The Vietnamese overseas market is very potential and needs to be exploited more strongly to bring in higher revenue.
In addition to promoting tourism at domestic fairs and exhibitions, the company needs to participate in fairs abroad, especially in Singapore and Malaysia. From there, exploit these markets through local partners.
Currently, online tour sales need more attention and have many languages such as English, Cambodian, Chinese, Japanese...
Tour payment via account also contributes significantly to product sales, this is an advanced way in the future.
2.1..3.2 Travel programs for Vietnamese people and foreigners residing in Vietnam traveling abroad
This is a very potential market and brings in revenue second only to the domestic market. In the context of international integration and the trend of ASEAN association, there will be many countries exempting visas for Vietnamese citizens, people's income is increasing day by day, many international corporations operating in Vietnam send their employees to Teambuilding abroad, so many people will choose to travel abroad, mainly to neighboring countries such as Cambodia , Thailand, Singapore, Malaysia, China...
European markets are still limited due to high costs, program duration, and difficulties in obtaining visas, so they are not yet attractive, so tourists still go to Asian countries more because of low costs and similar cultures to Vietnam.
Currently, LuaViet has about 20 travel programs to countries around the world with relatively competitive prices (Cambodia tour price 4 days 3 nights only 199 USD, Singapore 4 days 3 nights only 528 USD..) Departing periodically every week and every month, meeting a moderate number of customers, the tour schedule is quite impressive and different from other travel agencies, good service quality, attentive service, enthusiastic staff, good professional expertise and foreign languages are the advantages of the company compared to high-class suppliers.
Currently, the company is strongly exploiting the Cambodian market because this is a market.
adjacent to Vietnam, has many famous heritages (Angkow at, Angkothom, pagoda
gold...) and especially low cost, so it is chosen by many customers, Cambodia has exempted entry and exit visas for Vietnamese citizens and there are many overseas Vietnamese living and doing business, which are also factors promoting the number of tourists here. Moreover, the company also has a team of tour guides who speak Cambodian fluently and have good relationships with the hotel and restaurant system, which are also advantages.
In addition, promising markets such as Singapore, Malaysia, Brunei, China and South Korea also need to be developed. Currently, the Thai market is facing difficulties and serious decline due to political instability. However, when normalcy returns, this is a very potential market that needs to be quickly restored to increase revenue.
For the market of foreigners residing in Vietnam traveling abroad, the company has not been able to exploit much due to ineffective promotion and marketing activities, and difficulties in organization, so it has not brought in the desired revenue.
Currently, the MICE market (2) is growing strongly. This is a market that brings high revenue, is easy to organize and has low organization costs, so it needs special attention to develop more effectively, worthy of an international travel agency.
2.1.3.3 Tourism program for Vietnamese people and foreigners residing in Vietnam to travel to Vietnam
This is the main market that brings the company the most revenue every year. Many favorable factors such as the large tourist market (every year there are about 20 million domestic tourists) and stable, being a traditional market, Vietnam has many famous landscapes throughout the country so the program is diverse, convenient transportation, simple legal, has many familiar partners so most international travel agencies are interested in this market.
Currently, the company has over 30 regular programs for domestic market visitors.
to all famous tourist destinations in all 3 regions of the country, in addition, the company also accepts to design private travel programs for customers to set prices, time, tour programs, and organize available programs provided by customers. Lua Viet has created a distinct identity to retain consumers.
2 Conference tourism
Use tourism products that are imbued with the identity and traditional values of the Vietnamese people.
Key markets are mainly in the Southern region such as Phan Thiet, Nha Trang, Da Lat . Central region such as Hoi An, Da Nang, Hue, Phong Nha : Northern markets such as: Hanoi - Ha Long - Sapa.
Sea and island tourism such as Con Dao - Phu Quoc - Cu Lao Cau...
Due to increasingly fierce competition, it requires professionalism in organization, improving service quality and reviewing and cutting unnecessary costs to offer products with competitive prices.
