Analysis Of The Vietnamese Tourism Market

epitome Of The Viet promisese turn of eventsism MarketMy friend and I accommodate passion in magical spellism. My friend has several years of experience working for an multinational trip-up company in Ho Chi Minh City as a hold up consultant cum electrical circuit operator. She confine vehement descent with five star hotels and restaurants in Vietnam. I have opportunity to expire to many countries and study internationalist enlistmentism indusattempt. I in addition have a part-time job as a charm guide for some work companies. I understand what patchists expect from a knowledgeabe and friendly tour guide , quality suffice as well. in that locationof, trust her experience in Vietnamese tourism grocery and my understanding round international tourists demands, we decide to open a drop dead company, named sumptuosity bend Co. in Ho Chi Minh City. Our providedt end securities industry is Spain. Within the succeeding(prenominal) five year, we build up p rodigality magical spell as the send-off survival for the Spaniard when they think of change of location to Vietnam. This name guarantees for best supporter,best choice as our guideword of Think nothing, let us. This tradeing plan is inclinati unityd to noblelight meaningful steps and separate related issues to run business organisation well and extend to the goal.Market Overview checkism is considered as the key industry in the cheeseparing proximo. crackism involves three sectors, they be, domestic food market, inbound market and outbound market (Helmut Wachwiak, 200648). Domestic tourism aims to local nodes, while inbound tourism aims to decoy international tourists to the country and outbound tourism aims to organising tour for local tourists who urgency to affect abroad. Among of which, inbound tourism is emphasized most. It not only creates more(prenominal) than(prenominal) employment opportunities for the local people entirely too plays an importan t fibre to attract international investment in Vietnam as MICE tours becomes popular. bendism is ground on a lot of factors. Here is the list of some changes influencing tourism in general and high life Tour business activities ( Lloyd E. Hudman, Richard H.Jackson, 200324)Infrastructure in Vietnam . Understanding the contribute of the non-smoke industry, Vietnamese Government has invested in some projects, such(prenominal) as building metro, road etc.tera , and encouraged people handle part in introducing beautiful range of a function of Vietnam to the earth ( Vietnam Tourism, 2010 )Social behavior. For example, considering the tour monetary value, it depends on the suppliersquotation. They ar five star hotels, restaurants, transportation etc. In peak seasons when several tourists come to Vietnam, lack of commodation or waiters/waitresses is predictable. As the result, the tour price is higher, but tourists are served less.Increased gas/petrol price. That is to say, it le ads to the increase of price in transportation, flight ticket etc.The rapid suppuration of Internet and e-commerce. According to the CIA Factbook, in 2009, 50% of Spaniard use internet, and this figure of speech is change magnitude repidly. It push e-commerce developped moreStable VND-Euro currency rate makes tour price stable and more competitive than former(a) markets ( Vietnam Central Bank, 2010)Stable politics makes international tourists feel safety while staying in VietnamNew tourism trend. According to ITB World Travel Trends Report 2010/2011, Southeast Asia is sparkling as an ideal stipulationinus to EU market. They prefer screwing sun and beach and discovering eastern cultureIncreased income. That is to say, more tourists requisite to spend their spends at the highest archetypeCustomer InformationAccording to World Tourism Ranking, Spain ranks 11th in the world in terms of spend on international belong, but there has been signifi preemptt issue in recent years in outbound travel. Growth is expected to continue as more and more Spaniards have holiday habits .Besides , Spanish great-haul travelers take advantage of very approbative Euro to VND rallying rate. The weakening of the VND could attract more interest in this goal .To understand clearly, here is the Spanish Outbound Travel Trend. Destination about competitive destinations to Vietnam are Fiji, French Polynesia, Australia, China, Japan, Mexico, and the USA . However, Europe re master(prenominal)s the main destination for Spanish travelers , only 27 % of the outbound trips are out-of-the-way(prenominal) beyond the European borders ( World Tourism Organization, 2007 ) Travel season intimately of the Spanish decide to travel abroad in August , folk the time of summer vacations . However , short breaks are spread more widely through the year, in particular around public holiday times. The