Analysis Of The Vietnamese Tourism Market Tourism Essay

My friend and I have passion in touristry. My friend has several old ages of experience working for an international travel company in Ho Chi Minh City as a travel adviser cum circuit operator. She have strong relationship with five star hotels and eating houses in Vietnam. I have opportunity to go to many states and survey international touristry industry. I besides have a parttime occupation as a circuit usher for some travel companies. I understand what tourers expect from a knowledgeabe and friendly circuit usher, quality service every bit good. Thus, uniting her experience in Vietnamese touristry market and my apprehension about international tourers ‘ demands, we decide to open a travel company, named “ Luxury Tour Co. ” in Ho Chi Minh City. Our mark market is Spain. Within the following five twelvemonth, we build “ Luxury Tour ” as the first pick for the Spaniard when they think of going to Vietnam. This name guarantees for “ best service, best pick ” as our motto of “ Think nil, allow us ” . This selling program is designed to foreground important stairss and other related issues to run concern good and run into the end.

Market Overview

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Tourism is considered as the cardinal industry in the close hereafter. Tourism develop three sectors, they are, domestic market, inward market and outbound market ( Helmut Wachwiak, 2006:48 ) . Domestic touristry purposes to local clients, while inward touristry aims to pull international tourers to the state and outward touristry aims to organize circuit for local tourers who want to go abroad. Among of which, inward touristry is emphasized most. It non merely creates more employment chances for the local people but besides plays an of import function to pull foreign investing in Vietnam as MICE tours becomes popular.

Tourism is based on a batch of factors. Here is the list of some alterations act uponing touristry in general and Luxury Tour concern activities ( Lloyd E. Hudman, Richard H.Jackson, 2003:24 )

Infrastructure in Vietnam. Understanding the contribute of the non-smoke industry, Vietnamese Government has invested in some undertakings, such as edifice tube, route etc. , and encouraged people take portion in presenting beautiful image of Vietnam to the universe ( Vietnam Tourism, 2010 )

Social behaviour. For illustration, sing the circuit monetary value, it depends on the suppliers’quotation. They are five leading hotels, eating houses, transit etc. In peak seasons when several tourers come to Vietnam, deficiency of commodation or waiters/waitresses is predictable. As the consequence, the tour monetary value is higher, but tourers are served less.

Increased gas/petrol monetary value. That is to state, it leads to the addition of monetary value in transit, flight ticket etc.

The rapid development of Internet and e-commerce. Harmonizing to the CIA Factbook, in 2009, 50 % of Spaniard usage cyberspace, and this figure is increasing repidly. It push e-commerce developped more

Stable VND-Euro currency rate makes tour monetary value stable and more competitory than other markets ( Vietnam Central Bank, 2010 )

Stable political relations makes international tourers feel safety while remaining in Vietnam

New touristry tendency. Harmonizing to ITB World Travel Trends Report 2010/2011, Southeast Asia is scintillating as an ideal finish to EU market. They prefer basking “ Sun and beach ” and detecting Eastern civilization

Increased income. That is to state, more tourers want to pass their vacations at the highest criterion

Customer Information

Harmonizing to World Tourism Ranking, Spain ranks 11th in the universe in footings of spend on international travel, but at that place has been important growing in recent old ages in outbound travel. Growth is expected to go on as more and more Spaniards have holiday wonts.Besides, Spanish long-haul travellers take advantage of really favourable Euro to VND exchange rate. The weakening of the VND could pull more involvement in this finish.To understand clearly, here is the Spanish Outbound Travel Trend.

aˆ? Finish: Some competitory finishs to Vietnam are: Fiji, Gallic Polynesia, Australia, China, Japan, Mexico, and the USA. However, Europe remains the chief finish for Spanish travellers, merely 27 % of the outbound trips are far beyond the European boundary lines ( World Tourism Organization, 2007 )

aˆ? Travel season: Most of the Spanish decide to go abroad in August, September – the clip of summer holidaies. However, short interruptions are spread more widely through the twelvemonth, in peculiar around public vacation times. The mean length of stay for vacations abroad is around 9 darks.

aˆ? Purpose: Leisure ( 54.3 % ) remains the chief ground for going outside Spain, followed by concern events or work related ( 20 % ) . The cardinal driver for taking abroad vacations is sing other states, larning about their civilization and visual perception and making tonss.

