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Development Orientation of Lu A Viet Outdoor Company Limited for the period 2010-2015.

Cancellation policy:

Cancel ticket before ticket issuance time: Pay 10% of cost (air ticket + tour)

Cancel ticket 5 days before departure: 10% (air ticket + 30% tour)

Distribution policy

The company simultaneously implements many different distribution policies, mainly direct distribution to consumers. Distribution through intermediaries and online channels is not yet popular.

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The company has a very attractive commission policy for tour brokers.

Cooperate with some travel companies to organize tours upon request.

Development Orientation of Lu A Viet Outdoor Company Limited for the period 2010-2015.

In general, Lua Viet's distribution policy is still quite monotonous and unprofessional.

When a broker sells a tour, Lua Viet has a commission policy of 15%.

USD/customer or more, this is a pretty attractive commission policy.

Advertising and marketing policy

Nowadays, under fierce competitive pressure, companies that want to sell products need to promote marketing and advertising.

Lua Viet's advertising policy includes:

Advertise on the Company's website at: http /www.luaviettour.com )

Publishing Brochures

Available tour programs sent to customers, directly or via fax

Have a banner at the headquarters in front of the Company

Through tourism exhibitions

Through Company staff

Through television (HTV 7 television station)

Through charity

In addition, there are promotional policies for customers, for example, when customers buy a Cambodia tour of 4 tickets or more, they will receive a discount of 5 USD/ticket. In addition, they will also receive a Phs ar scarf or an Apasar wooden statue and a book.

Things to know when traveling to Cambodia, in addition, other domestic and foreign tours also have different quite attractive promotional policies.

However, only a few forms are effective such as on websites, at tourism exhibitions or programs sent to customers, so the effectiveness is not as expected. Television advertising has low duration and low frequency, so only a small number of customers know about it. Newspaper advertising has not received much attention while for many other companies, this is the main form.

2.2.4 SWOT analysis of Lua Viet Picnic Co., Ltd.

2.2.4.1 Strengths

Conveniently located, adjacent to District 1 & District 5, near the center of the most developed tourist city in the country, so there will be many conditions to attract tourists to the company.

Having a relatively long business period (11 years), we have accumulated a lot of experience in business, organization and operation, and many customers know the company's brand.

During the process of formation and development, we have achieved many awards such as

- Certificate of merit from the Central Secretary of the Ho Chi Minh Communist Youth Union

- Certificate of Merit from the President of the Vietnam Women's Union

- Certificate of Merit from Ho Chi Minh City Red Cross Society

- Medal for the Vietnamese Peasant Class of the Central Committee of the Vietnam Peasants' Union

- Certificate of merit from HCM City Department of Tourism

- Certificate of merit from the Department of Labor, Invalids and Social Affairs

- Certificate of merit from HCM City People's Committee

- For 3 consecutive years 2003 - 2004 - 2005 and recently 2008, 2009, Saigon Marketing Newspaper and consumers voted "Most Satisfied Travel Business".

Will be the basis to strengthen customer trust.

Having a large team of staff and tour guides who are good at their job, highly educated and fluent in many languages ​​(English, French, Cambodian...) are advantages that not every travel agency has.

Having advantages in organizing cheerleading as well as experience in outdoor activities and group ticket business, will be the premise to exploit the Team building type and Mice market better.

With a director who is dedicated to his work, steering the company into a development orbit and creating a unique identity for the company compared to a series of other companies in Ho Chi Minh City, Lua Viet still has a certain position in the minds of customers and is increasingly consolidated.

2.2.4.2 Weaknesses

o The business premises are not large enough and are located in a rather old apartment building, hindering the Company's business in the context of competing companies that must have large, modern premises located in the center.

o Does not have its own training facilities for tourism human resources like Saigontourist and Mai Linh companies. The connection with schools is still weak, the company's human resources are still limited, at least during peak seasons when there is a shortage of human resources, so H DV has to patch together many different sources.

o Although it is a large enterprise, the Company does not have any accommodation facilities (joint ventures - construction investment) at domestic tourist destinations. The connection with companies outside the territory is also poor, so it cannot attract tourists to Vietnam.

o The company does not have its own fleet of vehicles, so renting will increase costs and reduce price competitiveness compared to competitors.

o The scale of operating capital is still low (only about 3 billion) which is too little for an international travel agency like Lua Viet.

o The lack of professionalism and poor foreign language skills of some staff and tour guides has created a bad impression of the company for tourists, causing

The reputation of the company is reduced, especially for tour guides from schools that do not specialize in tourism training.

2.2.4.3 Opportunity

Vietnam has a stable political situation, fast economic growth, and good security in the region, which has gradually changed the image of Vietnam associated with war in the past. Vietnam is in the top 4 friendly destinations in Asia, from which the number of international visitors to our country will increase.

State policy focuses on creating favorable conditions for tourism development. Building tourism infrastructure such as specialized ports to serve tourism. Opening a series of international airports ( Cam Ranh - Long Thanh - Can Tho - Phu Quoc - Cai Lan - Chu Lai ..), Opening more direct flights to key markets, proposing to exploit VISA issuance right at international border gates, exempting VISA for tourists coming to Vietnam.

The world and domestic economy are on the path of recovery, the tourism industry also has many prospects for development in the coming years.

Vietnam tourism industry is making many efforts in promotion strategy.

widely in many key markets, attracting international visitors with great expectations.

