Aims and Objectives
The marketing system plays a crucial role in the travel industry, highlighting the significance of effective marketing activities for businesses like Sanna Tour Joint Stock Company An evaluation of their marketing execution and implementation reveals key insights into their operational effectiveness and overall impact on the travel market.
To enhance business efficiency, it is essential to analyze and refine marketing activities within the company Implementing targeted marketing strategies can effectively attract tourists to utilize tourism products, especially in the context of the ongoing pandemic.
Scope of the Study
The research focuses on the marketing strategies employed by Sanna Tour Joint Stock Company to attract tourists in recent years It examines the company's marketing activities and their implementation, as well as offers solutions to enhance the competitiveness of its tourism products.
Method of the study
During the course of my project, the methods I used included:
- Collect and process data: Directly observe the activities and work of marketing staff to collect data These data are processed and analyzed for inclusion in the thesis.
- Evaluate and draw from practical experience
- Use internet to search for information
- Questionnaires and interviews: I have designed a questionnaire to survey tourists come to Sanna Tour to receive their information and ideas when participating in the company's travel program.
In conclusion, I integrate the theoretical knowledge gained in the travel industry with my practical experiences at the tour company where I have been working Through my observations and insights, I provide valuable suggestions and solutions to enhance the company's operations.
Organization of the Study
The structure of my research is divided into 6 parts:
Chapter 1 serves as the introduction, outlining the rationale, aims, objectives, scope, and methods of the study, as well as its organizational structure Chapter 2 delves into the theoretical background essential for understanding the research context.
Chapter 3 is the case description for Sanna Tour
Chapter 4 is the analysis and evaluation of the current status of marketing activities at the company Sanna Tour
Chapter 5 is the difficulties and solutions
Chapter 6 is the conclusions and suggestions
THEORETICAL BACKGROUND
Travel business trade and travel business
2.1.1 Definition of travel trade and travel business
Understanding the distinction between travel and tourism is essential, as both concepts encompass various activities Travel activities involve market research, the creation of travel packages, and the promotion and sale of these programs, either directly or through intermediaries This process includes organizing and implementing travel programs and guiding tours There are two primary approaches to exploring the relationship between travel and tourism, each offering unique insights into the industry.
Filial piety in the context of travel encompasses all human activities involved in moving from one location to another, along with related activities While tourism is a component of this broader travel concept, it is important to note that not every travel activity qualifies as tourism.
Filial piety in the context of travel encompasses all human activities that involve moving from one location to another, along with associated activities While tourism is a component of this broader travel concept, it is important to note that not every travel activity qualifies as tourism.
The travel approach, defined within a narrow scope, specifically focuses on distinguishing travel businesses from other tourism-related activities like hotels, restaurants, and entertainment This approach limits the travel business to organizing travel schedules and activities A notable example of this definition can be found in the Law on Tourism of Vietnam.
“Travel is the construction, sale or organization of a part or the whole implementation tourism program for tourists "
The travel business in Vietnam encompasses both domestic and international sectors Domestic travel involves creating, selling, and organizing tourism programs specifically for local tourists, requiring three essential conditions to be met Conversely, international travel focuses on developing and implementing tourism programs for foreign visitors, which must satisfy five specific criteria Therefore, in a narrow sense, the travel business in Vietnam is distinctly defined by its primary product: tourism programs.
A travel enterprise is an economic organization that operates under its own name and assets, with a stable headquarters and legal business registration, aimed at generating profits through the creation, sale, and execution of travel programs for tourists Additionally, these businesses may engage in intermediary activities to sell products from travel suppliers or facilitate other business operations, ensuring comprehensive service to meet the tourism needs of visitors from start to finish.
In general, travel businesses differ mainly in the following aspects: Scale and area of operation, Audience, Level of contact with travel product suppliers, Level of contact with tourists.
The travel industry encompasses various forms of organization and legal statuses, leading to different names such as travel agency, travel company, international travel agency, and domestic travel agency In Vietnam, the majority of travel businesses are referred to as international and domestic travel centers, which operate within the framework of travel companies.
2.1.2 Tourism product definition and classification
According to the definition of the 2005 Law on Tourism of Vietnam:
A tourism product encompasses a range of services designed to meet the diverse needs of travelers during their trips This includes essential offerings such as transportation, accommodation, dining, entertainment, and guidance Whether presented as a standalone service or bundled in a package from various providers, tourism products aim to enhance the overall experience for tourists.
Single Products: Products are used only for supply to satisfy a specific need of a customer For example: Self-drive car rental service, freight service,
A synthetic product is designed to meet the diverse needs and desires of tourists simultaneously An example of this is a package tour service that combines various individual offerings, including transportation, accommodation, dining, and entertainment, to create a comprehensive travel experience.
2.1.2.1 Tour program and package tour program
Package tours vary widely based on different classification criteria, making them a fundamental offering in the travel industry These tours are not only diverse but also legally mandated, serving as a core product for travel companies.
A package tour program is a comprehensive travel solution that combines essential services from various providers at fixed prices This offering is designed to meet the primary needs of travelers, ensuring a seamless and enjoyable trip experience.
Transportation services are a crucial element of any package travel program, tailored to meet the specific needs of each trip Factors such as the type of transport, its classification, terminals, ports, airports, and the reputation of carriers play a significant role in how tour operators select the most suitable transportation options for their itineraries.