Market Information

Harmonizing to Vietnam touristry, in 2010, there were 5,049,855 international tourers going to Vietnam, which was 34.8 % higher than 2009. Most of them were from China, South Korea, Japan and other Asiatic states. Obviously, compared to other markets, Western tourers have non known much about Vietnam. With the moving ridge of Asiatic civilization, Asia becomes an ideal pick, particularly Southeast Asia. Following the new tendency, Vietnamese authorities have encoraged travel companies to analyze and do programs to spread out busiess into Western markets.

Harmonizing to World Torism Organization, in Europe, with 19.7 billion USD spent in international touristry outgo ( 2007 ) , Spain ranked 11th in the universe. This figure seems to increase yearly. However, harmonizing to Vietnam National Administration of Tourism, the figure of Spanish tourers to Vietnam for leisure intent is still low and late, the authorities with advancing activities is taking attempts at opening Spain market as our chief mark market in the close hereafter

In Vietnam, there are two major travel companies which target Spanish markets, they are, ASCO Lotus Travel and Exotissimo Travel. ASCO have old ages of experience for Western tourers to run circuit to Vietnam, Laos, Thailand and Cambodia and ASCO while Exotissimo opened subdivisions in Vietnam, Laos, Cambodia, Indonesia and Myanmar. They aims to high-and-above-income maket while Luxury Tour aims to function mid and high income tourers with the highest criterion. As a Vietnamese travel company, Luxury Tour understand Vietnamese concern behaviour. Thus it is easier to construct strong relationship with local providers.

Industry Information

About 1.6 billion is the expected figure of international reachings forecasted by UNWTO ‘s Tourism 2020 Vision by the twelvemonth 2020. Among of them, 1.2 billion will go to other states and 378 million will take longer trips. It is obvious that travel between different parts ( outbound and inbound ) tends to turn at a faster rate than intraregional travel ( house servants ) . In 2007, interregional travel increased by 8 % as against a growing of 6 % for intraregional traffic.

Harmonizing to Vietnam Tourism ( 2010 ) , from October 10th to December 31st 2010, following “ Vietnam-your finish ” run, international tourers were welcome to Vietnam without visa. With this opened policies, Vietnam was successful in pulling inward tourers, particularly in Western markets. In 2011, it is expected that Vietnamese Government will see its effectivity and efficiency to doing farther determination better.

Product/Service Information

Luxury Tour wants to near mid and high income Spaniards. Most of them are business communities, specializers, and professors etc. who are excessively busy to bask their clip. With the motto of “ Think nil, allow us ” , Luxury Tour wants to be the utile right manus by conveying them into the most comfy universe with households and friends. We offer several circuits bundles with high quality. All client demands are satisfied absolutely. From the minute clients contact Luxury Tour to the terminal of the circuit, clients will be serviced by friendly and professional staff, such as travel advisers, circuit operators, tour usher and others

SWOT Analysis

Strength

High-quality service

Operational efficiency

Experienced and extremely customer-oriented staff

Strong selling and gross revenues forces

Strong relationships with both providers and Spanish travel bureaus

Failing

New trade name name in the market

Limited budget

No representative office in Spain, so Luxury Tour can non reach straight to the mark client

Depend on Spanish travel bureaus

Opportunity

Spain is a new emerging or developing market for Vietnamese touristry industry

Less competition

Rapid development of e-commerce

Support from authorities ( i.e. : opened policies to promote touristry )

Social alterations: more Spanish privation to go to Southeast states

Menace

Fiscal crisis

The increasing of possible rivals

Social jobs: there are many beggers who follow tourers from topographic points to topographic points

Aims

The cardinal aims for Luxury Tour are:

Within 5 old ages, Luxury Tour becomes the Vietnamese taking circuit operator in Spanish market section with 30 % of portion market.

Integrated selling services are established to show a incorporate image/brand individuality of Vietnam as an ideal finish.

The figure of loyal tourers is increased

After the first five twelvemonth, Luxury Tour will spread out concern into other Western markets, such as the Portugal, the Netherland etc.

Scheme

With Luxury Tour, tourers will see the finest service, enjoy the most delightful Vietnamese cusine and remain at the most comfy hotels. Our attempts are to do tourers retrieve uniqueness and cordial reception of Vietnam in general and Luxury Tour in peculiar. It is can be measured by the increased figure of Spanish tourers coming back to Vietnam yearly.

