Expense
2,066 | 39,930 | 4,552 | 43,350 | 7,456 | 51,680 | 9,820 | 73,160 | |
Profit profit | 244 | 15,360 | 576 | 22,990 | 980 | 29,570 | 1,655 | 45,720 |
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(Source: Finance and Accounting Department)
From the above table, we can see that revenue, expenses and profits from MICE tourism business and Goldentour travel company have increased steadily over the years.
Regarding revenue; The average growth rate of the whole company in the period 2009-2012 was 29.60%, while the average growth rate of MICE tourism business was 74.17%. This proves that MICE customers are the type of customers with much higher spending ability than regular customers.
Regarding profit; The average growth rate of the entire company's profit from 2009-2012 was 44.30%, while the average growth rate of profit from MICE guests during this period was only 35.46%. The explanation for the high average revenue growth rate while the average profit growth rate was low was because the average cost growth rate during this period of MICE guests was 28.1%, higher than the average cost growth rate of the entire company, 23.11%. The reasons are: The company had to rent accommodation services, inefficiently using tourism technical facilities; the efficiency of using costs to serve MICE guests was not high. Profit ratio from MICE guests: From the above table, we can see that the profit ratio from MICE guests has increased steadily over the years. In 2009, profit from MICE guests only accounted for 1.6% of the company's total profit, by 2010 it accounted for 2.5% and in 2011 and 2012 this ratio increased to 3.1% and 3.6% respectively. This shows that although the profit ratio from MICE guests in the company's total profit is still very low, the company's MICE tourism business is also having encouraging developments.
Chart: 2.7 Revenue from MICE tourists
Chart: 2.8 Revenue from MICE tourists compared to total revenue of Goldentour Company
2.2.3.5. Marketing factors of Goldentour travel company
Over the years, Goldentour travel company has not had a clear strategy for MICE tourism. However, we can also see the company's strategic intention through analyzing the marketing tools that the company uses for this type of tourism.
a. About the product
For MICE guests, tourism products have the following structure:
- For Incentive customers
Daily Services
Vacation service
Food service
Tour and entertainment program
Shopping Services
Travel Services
- For Meeting, Convention, Event customers
Daily Services
Vacation service
Food service
Reception, preparation, implementation of organization of Conferences, seminars, Fairs and exhibitions
Shopping Services
Travel Services
Tour Services,
entertainment
+ About organizing conferences, seminars and fairs
Organizing conferences and seminars has become an attractive business with hundreds of billions of VND in revenue and promises to grow strongly in the future. Organizing conferences and seminars has truly become a profession recognized by society and requires a very high level of professionalism. To successfully organize a conference - seminar, many specialized skills are needed such as: Determining content, promoting the program, inviting speakers, pricing, organization work... Goldentour Travel Company has also organized a number of conferences and seminars for MICE tourists, however, it only stops at renting conference and seminar rooms according to customers' requests for conference and seminar facilities such as tables and chairs arranged according to requests, backdrops, fresh flowers, sound and lighting equipment, reception desks for delegates, podiums, laser pens,... This is also the reason why the company's revenue from MICE guests is not high, the average period of 2009-2012 was about 8.5 million VND/MICE guest.
- About accommodation, food and travel services
Goldentour Travel Company cooperates with hotel systems from 3 to 5 stars to rent for guests. Regarding food and travel services. Depending on the needs of tourists regarding the number of seats, the company can have dining rooms in hotels with a relatively large capacity of 400 seats or less, airy, serving a full range of European - Asian dishes and dishes with the identity of Vietnamese people according to the requests of tourists. Regarding transportation services, the company cooperates with a number of reputable transportation companies nationwide. For example, in Hanoi, the company cooperates with Thien Thao Nguyen Travel Transportation Company with more than 80 cars from 4 to 47 seats, Viet Tuan Transportation Company with more than 50 cars from 4 to 47 seats, new and modern models that can serve international and domestic delegations nationwide.
b. Pricing policy
This is the main factor that generates revenue for the company. Goldentour Travel Company
has implemented the following pricing policies for a tour program:
Table 2.15. Package price applicable to Vietnamese MICE guests
(Unit: thousand dong)
Number of guests
40 | 50 | 60 | 70 | 80 | 90 |
Price for 1 guest
1,173 | 1,024 | 925 | 855 | 801 | 760 | |
Number of guests | 100 | 110 | 120 | 130 | 140 | 150 |
Price for 1 guest | 727 | 700 | 678 | 658 | 642 | 628 |
Number of guests | 160 | 170 | 180 | 190 | 200 | 220 |
Price for 1 guest | 615 | 604 | 595 | 586 | 579 | 564 |
The company has applied a discriminatory pricing policy to other MICE groups.
depending on the number of people in the group as shown in table 2.15.