Accommodation services play a vital role in fulfilling guests' needs for sleep and rest, allowing them to recharge after long journeys These services are essential elements of any comprehensive travel package The selection of accommodations, including the type of lodging and bedroom arrangements, is tailored to meet the specific requirements of each travel program.
Food service encompasses a variety of meals, menus, and beverages, ensuring a diverse dining experience An itinerary outlines the schedule, detailing each stop, the duration of stays, travel times and distances between locations, and specific daily activities with designated times and spaces.
Sightseeing services and entertainment play a crucial role in fulfilling tourists' expectations at their chosen destinations Travel businesses must carefully select attractions and entertainment options based on specific conditions to enhance the overall visitor experience.
Marketing theory
2.2.1 Marketing and tourism marketing definitions
Everything you need to know about the definitions of marketing Marketing is a very broad term that is difficult to conceptualize and define.
According to the American Marketing Association, marketing involves the strategic planning and execution of the conception, pricing, promotion, and distribution of ideas, goods, and services, aimed at facilitating exchanges that meet both individual and organizational goals.
Marketing encompasses the essential business functions that focus on stimulating and fulfilling consumer demand, as defined by Cundiff and Still.
Philip Kotler defines marketing as a social and managerial process that enables individuals and groups to satisfy their needs and desires by creating and exchanging products and value with others.
Marketing involves engaging with the market to address and fulfill people's needs and desires It is fundamentally a human activity, including organizational efforts, aimed at satisfying these needs and wants through exchange.
Tourism is a multifaceted and interconnected service economy, characterized by the integration and synchronization of its products As a result, the tourism industry encompasses a wide range of marketing concepts and strategies that are effectively utilized in other sectors Tourism marketing involves the application of established marketing theories specifically within the tourism domain.
Tourism marketing encompasses the fundamental principles of marketing theory while adapting to the unique characteristics of tourism production and consumption Although a unified definition of tourism marketing remains elusive, the World Tourism Organization (UNWTO) defines it as a management philosophy that involves researching, predicting, and aligning with visitor preferences to effectively deliver products that meet the target market's desires, ultimately maximizing profits for the tourism organization.
Definition of Michael Colman: “Tourism marketing is a system of research and planning to create for tourism organizations a complete management philosophy with appropriate strategies and strategies to achieve their goals ".
Travel marketing is a strategic administrative function that organizes and directs all business activities related to understanding consumer needs and purchasing power Its primary goal is to create demand for specific products or services, facilitating their transfer to end consumers to achieve the profit targets set by the tourism business.
Inheriting from the above definitions, from the tourism management perspective and the tourism business perspective, tourism marketing can be understood as follows:
Tourism marketing involves applying marketing strategies specifically within the tourism sector, focusing on the integration of travel providers to meet the desires of travelers across various market segments This approach aims to promote sustainable development for travel destinations while enhancing the overall visitor experience.
Tourism marketing serves as a crucial administrative function within the tourism business, focusing on aligning all activities with the desires of the target market To succeed, a tourism business must offer superior and innovative tourism products ahead of its competitors, ensuring that it meets the evolving needs of consumers effectively.
Travel marketing is the job of everyone in the tourism business, in which the marketing department plays a key role.
Tourism marketing involves analyzing customer needs alongside tourism products and services to effectively meet those needs This process aims to attract customers while simultaneously achieving the organization's goals.
+ It is an analytical research process:
+ Modes of product supply and support of the organization
+ To bring customers to products to:
+ Satisfying the needs of customers
+ Achieve the goal of the organization (profit)
2.2.2 Basic role and function of marketing
2.2.2.1 The role of Marketing in business
Marketing helps businesses improve the level of their brand awareness to customers Especially through online marketing tools that are low-cost and more accessible than traditional marketing.
Marketing is essential for businesses as it not only attracts new customers through unique product design, quality, and competitive pricing, but also plays a crucial role in retaining existing customers and fostering brand loyalty.
Marketing serves as a vital tool for informing customers about products and services, highlighting a business's unique advantages It also plays a crucial role in addressing business crises, enhancing customer understanding, and fostering trust in the brand.
Effective marketing strategies are crucial for businesses to sustain their market position A strong customer base leads to increased sales, creating favorable conditions for ongoing development through new product research, scaling operations, and investing in infrastructure This commitment ensures that businesses consistently deliver the highest quality to their customers.
2.2.2.2 The basic function of marketing
To enhance business success, it is essential to implement adaptive strategies that align products with market demands Marketing efforts must stay ahead of other business activities to effectively identify and respond to evolving consumer needs and environmental changes This proactive approach enables marketers to advise management on product development, target markets, and the timely application of technology in the marketing process, including optimal timing and volume for new product launches.
To effectively launch new products, marketing must analyze advanced global consumer trends, encouraging customers to embrace innovative offerings This approach not only influences changing consumption habits but also aligns with the modern, rational, and efficient spending behaviors of today's consumers.
- Performing the distribution function is all marketing activities to promote the highly efficient distribution process, the product arrives at the right place, quality assurance time
+ Find out and select suitable distribution intermediaries, including wholesalers, retailers, agents
+ Guide customers to sign contracts, customs procedures, delivery procedures to shorten the distribution process, determine the relationship with customers.