2.1.4 The company's customer market
The company has chosen a customer market that is suitable to its existing strengths.
ù Chart 1.1: Outbound market structure of Lua Viet Outdoor Company Limited
2009,
Outbound market table
Cambodia (34%) Singapore (18%) T ha ilan (14%) Mal aixia(12%) China (10%) Other markets (12%) |
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(Source: International travel business department of Lua Viet Outdoor Company 2010)
Looking at the chart, we can see that the company's main markets are in Southeast Asian and Asian countries because these are all markets close to our country, with moderate travel costs and an average of about 4-7 days, so they are suitable for many types of customers, convenient in terms of travel and easy visa conditions because most of these countries have exempted visas for Vietnamese citizens. Particularly, the market
Cambodia has the largest number of visitors (34%) due to low travel costs (199usd/ 4N 3D tour) departing by car, so there are many visitors joining the country.
This country is culturally close to Vietnam and has the world-famous Angkor Wat relic that is very attractive to Vietnamese visitors.
+ By geographic location
Customers are mainly in Ho Chi Minh City and the provinces of the Southeast. This is the market where the company is headquartered, the largest tourism market in the country, with high income, people like to travel, so at present and in the future it is still a very potential market. The fact that more and more travel agencies are operating requires a better understanding of customers to ensure the smooth operation of the company.
+ By customer
Diverse target audience: Including many different professions such as Company employees, Students, agencies, units and individual customers, group customers. And all ages but focusing on young to middle-aged customers.
+ By income level
Diverse products, many different prices suitable for many customers' budgets.
2.2 Analysis of travel business efficiency at Lua Viet Outdoor Company Limited in the period 2006->209
In recent years, especially in 2008-2009, due to the general gloomy situation of the world economy, the company's business has encountered many difficulties due to the decline in the number of customers, the limited psychology of traveling, and cutting spending. However, facing difficulties and challenges, the entire Board of Directors and employees of the company have joined forces to overcome difficulties, proactively dealing with all situations, so the business has still progressed in a positive direction, maintaining stability and necessary development.
Steady growth in both number of customers and revenue achieved.
After the first 5 months of 2010, Lua Viet has served about 23,500 guests with total revenue of 11,754,400,000 VND D. (source: sales department)
2.2.1 Overview of the company's business situation
Table 2.3 Statistics of some main indicators of the company Da N goai Lua Viet
Year
Quantity visitors | Increase growth (%) | Revenue (thousand VND) | Profit (thousand dong) | Increase growth (%) | |
2006 | 39,682 | - | 19,740,700 | 1,927,035 | - |
2007 | 41,870 | 5.51 | 21,845,700 | 2,092,285 | 8.5 |
2008 | 44,806 | 7.0 | 24,061,802 | 2,303,095 | 10.07 |
2009 | 46,217 | 3.14 | 26,192,800 | 2,459,640 | 6.79 |
2010 (forecast) | 50,376 | 8.99 | 29,610,560 | 2,749,900 | 11.8 |
2015(forecast) | 77,509 | - | 45,433,390 | 4,567,690 | - |
Source (information department of Da N goai Lua Viet 2010 company)
2.2.3 Evaluation of business performance of Viet Fire Outdoor Company Limited in the period 2006->2009
Achievements
During the years 2006-2009, despite experiencing many fluctuations and general difficulties of the entire tourism industry (influenza A H5N1, H1N1, global economic crisis 2008-2009, unstable regional situation (coup in Thailand...) had a significant impact and influence on the number of visitors to Vietnam and Vietnamese visitors going abroad.
Faced with these difficulties, all company employees from the Board of Directors
to all subordinates aware of their mission, step by step steering the Lua Viet ship to overcome difficulties, successfully completing the set plan.
Specifically, on average, each year, the number of customers increased by nearly 2,200, with an average revenue increase of VND 2,150,700,000/year and profit growth of nearly 10%/year. These are truly meaningful numbers, demonstrating the strong growth of the company.
