Financial Resources Solutions to Diversify European Tourism Products

among the expensive tourist destinations in the world; usually when traveling, people always want to rest in comfortable hotels, but the price to stay in those luxurious places is not cheap. Therefore, the Company can help tourists choose other forms such as homestay services (staying in people's private homes instead of hotels) which have been developed in developed countries for a long time; the homestay market in European countries is developing quite diversely, hierarchically to target each customer group. From cheap homestays that only require renting bunk beds to large-scale homestays that rent rooms like hotels, with impressive exterior designs; in addition, homestays also have warm, luxurious apartments for small families or groups of friends. With this form of accommodation, tourists will be able to reduce some expenses, moreover, tourists can participate in the daily activities of the people, chat and exchange with family members; thereby helping tourists have a closer and more realistic perspective on the lifestyle and culture of the place they visit.

3.2.2.3. Financial resource solutions to diversify European tourism products

For a tourism product to be formed and developed, an extremely important issue is to ensure capital to invest in the project, specifically:

- To diversify European tourism products, the Company needs more capital. To effectively use that capital, the Company needs to increase capital mobilization to expand capital sources in diversifying European tourism products. Therefore, the Company needs to determine:

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+ Goal of diversifying European tourism products;

+ Identify the list of tourism products and service products that need to be diversified;

+ Preliminary calculation of capital sources to implement those programs and projects;

+ From the above bases, the Company will determine the capital sources to be mobilized;

The company needs to proactively plan the investment budget for diversifying European tourism products, then submit it to the board of directors for approval. The budget for product diversification can be taken from a certain percentage of the total

The Company's revenue, this budget can change according to the results of tourism business. This will help the Company's management see the reasonableness in using investment capital to build new European tourism products as well as balance between investment capital and revenue. Based on the Company's business performance, especially in revenue from European tours and fluctuations in the tourism market, there is a plan to use the budget reasonably. Every year, every quarter, or every period, the Company should re-evaluate the capital source to depreciate, liquidate, and recover capital for reinvestment in its tourism products, as well as re-evaluate the efficiency of capital use to have a more effective solution.

- Viet Travel Joint Stock Company - Vietnam Tourism needs to focus on investing from the Company's budget in a synchronous, focused and key direction as a basis to stimulate tourism development in general as well as diversify European tourism products in particular. The Company is currently investing capital in many domestic and foreign tourism products, spreading capital over too many products will not make the investment efficiency high; therefore, the Company needs to identify unique, high-quality, attractive tourism products with good conditions in terms of technical facilities and additional services that fully satisfy the requirements of customers, have policies, management organization models and quality labor force... to increase investment sources further; therefore, focusing capital on developing key European tourism products is a priority direction and a solution to effectively use capital for tourism business development.

One of the things that helps the Company focus its capital on key activities is to reduce unnecessary costs; for example, reorganizing the human resource structure in a reasonable way, avoiding a cumbersome human resource system, causing waste of the company's financial resources. In fact, some or even many employees do not always use all of their working time, so the Company needs to re-evaluate the functions and tasks of employees, eliminating ineffective activities of employees if they do not bring about development efficiency.

development or not commensurate with the costs that the Company has spent on employees. Reducing costs but not by cutting employee salaries is an issue that the Company's board of directors needs to pay attention to; the Company can apply a bonus and treatment policy for employees in certain stages and based on the employee's contribution and capacity, not spread out to all or based on working time. This method will help employees have the motivation to work more actively and effectively, at the same time the Company's investments in employees are appropriate and not wasted.