CASE DESCRIPTION
An Overview on Sanna Tour Company
3.1.1 General Information about Sanna Tour Company
Name of Company: Sanna Tour
Address: 289 Dong Da- Hai Chau district – Da Nang city.
Email: sale3.sannatour@gmail.com / info@sannatour.com
History of formation and development:
Sanna Tour Joint Stock Tour, based in Da Nang, is a travel company specializing in teambuilding, travel, and event organization Since its establishment on March 16, 2018, the company has been actively contributing to the tourism industry for nearly four years.
Director: Ms Nguyen Thuy Ngoc Sang.
Since its establishment and development, Sanna Tour Joint Stock Company is aiming to become one of the leading travel agencies in Vietnam.
As global economic growth continues, domestic enterprises are expanding, leading to a heightened interest in world exploration and resort tourism In response to this trend, Sanna Tour Joint Stock Company offers a variety of tours designed to take you to your desired destinations, all while ensuring exceptional service at affordable prices.
Sanna Tour always gives you tours products with the most reasonable price, with the best quality.
In recent years, the world has experienced significant changes in various fields such as the economy, culture, and education, leading to an enhancement in people's lives and an expansion of social needs As a result of this development, the tourism industry has been growing rapidly, making substantial contributions to the national economy and fostering exchanges at both regional and international levels.
Da nang too, always focused on tourism The tourism industry is an important sector for the Danang's economy.
Sanna Tour Company is a travel company with headquarters in Da Nang City
Sanna Tour Joint Stock Company plays a pivotal role in enhancing the tourism potential of Da Nang, a city renowned for its abundant opportunities in the industry By acting as a bridge between local attractions and global travelers, the company showcases the beauty and culture of Da Nang to both domestic and international audiences, while also introducing diverse cultures from around the world to the Vietnamese people.
Sanna Tourism Company is a leading travel agency specializing in various services, including brokerage, auction, and passenger transport via waterway and airway The company also offers support services related to transportation, short-stay accommodations, computer programming, data processing, and advertising Renowned for organizing both domestic and international tours, Sanna Travel provides travel insurance and employs enthusiastic, attractive tour guides Clients enjoy luxurious accommodations at top-rated hotels, ensuring excellent quality at competitive prices Additionally, Sanna offers visa consulting services for travelers seeking independent journeys.
Sanna Tour simplifies the booking experience with its motto, "Book a relaxed ticket for the outing," ensuring a hassle-free process Committed to providing high-quality tour products, Sanna Tour offers competitive prices, making it an ideal choice for your travel needs.
Sanna Tour is set to expand its customer base by catering to both institutional and individual travelers, offering a variety of domestic and international tours The company plans to enhance its MICE (Meetings, Incentives, Conferences, and Exhibitions) team-building experiences while also developing unique tours focused on exchange meetings and travel exploration, addressing the growing diversity of visitor needs.
Currently, the company's head office consists of departments: Operation room, Single ticket office, Business Department, Air ticket office, IT - marketing department, Instruction room, Team building room, Accounting department
IT - marketing department Operation room
Instruction room Single ticket office
Air ticket office Accounting department
Functions and tasks of each department
- As the highest ranking person of Sanna Tour, you will be responsible before the company and state the entire business activities of the company.
- She directly manages and decides all business activities of the enterprise
- They help the director and work as assigned by the director They are responsible to the director and the law for the assigned tasks.
- They perform the task of checking and supervising all departments at the direction of the director.
- Preparing the company's programs, operation plans, business structure management plans, cooperation issues and advising the director on all other important issues.
- Listen, phone call at the operating room.
- Set all service and monitoring services of partners and suppliers.
- Operating, supervising, arranging driving tour.
- Operating, supervising, arranging and guiding tours
- Handling violations of drivers, instructors.
- Resolving inquiries, complaints of agents, customers, suppliers.
- Daily work report for superiors
- Provide customers with daily retail services such as sightseeing tickets, car rental…
- Selling daily open tours for guests.
- Expand and maintain relationships with customers and suppliers, local authorities at destinations that the company is exploiting in the company's tourism programs.
- Organize the sale of tourism programs as well as other products for visitors.
- Sales Department must also research, build and develop new products, advise the director on market expansion and exploitation of new business types.
- Keeping tickets, issuing tickets, providing domestic and international tickets for customers, bringing revenue to the company.
- Coordinate with the operating room to provide air tickets with travel programs for customers.
- Organization of arranging tour guides for tourism programs.
- A bridge between service providers and customers, giving customers the guaranteed services.
- Being the direct representative of the business in the process of direct contact with customers, serving guests during the tour program takes place.
- Handle customer queries, complaints and situations arising during the trip.
- Coordinate with the executive department to build tourism programs from content to the price suitable to customer needs, proactively give ideas about new travel products of the enterprise.
- Advertising the company's tourism programs as well as the company's image by means of media.
- Managing the company's computer system, dealing with problems of working machines in the company such as printers, fax machines,
- Building teambuilding programs for customers.
- Introduce Team building products to customers and advise them to bring services that best suit customer needs.
- Organizing the implementation of team building programs, bringing customers new and unforgettable experiences.
- Rental of equipment for teambuilding
- Organization performs financial and accounting jobs of the company Record keeping track of your business expenses.
- Implement periodic and timely reporting regime to reflect changes for leaders to take handling measures.
Tourism Program: Sanna Tour Travel Company provides domestic and foreign package tour services to destinations that are very popular with tourists today.