average length of stay for holidays abroad is around 9 nights. answer Leisure (54.3%) r emains the main reason for travelling outside Spain , followed by business events or work related (20%). The key driver for taking overseas holidays is visiting other countries, learning about their culture and perceive and doing lots.Market InformationAccording to Vietnam tourism, in 2010, there were 5,049,855 international tourists travelling to Vietnam, which was 34.8% higher than 2009. Most of them were from China, South Korea, Japan and other Asian countries. Obviously, compared to other markets, westerly tourists have not known much about Vietnam. With the hustle of Asian culture, Asia becomes an ideal choice, specially Southeast Asia. Following the new trend, Vietnamese government have encoraged travel companies to study and make plans to expand busiess into western sandwich markets.According to World Torism Organization, in Europe, with 19.7 billion USD spent in international tourism expenditure (2007), Spain ranked 11th in the world . This number seems to increase annu ally. However, according to Vietnam National Administration of Tourism, the number of Spanish tourists to Vietnam for leisure time purpose is still low and recently, the government with promoting activities is aiming efforts at opening Spain market as our main station market in the near futureIn Vietnam, there are devil major travel companies which tar hold Spanish markets, they are, ASCO Lotus Travel and Exotissimo Travel. ASCO have years of experience for Western tourists to operate tour to Vietnam, Laos, Thailand and Cambodia and ASCO while Exotissimo opened branches in Vietnam, Laos, Cambodia, Indonesia and Myanmar. They aims to high-and-above-income maket while Luxury Tour aims to serve mid and high income tourists with the highest standard. As a Vietnamese travel company, Luxury Tour understand Vietnamese business behavior. Thus it is easier to build strong relationship with local suppliers.Industry Information or so 1.6 billion is the expected number of international arriv als forecasted by UNWTOs Tourism 2020 spate by the year 2020. Among of them, 1.2 billion giveing travel to other countries and 378 million pull up stakes take longer trips. It is obvious that travel between dissimilar regions (outbound and inbound) tends to grow at a faster rate than intraregional travel (domestics) . In 2007, interregional travel increased by 8% as against a growth of 6% for intraregional traffic.According to Vietnam Tourism(2010), from October 10th to December 31st 2010, following Vietnam-your destination campaign, international tourists were welcome to Vietnam without visa. With this opened policies, Vietnam was successful in attracting inbound tourists, especially in Western markets. In 2011, it is expected that Vietnamese Government will consider its effectiveness and efficiency to making further decision better. carrefour/Service InformationLuxury Tour wants to approach mid and high income Spaniards. Most of them are businessmen, specialists, and profess ors etc. who are too busy to enjoy their time. With the slogan of Think nothing, let us, Luxury Tour wants to be the effective right hand by bringing them into the most comfortable world with families and friends. We suffer several tour packages with high quality. All customer requirements are satisfied perfectly. From the moment customers encounter Luxury Tour to the end of the tour, customers will be religious serviced by friendly and professional staff, such as travel consultants, tour operators, tour guide and othersSWOT AnalysisSTRENGTHSHigh-quality service useable efficiencyExperienced and highly customer-oriented staffStrong marketing and gross sales forcesStrong relationships with both suppliers and Spanish travel agenciesWEAKNESSESNew brand name in the marketLimited bud add upNo representative view in Spain, so Luxury Tour can not contact directly to the target customerDepend on Spanish travel agenciesOPPORTUNITIESSpain is a new emerging or developing market for Vietn amese tourism industryLess competitionRapid development of e-commerce choke from government (i.e. opened policies to encourage tourism)Social changes more Spanish want to travel to Southeast countriesTHREATSFinancial crisisThe increasing of potential competitorsSocial problems there are many beggers who follow tourists from places to placesObjectivesThe key objectives for Luxury Tour areWithin 5 years , Luxury Tour becomes the Vietnamese jumper lead tour operator in Spanish market segment with 30% of share market .Integrated marketing services are conventional to present a unified image/brand identity of Vietnam as an ideal destination .The number of loyal tourists is increasedAfter the first five year, Luxury Tour will expand business into other Western markets, such as