What Luxury Tour attempt to sell is non merely tours themselves but besides benefits. A good circuit operator knows how to command income factors and how to equilibrate incomes and results ( client demand ) to fulfill three parties, that is to state, tourers are pleased with service, providers are happy to function and Luxury Tour gets net incomes and more significantly, client consciousness.

Merchandise

To be more competitory in the market, our tour paths are designed with two advantages: Quality and Customer service.

*** In term of Quality: Tour path is designed based on 5H theoretical account, that is the combination of Hospitality, Honesty, Heritage, History, Heroic

**** In term of Customer Service:

Speed: We have hotline served 24/7 to reply all clients ‘ inquiries and complain

Flexibility: Tour path can be re-designed to suit each client ‘s demand

Dependability: all needed info is provided to clients before they book Tourss, including warning ( if applicable )

Pricing

Our mark client is from mid-income and above. They normally prefer to bask vacations in their ain gustatory sensations and required to be served at the highest degree. Therefore we mix two monetary value schemes, good-value pricing scheme and value-added pricing. Luxury Tour will plan a basic bundle monetary value which combines high criterion, good service at sensible monetary value. From the rudimentss, this circuit is bespoke to repair each client demand. The monetary value is mutable based on the seasons, supple-demand balance and other unanticipated state of affairss. Normally our estimated monetary value is around USD 2,200 / kiss of peace.

Distribution

For the short term, to execute activities to pull tourers from Spain to Vietnam and spread out distribution channel to run into market demands and service clients better, Luxury Tour has partnered with touristry companies in Spain. With this partnership, Luxury Tour has been in the large metropoliss of Spain, such as Barcelona, Madrid, Valencia etc. For the long term, within the following 5 old ages, Luxury Tour opens one representative bureau in Madrid to near clients ‘ demands easy and expeditiously

Promotion

Web site:

Luxury Tour launches and operates Internet site efficaciously as a practical tourer office in which clients can happen a batch of information about Vietnam and utile tips for their circuit. The web site is designed with friendly screen and easy-to-follow instructions. Besides, our on-line travel advisers are willing to assist clients plan suited circuit paths with sensible monetary value and back up them during and after journey.

Search Engines Optimization:

To be recognized among 1000000s of touristry web sites, we will corporate with some internet hunt engine sites such as:

hypertext transfer protocol: //www.ivivu.com/

hypertext transfer protocol: //www.skydoor.net/

hypertext transfer protocol: //www.chudu24.com/

hypertext transfer protocol: //yeudulich.vn/

hypertext transfer protocol: //www.tourism-review.com/

Alternatively of purchasing a topographic point on their web site, Luxury Tour offer them a concern corporation chance, this is, banner exchange. This is a win-win corporation

Ad:

As a new trade name name in luxury touristry industry, we decide to concentrate on conveying our image to the mark clients. Our mark client cleavage is from mid and high income. Choosing a dependable magazine is the first pick. Among of which is “ Travel and Entertainment ” magazine – the publication of Ministry of Culture, Sport and Tourism and the taking magazine in touristry of Vietnam. It is available in Vietnam Airlines, Indochina Airline and Royal Brunei Airline.

Public Relations:

To construct strong relationship with Spanish travel companies every bit good as to turn out them our outstanding service offered, Luxury Tour normally invites spouses and Spanish imperativeness to hold trips to Vietnam for free of charge. It is non merely a normal concern trip but besides a opportunity to present Vietnam beauty and its touristry potencies every bit good. Besides, Luxury Tour besides have budget to patronize for community activities such as seting tree, edifice houses for the hapless etc. to stress that Luxury Tour image is non connected to concern merely, it is the combination between societal duty, environmental protection and concern.

Promotions:

Luxury Tour normally takes portion in some trade exhibitions in Vietnam and foreign states. This signifier of promotional activity enables publicity straight to the consumer for making ‘word-of-mouth ‘ channel. We offer 10 % price reduction for who books tours at exhibitions

Stigmatization:

Luxury Tour wants to construct a friendly image and impress current and possible clients by service quality. Our logo is design with the chief colour of green and the image of a typical tourer. Our motto is “ think nothing.Let us ” .