Table 1: Information board tour services package in the country and abroad with destinations that are very attractive to tourists today.
Tourism Ba Na Tourism Campuchia
Tourism Cu Lao Cham Tourism Lao
Tourism Hôi An Tourism Thai Lan
Tourism My Son Tourism Malaysia
Tourism Đa Nang Tourism Singapore
Tourism Ly Son Tourism China
Tourism Quang Binh Tourism Janpan
Tourism Ninh Binh Tourism American
Sanna Tour provides a diverse range of travel experiences, including Premium, Cheap, Eco, Honeymoon, Community, Summer, Tet, and Free and Easy tours Each tour program is designed to cater to various preferences and budgets, ensuring memorable adventures for all travelers.
Sanna Tour Company offers a variety of exciting day tour programs, including Ba Na Hills, Ngu Hanh Son-Hoi An, Hue city, and Cu Lao Cham tours These tours cater to travelers of all ages who have a passion for exploration but limited time With flexible scheduling and a commitment to high-quality service, Sanna Tour ensures a memorable experience that consistently receives positive feedback from guests.
Sanna Tour tourism company is dedicated to long-term tour programs in key Central region destinations, including Hoi An, Da Nang, and Hue, which are its primary markets Catering to travelers with ample time for extended trips, typically lasting 3-5 days, the company offers well-organized itineraries that encompass these three iconic locations With a focus on high expertise and quality service, most guests leave with positive impressions and memorable experiences Sanna Tour effectively promotes its tourism programs under the pioneering slogan "Central Paradise."
Table 2: The system of Central Paradise tourism programs.
Da Nang – Hoi An – Ba Na – Ngu Hanh Son 3 days 2 nights (Depart daily)
Da Nang – Hoi An – Hue 4 days 3 nights (Depart daily)
Da Nang – Ba Na – Mau coconut forest –
Hoi An 4 days 3 nights (Depart daily)
Da Nang – Son Tra – Ba Na – Artinus 3D –
House upside down – Hội An 4 days 3 nights (Depart daily)
Da Nang – Hoi An – Ba Na – Hue 3 days 2 nights (Depart daily)
Da Nang – Ba Na – Cham islands – Hoi An 4 days 3 nights (Depart daily)
Da Nang – Son Tra – Ba Na – Cu lao cham 3 days 2 nights (Depart daily)
(Source at Sanna Tour Company)
Besides, the tour program "Heritage Journey" is also included in the selected program system of customers
Table 3: Travel program system Heritage Journey.
Da Nang – Ba Na – Hoi An – Hue-
5 days 4 nights (Departure: Wednesday, Wednesday, July, weekly)
Da Nang – Ba Na – Hoi An – Hue-
4 days 3 nights (Departure: Thursday, Sunday every week)
Da Nang – Hue – Paradise Cave 3 days 2 nights (Departure every 2.6 days)
(Source at Sanna Tour Company)
A combined tourism program, often referred to as a join-in tour, allows travelers to share experiences and expenses with others on the same itinerary, including transportation, sightseeing, and tour guides This type of tour is typically designed for groups, but it is also suitable for small or individual travelers For larger groups of over 25 to 30 guests, the cost of a join-in tour may align with that of a private tour Join-in tours follow a fixed itinerary and are conducted on a daily or weekly basis, offering retail tickets to tourists at consistent pricing for all participants.
- Required travel program (separate): This is a special service, the target market is for people with high affordability, who like privacy and want a meaningful journey for each other.
Table 4: Outbound tourism program system
Phoenix Ancient Town 5 days 4 nights (17/03)
(Source at Sanna Tour Company) 3.1.2.2 Tourist car rental
Sanna Tour is a prestigious unit in the field of car rental services in Da Nang http://www.thuexedanang.biz/ Sanna Tour has more than 20 models from 4 seats to
45 seats, professionally trained driver team and many years of experience in serving tourists.
Sanna Tour is your go-to provider for airline tickets, offering a wide range of options from popular airlines such as Jetstar, Vietnam Airlines, Air Mekong, and Vietjetair We facilitate departures from major domestic airports including Ho Chi Minh City, Hanoi, Hai Phong, Vinh, Dong Hoi, Hue, Da Nang, Quy Nhon, Da Lat, Buon Me Thuot, Phu Quoc, and Con Dao Additionally, we provide international e-tickets to destinations across the US, Europe, Japan, Taiwan, China, Singapore, and Thailand, ensuring a seamless travel experience for our customers.
Sanna Tour is a prominent Teambuilding organizer in Da Nang, specializing in training courses and support for team development With extensive experience, they focus on enhancing human resource capabilities and motivating employees to work more effectively and creatively.
Sanna Tour specializes in organizing a variety of events, including seminars, conferences, year-end programs, customer appreciation events, galas, dinners, press conferences, and training sessions, in addition to their teambuilding programs.
Functions and Mission of the department:
Marketing guides art businesses in detecting customers' needs as well as art of customer satisfaction, business-oriented marketing, and creating proactive posture for businesses.
Marketing is a bridge to help businesses solve relationships well and reconcile the interests of their businesses with the interests of consumers and the interests of society.
Marketing is a powerful tool to help businesses establish their position and reputation in the market.
Marketing serves as the core of all business activities, influencing critical decisions in technology, finance, and human resources It determines essential aspects such as product development, target markets, production methods, and optimal quantities to manufacture.
