Below is the price list of the company and An Bien Travel Company Limited. In general, the prices of the two companies are similar, the difference is not much. For programs with the same destinations and the same time, the price of Trung Thanh company is still lower than the price of An Bien company.
Program name
Package price 01 guest/ VND Applicable for groups of 18-25 guests | ||
Joint Stock Company Loyal | Travel Company Limited An Bien calendar | |
Summer Program | ||
HP-Ha Long-Tuan Chau | 375,000 | 380,000 |
HP-Cat Ba-Lan Ha Bay-HP | 798,000 | 875,000 |
Hai Phong-Cua Lo-Uncle Ho's Hometown-HP | 685,000 | 790.00 |
Ecotourism | ||
HP-K9-Green Compartment-Suoi Tien- HP | 680,000 | 750,000 |
Central Heritage Journey | ||
HP-Quang Binh-Phong Nha Quang Tri Ancient Citadel-Hue-HP | 1,435,000 | 1,720,000 |
Flight program (not including tickets) | ||
HP-HCMC-Phu Quoc-HP | 2,319,000 | 2,450,000 |
HP-Hanoi-Nha Trang-Buon Ma Belongs to HP | 2,280,000 | 2,290,000 |
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How to calculate the selling price of tourism products: Selling price before tax:
G = Z + Cb + Ck + P + T
In there:
G : Selling price
Z : Cost
Cb: Selling costs (commissions for signers, printing leaflets, advertising...)
Ck: Other expenses (office rent, employee salaries...) P: Profit
T : Taxes (excluding VAT)
Price is calculated on the basis of costs calculated on the cost price and selling price. G = Z(1+∑α)
(1-∑β) In which:
∑α: is the sum of coefficients of items calculated according to cost price
∑β: is the sum of coefficients of items calculated based on selling price.
2.3.3 . Distribution policy
Product distribution is the process of bringing products to consumers. The purpose of distribution policy is to consume many products in a short time, creating convenience for customers. Good quality service, low cost achieves high business efficiency. Thereby, it also collects information about the market to grasp customer needs. There are many different distribution methods and distribution channels.
Based on the company's scale and capabilities in the Hai Phong market, direct distribution channels have been applied.
Tourists
Tourism products
Individual market
Diagram 2.2: Product distribution channel structure of Trung Thanh company
Trung Thanh Transport Tourism Service Joint Stock Company uses human resources within the company to offer tourism programs to customers through the company's marketing department and tour guides.
Use the office at 106 Van Cao - Ngo Quyen - Hai Phong for exchange
Consulting and selling travel programs.
The company has used the communication system to sell products online through the company's website. However, this sales method has not been effective. But anyway, it is a way to advertise for the company, affirming the quality and price of the company in the Hai Phong market.
This policy has helped the company grasp market needs, creating favorable conditions to enhance reputation, promptly handle market changes and save time and costs for customers.
2.3.4. Promotion policy
In the travel business, promotion mix is the process of combining communication in the tourism program business, aiming to convey information about tourism programs to consumers in the target market. Help them to be aware of the business's products, at the same time attract them to consume the products and be loyal to the business's products.
Advertising
Advertising is the art of introducing goods and services to attract customers and stimulate their travel needs. Due to the nature of tourism products, it is difficult to advertise on mass media such as radio, television, etc. The company has used a popular and familiar form of advertising that travel businesses often use. That is a brochure.
During the past year the company has distributed nearly 3,000 brochures and 5,000 leaflets.
Realizing the important role of brochure advertising in marketing the company's products and image to customers. The company has focused on investing in designing eye-catching and sophisticated brochures that still fully convey the message that the company wants to introduce to customers. The top cover page is the company name, the bottom corner is the company address. In the middle are attractive images of tourist destinations, in the middle is the image of the restaurant. Inside is an open letter introducing the company in general, presenting spring, summer, cross-country and international travel programs. The company's customer service motto is:
“The best service quality and the most reasonable price”.
In addition to advertising with brochures, the company also uses its own website for advertising. Through the website trungthanhtravel.com.vn, customers can directly access to find information about the company, the tours that the company sells and can directly book tours via the internet.
Direct sales
Sales is a part of communication work. Trung Thanh Transport Tourism Service Joint Stock Company has used direct sales. Market department staff will send tour programs, program prices and registration procedures via post... Or regular customers, customers who want to buy tours will call the company to discuss products, prices... They can know more information about the product or change the schedule, discuss prices... Sales is a very important operation, it is the deciding factor for whether customers will buy the product or not. In addition, sales also aim to establish relationships with important customers, creating long-term relationships.
Most customers, when receiving the brochures about the company's travel programs and intending to buy the product, call the company to discuss and get more information about the product. To answer all customer questions, the sales department must have full information about the product such as program features, price, time, etc., and must also be flexible to recognize the customer's intentions to introduce more about the product and convince the customer with the ultimate goal of selling the product at the highest price.
Promotion
Promotion is a form of stimulating customers to buy. Depending on each customer market, the company applies specific promotional policies as follows:
For large groups of 35 guests or more and a program of 2.5 days or more, the company will organize an exchange during the trip, giving flowers and souvenir photos to the whole group.
