If it is a retail service, the tour name is replaced with: Hotel – HTL,

Vehicle – CAR, Tour guide – GUI, Air ticket – TKT, Golf – GOF, Car & guide-CNG, etc…


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For Tour Desks: when receiving service requests from customers, sales staff will proceed to book hotel rooms, transportation services, tour guides, etc. according to customer requests. The company's operations department is responsible for supporting tour desks in updating price lists and information on service arrangements.

(3) The Operations Department proceeds to book related services such as hotels, restaurants, trains, cars, tour guides, etc. and confirms the status of the requested services to the Sales Department.

(4) Sales department records payment bill and monitors full payment.

of the customer.

(5) The Sales Department sends a request to the Accounting Department to issue an invoice to the customer, including: partner and contact information; what service? selling price and number of customers; number of departure days and from which date to which date?

(6) The sales department prepares a memorandum or contract with the customer (in case this is a first-time customer) and sends an invoice for the customer to pay & send a voucher if the customer only books individual services such as hotel & transportation).

For foreign partners, after receiving the order, they will design and select a supplier to calculate the total price, then reply to the partner by fax and ask the partner to reply soon. The company will ask the partner to deposit a sum of money if the tour program is accepted and reconfirmed by the partner company. Depending on the relationship of each company, this amount will vary. The company will negotiate with the partner on the % of the contract to be paid in advance, the rest will be paid when the group arrives or a few days before the group arrives.

The operator is responsible for booking rooms, ordering meals, coordinating vehicles, coordinating guides, etc. Bookings must be made as soon as the partner reconfirms to have the services when the group arrives. If the partner later cancels the contract, the company will cancel the orders. All contract penalties are determined by the two parties in the contract.

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20 days before the group's arrival is the deadline for the partner to pay the full amount to the company (this deadline also depends on the relationship between the two parties and the contract), the operator will fax to confirm again with the partner to see if there are any changes or difficulties, if there are any, they will work together to resolve the issue and revise the orders with the supplier.


2.2.3.2 Implementing the tour program

The operations department monitors and checks to ensure that services are provided in full and of the correct type, and that there is no room for cutting or changing services in the tour program. If unexpected situations occur such as lost luggage, accidents, sick guests, etc., the tour guide will directly contact the operations department to find effective solutions.

The tour guide will be the one who directly welcomes guests, guides, serves guests with food, stays at hotels and restaurants, guides tours, handles unexpected situations (guests lose luggage, sick guests, etc.), pays or signs confirmation with service providers in the program and finally sees guests off. During the trip, the tour guide will represent the company to fulfill his/her duties.

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