Real situations of marketing activities at the company Sanna Tour
To enhance customer satisfaction, the company has adopted a strategy of developing diverse tourism products tailored to various customer segments, considering their specific needs and budget This includes offering both short and long-day programs to cater to a wide range of preferences.
The company is dedicated to fostering connections among corporate members through teambuilding exchange programs and offers experimental learning initiatives for children in the city Additionally, it organizes tourism experiences that blend cultural exchange, catering to officials and employees who travel after the Lunar New Year and during summer holidays Notable integrated travel programs include destinations such as Hue, Lang Co, Da Nang, Ba Na, Hoi An, Sapa, Lao Cai, and Moc Chau.
Types of prices the company is using:
- The company is using the psychological price factor for tourism programs
- The seasonal price factor mainly applies to domestic customers.
The Company has strategically lowered its prices for retail customers, ensuring they are more competitive than those of rival businesses This approach recognizes the significant influence that pricing has on the purchasing decisions of retail customers.
- Prices of familiar groups are always preferential Discounts for regular customers, large groups.
- Discount some tourism stimulus programs.
- Offer free rates for large groups of customers, discount commissions.
The price offered by the Company is shown through a number of travel programs:
Table 5: Package price of a tour program of Sanna Tour
Name of the program Price
The Company plays a crucial role in linking tourists to various tourism products, acting as a vital distribution channel Tourists rely on travel agents and companies to access these resources, highlighting the importance of effective service connections Established to fulfill this role, the Company is dedicated to providing optimal solutions that meet the diverse needs of travelers.
Sanna is committed to enhancing customer convenience by offering a variety of efficient booking options, including aircraft reservations, online tour bookings through its website, and phone reservations, all designed to deliver services directly to customers' locations.
In today's digital age, travel operators leverage advanced technology and tailored strategies to effectively engage potential customers, addressing the unique needs of various customer segments By establishing their own distribution channels, these companies ensure swift access to their products for consumers.
For different customers the company has used different distribution orders
For group tourists, especially Vietnamese travelers going abroad, companies often utilize direct distribution methods due to low demand, primarily concentrated in major cities like Da Nang and its surrounding areas This approach is illustrated in the accompanying diagram.
Figure 3: Direct distribution channel map
- With the indirect distribution channel, the company has attracted great contributors to sell the most effective travel programs.
Figure 4: Indirect distribution channel diagram
Upon its market launch, Sanna Tour implemented a push and pull strategy to attract customers The company utilized various marketing intermediaries to effectively promote its tours to the end consumer Notably, promotions and advertising emerged as the most impactful tools in their marketing arsenal.
The company primarily utilizes online advertising by publishing articles on platforms like VnExpress and Vietnam Travel Tour, as well as on the Sanna Tour website Additionally, it produces promotional leaflets and engages in various events organized by the travel association to enhance its visibility.
The company's promotional strategy focuses on implementing competitive pricing during key seasonal events such as holidays, New Year, fairs, and other special occasions Unlike many tour operators who increase prices during peak times like the Tet holiday, the company maintains consistent pricing while also offering additional services This unique approach not only differentiates the company in the market but also helps retain existing customers and attract new ones through various member promotions and discounts.
- For promotional policies when customers join the tour with Sanna tour, there are also a number of hats, t-shirts, pens, backpacks, travel bags depending on the tour form
Direct sales : The company sells directly at the representative office or calls customers The company's sales staff are mostly experienced people, so it is easy to advise customers.
Direct marketing : Most companies send emails or phone calls to loyal customers when there are incentive programs
Sanna Tour prioritizes employee career development by consistently offering training programs that enhance professional skills and ensure adherence to best practices The company actively encourages staff to pursue personal growth and rewards those who make significant contributions Additionally, all official employees enjoy comprehensive social benefits and insurance coverage.
ANALYSIS AND EVALUATION
Analysis business situation of Sanna Tour from 2019 to 2020
4.1.1 Analysis of the real situation of revenue development
Chart 1: The real situation of revenue development
The table shows the revenue growth rate of the company in 3 years.
In 2019, compared to 2018, the total revenue increased by 34.09%, of which domestic tourist revenue increased by 15.72%, international tourist revenue increased by 1.87%.
In 2000 compared to 2019, the total revenue decreased by more than half to 49.94% Domestic visitors increased 7.50% while international visitors decreased 94.19%.
The revenue growth from 2018 to 2019 can be seen while the year 2020 plunges sharp.
The bar chart illustrates a significant decline in inbound visitor revenue from 2019 to 2020, dropping from 521,086,000 to just 30,268 In contrast, domestic passenger revenue saw consistent growth, rising from 346,010 in 2018 to 430,460 in 2020 Additionally, outbound visitor revenue experienced a sharp decrease, halving from 51,006 in 2019 to 26,072 in 2020.
4.1.2 Analysis of the real situation of profit development
Profits serve as key indicators of business performance, and despite being established for nearly three years, Sanna Tour has achieved significant profitability However, by 2020, visitor numbers plummeted by nearly 50%, resulting in a notable decline in profits Currently, travel companies are encountering numerous challenges, underscoring the need for effective strategies to navigate this difficult landscape.