Operational Plan

Sucessful touristry concern depends on the service quality. Tourism is unlike other industries. We try to sell unseeable merchandises. The cardinal points are how to carry them to test our service and how to do them experience undisappoited about their decision.To meet that end, Luxury Tour must pay attending to puting up a quality control system purely. Not merely look intoing service from providers, employee force must be trainned to function client 24/7. Any jobs before, during and after circuits need to be solved shortly. After each circuit, based on their feedback, Luxury Tour have some alteration to better more and function better.

Gross saless publicity

Dyring the first six month, Luxury Tour aims to pull client consciousness and present our service. We offer clients 5 % -10 % price reduction plan. When clients know more about us, so discount scheme is non applied. Alternatively, we focus on added benefits, for illustration, booking circuit to go across Vietnam, tourists get one counter ticket at Caravelle Saigon.

Ad

Our mark cleavage is mid and high income clients. Most of them are business communities who normally travel by airplain. Therefore in our selling budget, there are sum of money disbursement to publicizing on air hose magazines, such as “ Travel and Entertainment ” .

Public dealingss

Public relation is a tool to better company image positively. It needs long-run program. Developing a trade name name with the image of friendliness and cordial reception, Luxury Tour will form some particular Tourss called “ community connexion ” . Joining this, tourers do non merely have opportunity to go to Vietnam but besides join community activities, such as learning kids, seting tree, farming etc. It makes tourers experience that their money is reinvested into society.

Direct Selling

In term of direct selling, there are many signifiers. To maximise selling effectivity, we suggest to unite direct mail, email selling, societal web, booklet and magazine advertisement. To acquire the mid and high income client database, Luxury Tour could purchase from market research companies or take advantage of current database of Spanish travel bureaus. Then we will direct them our company profile and e-brochure to present our service and encorage them to log in our web site to have a 10 % -discount going voucher for the first visit.

Online Selling

Owning a well-designed and multi-function web site is a tool to attack targeted clients. Our on-line travel advisers who comminicate good in English and Spanish are willing to help clients to seek info, plan tour paths. Customers can book and pay online. The payment method is variable, from bank transportation to PayPal, Master Card, Credit Card etc. Once payment is done, verification, reception, flight e-ticket and a bundle of Vietnamese information are sent to client ‘s electronic mail box.

Budgets and action program

Item

Jun-11

Jul-11

Aug-11

Sep-11

Cost

( USD )

Department / Employee name

Measure of Success

Making concern program, design logo, slogan and complete registry paperss

1st

1st

A

A

2,000

Nguyen Mai Ly – The genaral Director

A

Recuit human resource

1st

1st

A

A

1,000

HR Department

recruit experienced employees

Design circuit paths and trade with providers

1st

31st

A

A

1,500

Operation Department

Tour paths are design to run into Luxury Tour targerted market demand and local providers are pleased with our petition and agree to offer competative monetary value

Contact with some Spanish travel companies, pursuade them to corporate with Luxury Tour and subscribe the contracts

15th

A

15th

A

5,000

Operation Department

At least 10 Spanish travel companies are interested in our offers and agree to collaborate with Luxury Tours

Design Website and booklet

1st – 15th

A

A

A

1,000

Admin Department

The web site is good designed, easy-to-follow and imformative

Discuss with touristry web sites for streamer exchange

15th

15th

A

A

1,000

Gross saless and Marketing Department

our streamer is posted at all sites as listed

Print booklet and distribute at luxury hotels, Tan Son Nhat airdromes and other amusement centres

15th

15th

A

A

3,000

Gross saless and Marketing Department

Our booklets are delivered to the targeted clients

Ad on travel magazines and newspapers

15th June – 15th December 2011

700

Gross saless and Marketing Department

Luxury Tour information is advertised for 7 months ( June – December 2011 )

Organize Tourss for 10 major Spanish travel representative and 10 Spanish travel journalists to Vietnam

A

A

15th

5th

20,000

Operation Department

All invitees are pleased with our service and after this circuit, 10 articles will be written and published over the following month in major travel magazines and web site in Spain

Opening ceremonial

A

A

A

8th

2,000

A

100 invited invitees, including providers, Spanish travel companies, imperativeness, Spanish business communities in HCMC and others

Sum

37,200