In summary, the company is currently applying a differentiated pricing policy. That is, a differentiated pricing policy based on the number of guests. This policy has been implemented very well by the company in the past. There are some other pricing policies that the company has not yet developed and applied, such as seasonal pricing policy. For regular tourists, tourism demand is mainly seasonal, but for MICE tourists, tourism demand can occur all year round. Applying a seasonal pricing policy will increase the ability to attract guests and improve the efficiency of using the company's technical facilities. Discount prices for intermediaries. This is also a pricing policy that helps increase the capacity and scale of MICE groups. When intermediaries introduce MICE groups with larger numbers, they receive more discounts. The pricing policy applied to international MICE guests and domestic MICE guests is not yet complete. Today, the competitive environment in tourism is very vibrant and fierce, especially in terms of price. Therefore, in the coming time, Goldentour travel company needs to have new policies and improve existing policies to improve the company's ability to attract MICE guests.
c. Distribution policy
Goldentour Travel Company uses a distribution channel system including both direct and indirect distribution channels to attract MICE guests.
- Direct distribution channel: Is the distribution channel where MICE customers come to buy the company's tourism program, this is done through the department.
market specializing in MICE implementation. Over the years, the company's direct distribution channel has been operating quite effectively, especially for the domestic MICE market.
- Indirect distribution channel: This is a distribution channel implemented through travel intermediaries sending guests, which are travel agencies sending guests, hotels organizing conferences, seminars, and trade unions. In the past, from 2009 to 2011, the indirect distribution channel system was implemented mainly through the company's branches in the provinces and the company's partners abroad.
Thus, with the implementation of two types of distribution channels to attract MICE guests, the company's MICE attraction activities have been effective in recent years. Regarding the direct distribution channel, we see that the direct distribution channel has helped the company expand its market, reflected in the number of MICE guests coming to the company through this channel increasing steadily over the years. In the coming time, the company needs to have policies to perfect and develop the direct distribution channel to improve the effectiveness of MICE attraction activities. Distributing products through indirect distribution channels has also helped the company expand many of its markets. Therefore, the company needs to establish and strengthen sustainable relationships with business partners.
2.2.3.6. Promotion and incentive policies
- Domestic market: In recent years, Goldentour Travel Company has done quite well in propaganda and advertising. The company uses various forms of customer contact in its promotional activities. Every year, the company sends employees to meet customers directly to introduce products, services, new travel programs, brochures, and brochures are also used by the company as advertising tools. The company regularly sends brochures, leaflets, brochures, travel program introduction boards, general or specialized advertising leaflets to economic, political, social organizations, companies in Hanoi, the Northern region as well as Ho Chi Minh City and the Central provinces, sending new information about travel programs to branches of domestic travel partners. In addition,
Internet advertising is also used by the company in its advertising activities. In 2010, tourism programs serving MICE guests were posted on the company's website, a series of tourism programs were offered by the company with different prices and times. However, the company does not have a separate website for MICE guests, but is still designed with the company's website. The section for MICE guests is still very poor in information, only information about a few tourism programs, no pictures and not attractive to tourists.
- International market: The company's products are promoted to the international market mainly through the Internet, the company also sends brochures to travel partners, representative offices and branches of the company abroad. In addition, Goldentour travel company also advertises in domestic and international travel newspapers and magazines, participates in tourism fairs, conferences and seminars on tourism at home and abroad. Thus, the purpose of the promotion and propaganda policy is to build a good image of the company for tourists, creating trust for tourists. Applying effective promotion and propaganda policies will help the company improve its ability to attract MICE guests. Currently, the company's promotion policy has not been really effective in attracting MICE guests, the forms of advertising are rich and diverse but not yet attractive. In an increasingly competitive environment, investing in and strengthening promotional activities is a very necessary task. Therefore, the company needs to have solutions to improve the effectiveness of customer attraction activities through designing and implementing promotional activities in the best way.
2.2.3.7. Support policies
- Human policy: People are always the decisive factor in the success or failure of any company. In general, the company's staff is quite sociable, enthusiastic and efficient. The ability to connect and transfer work between employees is very good, relatively satisfying the needs of tourists in general and MICE guests in particular. Although different from other forms of tourism, the role of the tour guide team does not determine the quality of tourism.
MICE but the company's weakness is that it does not have a team of tour guides with all the necessary skills. Most tour guides have foreign language skills and knowledge but only to a certain extent. This has caused the company to spend a significant amount of money every year on training activities to improve the professional skills and foreign languages of this team.
- Physical evidence policy: Physical evidence is the actual signs of product quality that customers can see. Thank you letters, pictures of MICE groups, the decoration of Goldentour travel company's reception area, uniforms,...
2.2.3.8. Evaluation of marketing policy in attracting MICE guests at Goldentour travel company
a. What has been done regarding marketing policy in attracting MICE guests
- MICE tourists are customers who have the ability to pay very high for the trip and are very demanding. To meet the needs of MICE tourists, there needs to be high quality and consistent tourism products. In the past time, Goldentour tourism company has made many efforts in building and innovating tourism programs, developing new tourism products to diversify tourism products.
- Regarding pricing policy, the company has applied a differentiated pricing policy for the number of guests per group. This pricing policy has been evaluated as effective in recent times, increasing the number of guests coming to the company over the years.
- On the other hand, the distribution policy applied by the company in the past has proven to be quite effective in attracting MICE customers, especially the direct distribution channel, the number of MICE tourists coming to the company is increasing.
- In addition, the company's promotion policy is implemented regularly and widely to all of the company's customer markets, contributing to enhancing the company's image to MICE tourists.
b. Limitations of marketing policies in attracting MICE guests