Table 7: The real situation of profit development
Through the data table shows:
In 2019 compared to 2018, the rate of increase in total revenue was 34.09%, while the cost increased by 16.30%, resulting in a 9.41% increase in profit.
In 2020 compared to 2019, it reduces nearly half of total revenue with the rate of -49.94% while profit decreases 63,565
The highest profit in 2019 is 394,089 while 2018 is second with 360,178 2020 is a volatile year when revenue and profit have decreased by more than half compared to previous years.
Despite the overall increase in revenue, costs, and profits, the pandemic has led to a decline in profitability Sanna Tour, established just over three years ago, has shown impressive growth rates, with 2019 outperforming 2018 However, the economic fluctuations of 2020 posed significant challenges Nevertheless, the company's strategic policies are expected to sustain profitability moving forward.
4.1.3 Analysis of the real situation of guests at Sanna Tour
Since its inception, Sanna Tour has focused on a target market primarily composed of urban residents and institutions in Da Nang City, including employees from large corporations, factories, banks, and students from local schools and universities By understanding the unique characteristics of these groups, Sanna Tour can develop tailored products and pricing strategies that resonate with their needs This insight also enables the company to create effective promotional campaigns, underscoring the importance of clearly defining the target market as a crucial factor in the company's overall success and brand building.
Table 8: The real situation of guests at Sanna Tour
The number of guests 354.760 100 506.440 100 255.144 100 Domestic guests 122.000 33.8
The table above shows the number of customers coming to Sana tour company from 2018 to 2020:
Total domestic arrivals increased sharply from 2018 to 2019, but decreased by
In 2018, Sanna Tour welcomed 354,760 visitors, and this number surged to 506,440 in 2019, marking a remarkable 42.76% increase This impressive growth highlights Sanna Tour's ability to attract a significant number of visitors despite being a relatively new establishment.
In 2018, there were 122,000 domestic tourist arrivals, which surged to 245,516 in 2019, marking a remarkable 100.01% increase However, in 2020, the number of domestic tourists saw a slight decline, totaling 188,924 arrivals.
International visitors in 2018 were 232,760 arrivals In 2019, there was a slight increase with 260,852 arrivals, an increase of 12.06% compared to 2018 However, in 2020, international visitors decreased significantly to only 70,152, a decrease of 73.10% compared to 2019.
In 2020, Sanna and travel agencies in Da Nang faced significant challenges, with over 70% experiencing a downturn However, Sanna distinguished itself by pivoting from international tourism to focus on domestic travelers, successfully generating substantial revenue during this tumultuous period.
Evaluation of customer of the company
In light of the ongoing Covid-19 pandemic, it is crucial to assess the current state of enterprises to identify effective business solutions and strategies This involves collecting and evaluating data through customer surveys and questionnaires to analyze the company's performance comprehensively The findings from these assessments will provide valuable insights for decision-making and strategic planning.
120 people with 78 domestic tourists and 42 international tourists Take a look at customer reviews in the appendix
Table 9: Evaluation about the tourism program the company
Chart 2: Evaluation about the tourism program the company
Very Satisfied Satisfied Normal Very Dissatisfied
The data clearly indicates that customers are largely satisfied with the company's travel products, as evidenced by 120 reviews Among these, 75 customers expressed satisfaction with the quality of the travel program, while only 7 reviews were deemed average.
Among the 78 reviews from domestic visitors, 45 expressed satisfaction with the company's products, while 20 reviewers reported being very satisfied with the travel program The average number of reviewers reflected a similar proportion of customers who were dissatisfied.
International visitors have rated the Sanna product quality positively, with 30 votes indicating satisfaction and 12 votes reflecting high satisfaction Additionally, 9 customers provided a neutral rating, while 2 expressed dissatisfaction.
A successful tour program effectively meets customer needs by offering comprehensive facilities and services that enhance their travel experiences Customer reviews indicate that our products are well-regarded in the market; however, some feedback highlights areas for improvement To ensure continued satisfaction and address any concerns, the company must investigate these unsatisfactory reviews and implement solutions for future programs.
Table 10: Evaluation about the price
Cheap Normal Expensive Others Total
Chart 3: Evaluation about the price
The evaluation of Sanna's pricing policy reveals that 58 customers, representing 36.7%, consider the tour program prices to be affordable, while 32 customers, or 26.7%, believe the prices are higher than the market average Additionally, 30 customers, accounting for 26.7%, rated the company's prices as average.
A total of 78 reviews from domestic customers reveal a strong focus on pricing, with 29 votes indicating that they consider prices to be expensive, while 27 votes reflect a preference for cheaper options Additionally, 22 customers rated the tour program prices as normal, highlighting the strict assessment domestic customers have regarding pricing This indicates that price levels significantly influence their participation in travel programs, as there is considerable variation in price comparisons among companies in the retail market.
With 42 votes from international customers, more than 31 comments said that the company's travel program is cheap, while 8 votes are normal and 3 votes are expensive In fact, the price difference is not much and there is little price comparison like domestic customers.
Table 11: Evaluation about the place
Target Amount Purchased tour program through
Company Collaborator Point of Sale Total
Chart 4: Evaluation about the Place
Company Collaborator Poil of sale
The data clearly shows that 50.83% of customers purchase travel programs directly through the company, while 32.5% of customers buy through collaborators, and only 20 customers, representing a smaller portion, make purchases via point-of-sale locations.