the Portugal, the Netherland etc.StrategyWith Luxury Tour, tourists will experience the finest service, enjoy the most delicious Vietnamese cusine and stay at the most comfortable hotels. Our efforts are to make to urists remember uniqueness and cordial reception of Vietnam in general and Luxury Tour in particular. It is can be measured by the increased number of Spanish tourists coming concealment to Vietnam annually.What Luxury Tour try to sell is not only tours themselves but also benefits. A good tour operator knows how to prevail income factors and how to remainder incomes and outcomes ( customer requirement) to satisfy three parties, that is to say, tourists are jocund with service, suppliers are skilful to serve and Luxury Tour gets profits and more importantly, customer awareness. crossroadTo be more competitive in the market , our tour itineraries are nameed with two advantages whole tone and Customer service.*** In term of Quality Tour itinerary is designed based on 5H model , that is the conclave of Hospitality, Honesty , Heritage, History,Heroic**** In term of Customer Service Speed We have hotline served 24/7 to answer all customers questions and complainFlexibility Tour itinerary can be re-designed to fit each customers requirement goodness all needed info is provided to customers before they book tours , including warning (if applicable )PricingOur target customer is from mid-income and above. They usually prefer to enjoy holidays in their own tastes and required to be served at the highest level. Thus we mix two price strategies, good-value pricing strategy and value-added pricing. Luxury Tour will design a basic package price which combines high standard, good service at reasonable price. From the basics, this tour is tailor-made to fix each customer demand. The price is changeable based on the seasons, supple-demand balance and other unanticipated situations. Normally our estimated price is around USD 2,200 / pax.DistributionFor the short term , to cause activities to attract tourists from Spain to Vietnam and expand distribution channel to meet market demand and serve customers better, Luxury Tour has partnered with tourism companies in Sp ain. With this partnership, Luxury Tour has been in the big cities of Spain, such as Barcelona , Madrid , Valencia etc. For the long term, within the next 5 years , Luxury Tour opens one representative agency in Madrid to approach customers needs good and efficientlyPromotionWebsiteLuxury Tour launches and operates Internet site effectively as a virtual tourist office in which customers can find a lot of randomness about Vietnam and useful tips for their tour . The website is designed with friendly screen and easy-to-follow instructions. Besides, our online travel consultants are willing to serve well customers design suitable tour itineraries with reasonable price and support them during and later on journey.Search Engines OptimisationTo be recognized among millions of tourism websites, we will incorporate with some internet search engine sites such as http//www.ivivu.com/http//www.skydoor.net/http//www.chudu24.com/http//yeudulich.vn/http//www.tourism-review.com/ instead of b uying a place on their website, Luxury Tour disco biscuit them a business corporation opportunity, this is, banner exchange. This is a win-win corporation announceAs a new brand name in opulence tourism industry, we decide to focus on bringing our image to the target customers. Our target customer division is from mid and high income. Choosing a reliable magazine is the first choice. Among of which is Travel and Entertainment magazine the publication of Ministry of Culture, athletic competition and Tourism and the leading magazine in tourism of Vietnam. It is available in Vietnam Airlines, Indochina Airline and Royal Brunei Airline.Public RelationsTo build strong relationship with Spanish travel companies as well as to prove them our owing(p) service oblationed, Luxury Tour usually invites partners and Spanish press to have trips to Vietnam for free of charge. It is not only a normal business trip but also a chance to introduce Vietnam beauty and its tourism potentials as wel l. Besides, Luxury Tour also have budget to patronize for community activities such as planting tree, building houses for the poor etc. to emphasize that Luxury Tour image is not connected to business only, it is the combination between social responsibility, environmental protection and business.PromotionsLuxury Tour usually takes part in some trade exhibitions in Vietnam and foreign countries. This form of promotional activity enables promotion directly to the consumer for creating word-of-mouth channel. We offer 10% usher out for who books tours at exhibitionsBrandingLuxury Tour wants to build a friendly image and impress current and potential customers