- Not only effectively use capital but also need to mobilize more capital from outside to increase financial resources, helping the Company have more investment funds for diversifying European tourism products. The Company needs to increase the efficiency of capital use, especially working capital; in the Company's capital structure, short-term capital accounts for a high proportion, is an important part and has high profitability, so the Company needs to effectively use this capital source. Through annual financial reports, the Company needs to indicate fluctuations in short-term capital, the difference between short-term capital needs between planning and implementation; then continue to mobilize capital; The Company needs to be flexible in mobilizing capital from outside. The author proposes some ways to mobilize capital from external organizations such as:

+ Bank loans: In the context of increasingly fierce business competition, this is a very important source of capital; however, this is only a supplementary source of capital, not a long-term, regular source of capital for the Company. Therefore, the Company needs to expand its long-term and medium-term capital sources because balancing short-term, medium-term and long-term capital sources will help the Company reduce capital difficulties, have time to rotate capital to focus on investing in business development, bringing profits.

+ Capital Occupied: This is essentially the amount payable to suppliers, which tourists pay in advance for bookings. Although this is not an official source of capital, the Company can temporarily use it without having to pay costs.

for the use of this source of funds; however, this is a temporary source of capital for a short period of time, the Company cannot use it for long-term purposes.

+ On the other hand, the Company needs to seek support from the central government, local governments and investors to increase its capital sources; to serve the investment, upgrading of technical facilities as well as training to improve the quality of tourism human resources for the Company. For example, the Company can participate in tourism programs organized by local and central governments, coordinate with localities to carry out local tourism promotion campaigns, thereby being able to seek support from the local government.

+ In addition, the Company needs to proactively increase international integration and cooperation to take advantage of external resources, increase customer sources, investment capital and experience to contribute to ensuring the implementation of the process of diversifying tourism products; for example, the Company can seek foreign partners, connect in European countries where the Company organizes tours; finding foreign investors will help the Company have a larger source of capital, serving business activities more effectively.

3.2.3. Solutions to create compatibility between European tourism products and the Outbound market

To create compatibility between European tourism products and the Out-bound market at the present time, the Company needs to focus on two main issues (connecting customers between markets and inter-route tourism programs); these two issues have been given special attention by many travel agencies nationwide and have tended to invest seriously in order to attract customers back to the company and diversify the tours - markets at their company. The author proposes some ways to create compatibility between markets at the Company such as:

- Connecting customers between markets: It is necessary to strengthen customer care skills training for staff in order to create sympathy from customers when they first register for a tour at the Company; after creating sympathy, customers will have the need to participate or introduce to relatives and friends. When grasping preliminary information, the staff in charge will hand over to the customer

through another specialized consulting market, in order to increase the rate of closing customers faster and more effectively. According to the writer, the Company only needs to hand over one of its employee markets, at which time the person receiving the market will have more time to focus on creating efficiency and increasing sales for customers compared to the general market specialist. From the markets that are handed over individually, when receiving information, the staff will interact with each other between the markets in charge. For example, when a customer joins a tour to Korea, they will have a need to go to Europe or any other country, at that time the employee in charge must be responsible for handing over to the market that the customer requests. According to the writer's limited experience and assessment, if the Company follows the above proposal, it will create a close relationship between the markets and this is also the method that large travel agencies in the country are implementing.

- Inter-route tourism program: According to the Company's market development policy from 2017 to 2020, this topic has also been mentioned but has not been focused on much because it has more limitations than advantages. According to the writer's personal opinion, since 2017, the number of customers wishing to participate in inter-route tours has increased, and some units have implemented inter-route tourism programs very successfully and created their own brands. To do this, the Company needs to find more partners to provide services, train employees and need consultants to open inter-route markets together, typically inter-route tourism programs such as:

- Asia: Singapore – Malaysia – Indonesia, Cambodia – Laos – Thailand, Korea – Japan, Japan – Taiwan…

- Europe: France - Belgium - Germany - Netherlands

- Middle East – Europe: Dubai – Europe

- America: Canada – USA

These are just some suggestions to create compatibility between the Out-bound and European tourism markets.