A recent survey of 78 domestic tourists revealed that most prefer purchasing travel programs through collaborators, with 34 respondents opting for this method Additionally, 24 participants bought directly from the company, while 20 chose to make their purchases at points of sale.
With 42 domestic customers, the majority of them buy the travel program directly from the company and only 5 buyers through the affiliate No customers buy through the affiliate
The table shows that the tendency to purchase tourism programs through the distribution system differs for foreign and domestic tourists
Table 12: Evaluation about the promotion
Target Amount Company is known through
Chart 5: Evaluation about the promotion
Website Social Network Friends'recommendation
According to recent statistics, customers primarily discover the company through three channels: social networks, the company website, and recommendations from friends Notably, 54.17% of customers, totaling 65 individuals, learned about the company via social media, while 30 customers found it through the website, and 25 were referred by friends.
Among 78 domestic tourists, 35 learned about the company through social networks, making it the most significant source of awareness Additionally, 23 customers discovered the company via its secondary website, while 20 were referred by acquaintances.
Among 42 international visitors, 30 discovered the company through social media, while 7 found it via the website Additionally, only 5 customers learned about the company through referrals from friends.
The table above shows us that today the trend of buying travel programs is mostly via the internet.
Table 13: Evaluation about tour guide
According to Table 13, customer satisfaction regarding the attitude of tour guides is evident, with 53 reviews indicating satisfaction, representing 44.17% of the total responses In contrast, only 5 votes reflect dissatisfaction with the tour guide's attitude.
Among domestic customers, 36 expressed satisfaction with the tour guide's service attitude, making it the most common response Additionally, 30 customers rated their experience as normal, while 9 reported being very satisfied Conversely, only 3 customers were dissatisfied with the tour guide's performance.
With international visitors, the number of guests is very satisfied and satisfied with the tour guide's service attitude is the same.
Merely 7 guests feel normal attitude and 3 guests are not satisfied with the tour guide.
Table 14: Evaluation about foreign languages of tour guide
Target Amount Foreign languages of tour guide
Analysis and evaluation the company's marketing strategy
The company offers high-quality domestic and international travel programs, ensuring that all services align with customer commitments Each aspect of the travel experience is carefully coordinated to maintain a smooth and enjoyable rhythm, leading to high levels of customer satisfaction throughout the journey This dedication to excellence has established a strong reputation among clients.
While the company excels in its product policies, it faces limitations by primarily focusing on tourism during festive seasons and summer marine activities, with minimal engagement in winter tourism and a lack of distinct product offerings.
The company has developed innovative photo products and yearbook tour offerings that are currently unavailable in the market While the yearbook tour project has successfully partnered with a high school in Quang Nam, it has yet to penetrate the Da Nang market due to the novelty of the product.
Sanna Tour Travel Company must enhance product quality and expedite implementation to establish a strong reputation, enabling the successful launch of its two new projects aimed at improving business efficiency and countering competitor imitation.
Sanna Tour has established its own marketing department and selected service providers, but faces challenges in program management and guide outsourcing Despite having a defined customer profile, the company has not effectively tracked customer needs through post-trip evaluation forms, leading to a disconnect in service delivery The lack of ticket distribution to each trip member and insufficient monitoring of services have hindered connections with other providers, particularly in customer service and promotions Consequently, there is a pressing need to enhance service quality.
Understanding Vietnamese consumer psychology, the Company has tailored its pricing to meet the diverse needs of customers, ensuring satisfaction with both costs and services A notable aspect of their tour pricing is the flexibility in service offerings, which has garnered positive feedback from clients Currently, the prices for domestic tours are considered average, aligning with the income levels and preferences of Vietnamese customers who often compare options This pricing strategy not only attracts customers but also emphasizes that, while prices may not be the lowest, the quality of service provided during transfers exceeds that of competitors.
In today's travel market, many companies focus solely on promotional offers, highlighting destinations, travel durations, and prices, often neglecting the importance of customer service While customers are informed about their trip details, the lack of personalized assistance can diminish their overall experience It's essential for travel providers to prioritize customer service alongside their sales programs to enhance satisfaction and loyalty.
After carefully researching all aspects and aspects, the Company has offered suitable prices for different customers and is accepted by them.
Besides the right pricing policy, the company also has weaknesses in pricing such as:
-Despite offering a commission discount rate for large groups of customers, the discount is still as low as 5% for customers over 20 people.
-Psychological and seasonal pricing are applied but not widely available to customers.
Some foreign travel programs are perceived as superior to their competitors due to partnerships with major companies To maintain their customer base, these companies must implement strategies to reduce costs effectively.
While the company has been applying a suitable price match strategy, the evaluation of factors influencing the pricing process lacks consistency and thoroughness, leading to occasional inconsistencies and flaws in pricing.
- Prices are for chapters the program is relatively even without a clear difference between the customer market potentials with other customers.
Promotional offers are infrequent and lack appeal to customers, while the company's pricing strategy remains rigid, maintaining stability with minimal fluctuations This approach has notably impacted the company's overall business performance.
The company has established two effective distribution channels—direct and indirect—operating successfully in the central region Additionally, it has made significant investments in enhancing online tour sales for quicker and more convenient access.
The direct distribution channel of the small company lacks stability, primarily relying on a loyal customer base Additionally, the company's limited outreach efforts hinder its ability to attract new customers.