Lua Viet brand is increasingly known by customers everywhere, and they come to use its services.
During the process of formation and development, we have achieved many awards such as
- Certificate of merit from the Central Secretary of the Communist Youth Union
- Certificate of Merit from the President of the Vietnam Women's Union
- Certificate of Merit from the 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 Ho Chi Minh City Department of Tourism
- Certificate of merit from the Department of Labor, Invalids and Social Affairs
- Certificate of Merit from the People's Committee of Ho Chi Minh City
- For 3 consecutive years 2003 - 2004 - 2005 and recently 2008, 2009, Saigon Marketing Newspaper and consumers voted "Most Satisfied Travel Business".
In 2009 alone, it ranked 5th in the top 8 leading domestic travel agencies in Vietnam voted by the General Department of Tourism.
Limitations and causes
However, in the development process, in many aspects, there are still many problems that need to be overcome such as the number of customers is not really stable, growth is not commensurate with the potential and position of the enterprise, price factors are still high, human resources work still has many shortcomings. The above reasons are due to limitations in business scale, low charter capital, uneven human resources, organizational work still shows shortcomings. Therefore, if you want to improve the efficiency of travel business, you need to implement more solutions to contribute to enhancing the strengths and increasing the service capacity of the company.
Customer Service
48000
46000
44000
42000
40000
38000
36000
male
people
Chart 2.1: Number of customers served by the company in the period 2006-2009
number of customers
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
Source: Company Information Lua Viet Picnic, 2010)
The number of customers served by the company has continuously increased over the years, the period 2008-2009 has slowed down due to the impact of the global economic recession which limited the number of customers coming and going. However, the growth of about 2000 customers/name is not commensurate with the potential and available advantages of Lua Viet.
Revenue and Profit Chart
30000
25000
20000
15000
10000
Revenue
Profit
5000
0
2006
2007
2008
2009
Male
Million Dong
Chart 2.2; Company's Revenue and Profit from 2006->2009.
Source: Lua Viet Picnic Company Information Room, 2010)
2.2.3 Travel business development solutions currently being applied at the company
Product policy
The company's products mainly serve the tourism sector, including travel programs to and from domestic and international tourist destinations, in which the domestic market accounts for the majority and mainly serves Vietnamese customers, the international tourist market is still less interested in development.
Other industries are only operating at a low level or even not operating at all, so the product and service structure is not diverse and mainly operates in the tourism sector.
Pricing policy
Prices apply differently at different times, specifically prices on holidays and Tet increase compared to normal days. Prices during the week remain unchanged.
Price adjustment period is about 6 months to keep close to actual price fluctuations.
Some tours use airplanes as a means of transportation, the price will depend on the vehicle.
Depends on the actual airfare at each time. For Cambodia tours, the price remains unchanged all year round.
Table 3.0: Illustrative tour price list (Phu Quoc, 3 days 2 nights, Airplane unit: VND D)
Number of guests
2 guests | 3-4 guests | 5-7 guests | 8-10 guests | |
2 star hotel | 4,079,000 | 3,899,000 | 3,699,000 | 3,559,000 |
Thai Son 3 stars | 4,499,000 | 4,339,000 | 4,119,000 | 3,979,000 |
Phu Quoc Resort | 5,490,000 | 5,359,000 | 5,099,000 | 4,979,000 |
Go fishing | 400,000 | 270,000 | 180,000 | 150,000 |
Not included:
Personal expenses outside the program
Children under 2 years old: 10% of airfare. Family takes care of the tour expenses. Two adults can only bring one child for free, from the second child, 50% of the fee will be charged.
From 2-5 years old: 75% of airfare, family takes care of tour costs,
Children from 6-10 years old: 75% of airfare + 50% of service price, sharing bed with parents, other benefits as adults.
From 11 years old and up, one ticket is charged,