3.3. Recommendations

a. For the State: It is necessary to strengthen State management to create conditions for tourism businesses to operate in the right direction and ensure business interests, specifically:

- Synchronously build and complete a suitable legal framework for state management of tourism activities;

- Develop a coordination mechanism, provide information exchange and specify the authority and responsibility of planning and investment agencies, departments, branches... and local People's Committees in supporting and managing the state for tourism businesses;

- Promote administrative procedure reform. The State needs to issue policies on administrative procedure reform in a simple and quick manner. For example: in granting visas or creating an equal, stable, open and favorable investment environment; encouraging businesses, especially foreign businesses and all economic sectors to enthusiastically invest in tourism business activities; encouraging healthy competition; moving towards unifying the business environment for all businesses participating in tourism business activities.

- The State creates all conditions for businesses to accumulate and increase the scale of investment capital for development, and quickly innovate technology to improve economic efficiency in tourism business.

b. For Viet Travel Joint Stock Company - Vietnam Tourism

- In addition to the main programs in the European tour, Viet Travel Joint Stock Company - Vietnam Tourism can research and develop other programs such as combined tours between European countries, Asia-Pacific, America... to increase the attractiveness as well as attract tourists.

- Developing European tours must be linked to local development goals as well as the national tourism development orientation; especially, the company's interests must be linked to socio-economic, community and environmental benefits.

- Developing European tours as well as other tourism products of the Company must always ensure sustainability in tourism development.

Chapter 3 Summary

The tourism development goal of Viet Travel Joint Stock Company - Vietnam Tourism is to become one of the leading travel agencies in the country, and to develop "Viet Travel - Vietnam Tourism" into a prestigious and unique brand not only domestically but also internationally. Based on its long-term goals, Viet Travel Joint Stock Company - Vietnam Tourism has set out the orientation for tourism business development as well as the development of European tourism products in particular; in which it is determined to build a strong brand along with improving the quality and diversifying the company's tourism products. To achieve the set goals and orientations, Viet Travel Joint Stock Company - Vietnam Tourism needs to synchronously implement solutions on: diversifying European tourism products; investing in training, developing quality human resources; innovating, upgrading science and technology and infrastructure; Investing, expanding and effectively using the Company's capital in developing and diversifying European tourism products. Exploiting the available potentials and advantages as well as synchronously implementing the above solutions, Viet Travel Joint Stock Company - Vietnam Tourism will build unique and creative European tourism products that bring high economic efficiency not only to the Company but also contribute to the development of the local economy, as well as the development of the tourism industry of the whole country.

CONCLUDE

With the characteristics of a comprehensive economic sector, tourism plays an increasingly important role and makes a great contribution to the economic - political - cultural - social development of the country. In particular, in recent years, this "smokeless industry" has made strong changes; in addition to improving service quality and the business environment, the tourism industry is making efforts to diversify tourism products. This is one of the goals and also the strategic orientation for sustainable tourism development in the coming time; in order to improve competitiveness, tourism businesses must also identify the diversification of tourism products as an inevitable and important business strategy for their development.

As one of the prestigious travel agencies in Vietnam, Viet Travel Joint Stock Company - Vietnam Tourism is increasingly expanding its tourism business activities not only domestically but also in many countries around the world. With its efforts and effective tourism business strategies, the brand of Viet Travel - Vietnam Tourism is increasingly trusted and highly appreciated by customers nationwide; especially the European tourism products of the Company have also created strong impressions on Vietnamese tourists. In the general development trend of the country and the world, while adapting to the context of international integration, Viet Travel Joint Stock Company - Vietnam Tourism has built strategies to diversify European tourism products, thereby helping to enhance the Company's competitiveness in an increasingly competitive environment. The activities of diversifying European tourism products of Viet Travel Joint Stock Company - Vietnam Tourism have been focused, invested and achieved many significant results in recent years. The Company has built and designed many different European tourism products with the combination of many destinations, many types of tourism as well as diverse activities and tour programs. To improve the effectiveness of the activities of diversifying European tourism products, the Company has also continuously increased investment and development in terms of human resources, material resources,

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