For groups with fewer guests, the company will give souvenir gifts.
thought
For veterans who buy tours during the month of returning to their roots, tours to visit historical sites, revisit old battlefields, etc., the company will discount the tour and have gifts for veterans.
For customers who are policy beneficiaries, when purchasing a tour, there will be special gifts for them.
For regular customers, long-term customers of the company such as Cat Hai District Internal Affairs Department, State Treasury, Nam Viet Ward officials, Military Bank... there is a 10% discount.
Especially for customers who buy tours from the company 3 times or more, when buying tours worth 50 million VND or more, they will receive a 20% discount on the tour price.
All tours are given a baseball cap with the company name printed on it, and there are drinks served on the bus.
Human policy
Most of the company's employees have university degrees, are between 25 and 35 years old, quite young, and are mostly female. In addition to the company's tour guides, the company also has a large, young, and enthusiastic team of collaborators. The company pays attention to training to improve professional skills. There are regular meetings to exchange information and experience, and to raise difficulties for employees to contribute ideas and find the best solutions to solve them, among employees in the company who share the same tasks such as marketing, guidance, and operations staff. Thanks to that, experienced employees can exchange and help less experienced employees. Employees are concerned about salaries and bonuses, encouraging employees who work well and effectively. Ensuring stable salaries.
3 Reviews and comments on marketing activities to attract domestic tourists of Trung Thanh Transport Tourism Service Joint Stock Company
3.1 Successes
Product policy
- The company has segmented the market and selected the target market segment. Based on that, it can see the different needs for products in each market segment.
target market. Grasp the characteristics of each market segment. From there, it is possible to develop policies on products, prices, promotions... to attract more customers.
- The company has built a product system including both traditional and new. Change the program according to customer requirements. Product quality is the top priority, so it has met the needs of the target customer market, created customer trust, and affirmed the company's position in the competitive market.
Pricing policy
- The company has applied a flexible pricing policy, depending on each market segment and different times, using different prices that are very suitable for the service and customer psychology, helping to increase the competitiveness of the product in the market.
- Market needs are very different, applying lower prices while still focusing on service quality will also attract more customers for the company.
Distribution policy
- Using direct distribution channels, the company can easily capture full and accurate customer information. Delivering products directly to customers, saving money and making it convenient for customers to buy the company's products.
- Saving on product consumption costs should create conditions to reduce prices and increase competitiveness in the market.
Promotion policy
- Make full use of appropriate forms to advertise your products such as through leaflets, brochures, and the internet.
- Applying a fairly effective promotional policy both stimulates customers without affecting the company's profits.
- Sales staff are experienced and enthusiastic.
Human policy
- Focus on training to improve the quality of staff.
Appropriate incentive policies for each employee, depending on their position, role and contribution to the company.
- Appropriate salary policy to retain employees, encourage them to work better.
3. 2 Limitations
Product policy
- With a competitive market like the Hai Phong tourism market, market segmentation is very important. Choosing additional criteria to segment the market into smaller segments will help understand each market more clearly and deeply.
- Product positioning is not really clear, not creating a truly unique image different from competitors. Communication messages are not really clear and concise.
- Product policy does not focus on new products but mostly on familiar traditional programs.
- Program quality is often not guaranteed, program quality is not high. Not really paying attention to additional products that help increase product value such as convenient payment methods, program registration...
Pricing policy
- The company is maintaining lower prices than before (lower than the company's own prices, although inflation in 2008 was higher than in 2009), but the company's target market is the group of employees in the state administrative sector, who are picky and have a good income. They do not care much about price but care about product quality, so applying low prices often leads to doubts about the quality of the company's products.
- This price is considered lower for the company's regular customer market. This is not a low-price strategy, so compared to some travel businesses in the city, this price is still high, high compared to some low-income market segments.
Distribution policy
- The company only uses one direct distribution channel, so it only reaches a narrow market. When risks occur, the business must take full responsibility.
Promotion policy
- Not investing much in advertising, but sometimes using it ineffectively causes waste.
- Propaganda work has not received much attention, the company's propaganda and public relations activities are very little.
Human policy
With the current difficulties of the company, the company has changed some staff positions, cut some staff. There are also many employees who have not been fully trained in professional qualifications. Especially in the marketing department and tour guides, they are often still allowed to work without enough experience and qualifications, leading to poor customer service, reducing the quality of the tour program.
3.3 Causes and lessons learned
Due to limited knowledge, through my own research and study, I would like to present some causes and lessons learned below.
Cause
- Trung Thanh Transport Tourism Service Joint Stock Company has been operating in Hai Phong city for 6 years, which is quite young compared to many businesses in Hai Phong, so there are still many limitations in terms of capital and experience of the company's management board as well as the tour guide team.
- The human factor in tourism business is the top requirement that requires managers to pay attention and invest in attracting qualified, experienced, and skilled workers.
- Due to the general difficulties of the company in the current period. And the changing trends of the market.
- Not really sensitive to market fluctuations. The market structure is quite complex with many different customer groups and diverse needs.