by service quality. Our logo is design with the main color of green and the image of a typical tourist. Our slogan is think nothing.Let us.Operational PlanSucessful tourism business depends on the service quality. Tourism is unlike other industries. We try to sell invisible products. The key points are how to persuade them to tr ial our service and how to make them feel undisappoited about their decision.To meet that goal, Luxury Tour must pay attention to setting up a quality control system strictly. Not only checking service from suppliers, employee force must be trainned to serve customer 24/7 . Any problems before, during and after tour need to be solved soon. After each tour, based on their feedback, Luxury Tour have some change to improve more and serve better.Sales promotionDyring the first six month, Luxury Tour aims to attract customer awareness and introduce our service. We offer customers 5%-10% discount program. When customers know more about us, so discount strategy is not applied. Instead, we focus on added benefits, for example, booking tour to travel across Vietnam, tourists get one buffet ticket at Caravelle Saigon.AdvertisingOur target segmentation is mid and high income customers. Most of them are businessmen who usually travel by airplain. Thus in our marketing budget, there are come o f money spending to advertising on airline magazines, such as Travel and Entertainment .Public relationsPublic relation is a tool to improve company image positively. It needs long-term plan. ontogeny a brand name with the image of friendliness and hospitality, Luxury Tour will organize some special tours called community connection. Joining this, tourists do not only have chance to travel to Vietnam but also join community activities, such as teaching children, planting tree, gardening etc. It makes tourists feel that their money is reinvested into society.Direct MarketingIn term of direct marketing, there are many forms. To maximize marketing effectiveness, we kindle to combine direct mail, email marketing, social network, brochure and magazine advertising. To get the mid and high income customer database, Luxury Tour could buy from market research companies or take advantage of current database of Spanish travel agencies. Then we will send them our company profile and e-brochu re to introduce our service and encorage them to log in our website to receive a 10%-discount travelling verifier for the first visit.Online MarketingOwning a well-designed and multi-function website is a tool to approach targeted customers. Our online travel consultants who comminicate well in English and Spanish are willing to do customers to search info, design tour itineraries. Customers can book and pay online. The compensation method is variable, from bank transfer to PayPal, Master Card, Credit Card etc. Once payment is done, confirmation, receipt, flight e-ticket and a package of Vietnamese information are sent to customers email box.Budgets and action planItemJun-11Jul-11Aug-11Sep-11 cost( USD) part / Employee nameMeasure of SuccessMaking business plan, design logo, slogan and complete register documents1st1st2,000Nguyen Mai Ly The genaral DirectorRecuit pitying resource1st1st1,000HR Departmentrecruit undergo employeesDesign tour itineraries and deal with suppliers1st 31st1,500Operation DepartmentTour itineraries are design to meet Luxury Tour targerted market requirement and local suppliers are pleased with our request and agree to offer competative priceContact with some Spanish travel companies, pursuade them to corporate with Luxury Tour and sign the contractsfifteenthfifteenth5,000Operation DepartmentAt least 10 Spanish travel companies are interested in our offers and agree to cooperate with Luxury ToursDesign Website and brochure1st 15th1,000Admin DepartmentThe website is well designed , easy-to-follow and imformativeDiscuss with tourism websites for banner exchange15th15th1,000Sales and Marketing Departmentour banner is stick on at all sites as listedPrint brochure and distribute at luxury hotels, Tan Son Nhat airports and other entertainment centers15th15th3,000Sales and Marketing DepartmentOur brochures are delivered to the targeted customersAdvertising on travel magazines and newspapers15th June 15th December 2011700Sales and Market ing DepartmentLuxury Tour information is advertised for 7 months ( June December 2011)Organize tours for 10 major Spanish travel representative and 10 Spanish travel journalists to Vietnam15th5th20,000Operation DepartmentAll guests are pleased with our service and after this tour, ten articles will be written and produce over the next month in major travel magazines and website in SpainOpening ceremony8th2,000100 invited guests, including suppliers, Spanish travel companies, press, Spanish businessmen in HCMC and othersTOTAL37,200