Major national events such as long holidays April 30 - May 1, September 2, Christmas. Lunar New Year are also opportunities for companies to exploit, especially the 1000th Thang Long - Hanoi festival, which is considered a golden opportunity for the country's tourism industry. After the success of the program "Impressive Vietnam", in 2009 , the number of domestic tourists increased by 20% compared to 2008 and reached about 25 million people. In 2010, Vietnam continued to launch a tourism stimulus program called: " Vietnam - Your Destination ". On this occasion, Lua Viet also participated in the stimulus program launched by the Ministry of Culture, Sports and Tourism to attract visitors and committed not to increase prices.

The average income per capita of Ho Chi Minh City residents is over 2000 USD/year, among the highest in the country, which will be a very potential market for both domestic and international travel, so the company has favorable conditions to exploit customer sources.

Countries around the world are increasingly simplifying VISA procedures, expanding bilateral relations and strongly stimulating tourism, typically Thailand.

When the tourism industry inspects, travel agencies that do not meet the operating conditions will have to close down, which will be an opportunity for legitimate companies to increase their market share.

2.2.4.4 Challenges

The global economic crisis has not yet passed. The political situation in the Asia Pacific region is becoming more complicated (anti-government protests in Thailand, instability on the Korean peninsula), in addition to natural disasters, epidemics, and terrorism, which are potential causes hindering the number of visitors to Vietnam and Vietnamese tourists going abroad.

The political situation in Vietnam is stable, but the situation of begging, stalking, and street vending has not improved, causing significant impact on the national image.

The problem of environmental pollution in big cities is still increasing, the situation is

Climate change (unusual heat, floods...) Traffic infrastructure, especially traffic jams caused by "Lo Cot" and motorbikes in Hanoi and Ho Chi Minh City, hinder the development of the tourism industry.

Public works and entertainment are too few and poor in content, so they are not attractive to tourists, leading to the sad situation that up to 70% of international visitors: " go once and never return ".

The hotel room system and transportation services are still lacking, especially during holidays, leading to overcharging customers during peak seasons, reducing the reputation of our country's tourism industry.

In general, Lua Viet's tour prices are still high compared to other travel agencies of the same type.

Unhealthy competition from illegal travel agencies (operating without proper travel licenses) has caused many difficulties for legitimate companies such as dumping products, organizing tours for tourists that are not in accordance with their functions and tasks...

Integrating into the regional and world economy, many famous travel agencies in the world have entered the Vietnamese market with financial potential and capacity.

Better management will lead to competitive disadvantage especially for small and medium sized companies.

CHAPTER G 3

SOME SOLUTIONS AND RECOMMENDATIONS TO IMPROVE TRAVEL BUSINESS EFFICIENCY AT LU A VIET OUTDOOR COMPANY LIMITED.


3.1 DEVELOPMENT ORIENTATION OF A VIET OUTDOOR TRAVEL COMPANY LIMITED IN THE PERIOD 2010-2015.

3.1.1 Determine business direction in the coming years

In the coming years, it is predicted that there will be stronger competition, many companies will join the industry, many travel agencies will participate in international travel business, domestically there is a situation of unhealthy competition of illegal travel agencies, according to the report of the Department of Tourism, that number should be up to thousands of unqualified companies still participating in activities.

Not to mention the big name brands competing with each other. According to statistics

According to the Department of Culture, Sports and Tourism, as of September 22, 2008, in Ho Chi Minh City alone, there were 278 international travel agencies registered to operate, thousands of domestic travel agencies, and at this point that number is much larger. Therefore, the advantage will belong to companies larger than Lua Viet in terms of capital and human resources.

Faced with the above difficulties, Lua Viet must build for itself a suitable business direction, both limiting negative impacts and having development in all aspects, before the wave of foreign investment in Vietnam, the MICE market (both domestic and international) is dominant, this is a new market that has not been exploited much, when people's income increases and travel becomes easier, a large number of people travel abroad to combine finding investment opportunities and visiting relatives, overseas Vietnamese also return home more, so the demand for domestic tourism is very high with high-end tours in a short period of time. The goal is to be in the top 10 leading travel agencies in Ho Chi Minh City.

Build a tour program with a unique identity, only then can it survive in a context of fierce competition.

3.1.2 Goals for the coming years

- The target of increasing annual revenue from 10 to 15% corresponding to the growth in customer volume is completely feasible while maintaining the company's market share.

- The target number of guests served by 2015 is about 80,000 guests/year.

- Equitize the Company according to the roadmap before 2015 because the current trend of equitization is very popular, Lua Viet is no exception, equitization will help the company develop even faster. Sell market shares to employees and partners of the Company to increase the charter capital and employees will see the Company's profits as their own profits, from which they will work harder.

- Maintain the title of always being in the top 10 domestic travel agencies in Vietnam and

of Ho Chi Minh City

- Make the Lua Viet brand more and more popular among domestic customers.

As the barriers to tourism are removed, the number of international visitors, especially

ASEAN countries (ASEAN common market), Northeast Asian countries (China - Japan - Korea), Russia - India, the United States will come to our country to travel a lot, so it is necessary to build products suitable for each different culture, only then can we exploit this profitable market well.

Domestic customers will also have more suitable changing needs in terms of customer target (age, gender, region).

The viewpoints that need to be thoroughly understood when implementing the goals

Organization and personnel arrangement need to be in depth to suit individual capabilities and business operations.

Make employees understand the meaning of the directions and thereby strive to maximize their own capacity to complete all assigned plans well.

Review costs (direct - indirect) to cut unnecessary costs, always look for new suppliers with quality and competitive prices, avoid negative factors affecting program prices and maintain reputable traditional and business partners.

Have appropriate training and treatment policies, especially for good employees so that they can maximize their ability to serve the company. Build corporate culture

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