The company implements customer attraction programs in select locations, relying on an indirect distribution policy that groups retail customers, necessitating the use of agents However, high intermediary costs result in low profits and dependency on these agents, whose popularity and presence are limited to a few small, lesser-known points of sale To enhance customer acquisition, the company actively engages collaborators in groups to identify new clients Nevertheless, the current discount rate for affiliates stands at only 30% for travel programs, which is less competitive compared to the 50% offered by other firms To improve collaboration and attract more partners, the company should consider increasing the discount rate Additionally, there is a significant opportunity to target large enterprises, which remain an untapped market for potential customers.
Currently the company's social media pages promote and design visuals and videos that are quite easy to see and attract customers.
High discounts are available on last-minute customer or middleman (point of sale, contributor) tours, which makes the shows sell on the fly.
The form of giving tourism gifts to customers helps Sanna expand the image and leave an impression on customers.
The company's primary promotion strategy relies on its website, but its effectiveness is significantly enhanced when combined with visual advertising methods in various media, including books, newspapers, and leaflets Currently, the exclusive focus on online advertising limits the overall impact of promotional efforts.
The company's advertising strategy remains insufficient, as customer awareness is low Although the website has been updated, the limited number of new tour posts and lackluster visuals fail to attract attention Additionally, the company is not well-represented on social media, and there has been no investment in advertising, which is crucial for product sales To achieve better results, the company must enhance its promotional efforts in the near future.
DIFFICULTIES AND SOLUTIONS
Difficulties
The Vietnam tourism industry is experiencing rapid growth, establishing itself as a vital economic sector that offers numerous opportunities for tourism companies However, despite these advantages, challenges persist within the business environment and among enterprises During my internship at Sanna Tour, it became evident that the entire industry is facing significant hardships, primarily due to the severe losses incurred from the Covid-19 pandemic that began in 2020.
The Vietnamese economy has faced significant challenges, particularly in the tourism sector, which has been severely impacted by flight bans, travel restrictions, and travelers' fears stemming from the Covid-19 pandemic As a result, many hotels, restaurants, and retail outlets in popular tourist destinations have been left empty, leading to a dramatic decline in the tourism industry.
The company is currently grappling with significant challenges, including a sharp decline in tour bookings, a reduction in the number of tourists utilizing its services, a loss of economic revenue, and a prolonged temporary halt in staff operations.
Basis for Building Solutions
5.2.1 The recovery and development of Vietnamese tourism
Vietnam's tourism sector is experiencing significant growth, with a rising number of both international and domestic visitors The country is gaining global recognition, with many local destinations being favored by international tourists As tourism becomes a vital economic sector, contributing substantially to GDP, it has garnered increased attention from society However, the Covid-19 pandemic severely impacted the industry in 2020 Despite these challenges, Vietnam's tourism has shown resilience, actively adapting and working towards recovery in the new landscape.
The Vietnamese government successfully managed the COVID-19 pandemic in a short time, impressing the international community With a strong commitment to achieving the dual goal of ensuring epidemic safety and economic recovery, the government prioritized domestic tourism as a key focus In May 2020, they swiftly launched domestic tourism stimulus programs, including the initiative "Vietnamese traveling to Vietnam."
"Vietnam tourism safe , attractive ”in September 2020 has been promoted.
Domestic stimulus programs in Vietnam, designed for both locals and foreign residents, have garnered significant interest from travel companies and tourism businesses nationwide As a result, numerous tourism demand-stimulating partnerships have emerged, offering increasingly attractive prices and enhanced service quality across various regions of the country.
Timely navigation has revitalized domestic tourism, yielding significant positive outcomes In 2020, the number of domestic tourists soared to 56 million, representing nearly 66% of the total domestic tourist figures from 2019.
In 2020, despite the operational challenges posed by the Covid-19 pandemic, Vietnam's tourism sector received numerous international awards and consistently featured in global travel magazines.
In November, Vietnam tourism achieved significant recognition at the World Tourism Awards (WTA), winning multiple categories including "World's Top Heritage Destination" and being hailed as the "Oscar of the World Tourism industry." Additionally, Vietnam was voted as Asia's "Top Cultural Destination," "Heritage Destination," "Culinary Destination," and "Best Golf Destination." In December, Lonely Planet named Vietnam the best culinary destination for a private trip in 2021, praising it as the premier culinary country in East Asia Furthermore, Travel + Leisure magazine ranked Vietnam 16th among the top 20 destinations for personal travel in 2021.
Vietnam boasts a variety of renowned destinations, including Ha Long Bay, Lan Ha Bay, Hang Son Doong, Ninh Binh, Sa Pa, Hanoi, Ho Chi Minh City, Hoa Binh, and Phu Quoc These locations consistently appear in global travel magazines and review sites, making them top recommendations for travelers seeking unique experiences.
In a challenging year for Vietnam's tourism industry, resilience and creativity have emerged as key strengths in navigating difficulties Despite ongoing impacts from the Covid-19 pandemic, lessons learned from last year's challenges provide a solid foundation for Vietnamese tourism to adapt to new and unique obstacles This proactive approach aims to sustain development momentum and reinforce Vietnam's position as a prominent destination in both regional and global tourism.
5.2.2 The recovery and development of Da Nang tourism
By 2021, the tourism industry aims to mobilize resources to recover from the severe impacts of the Covid-19 pandemic, with a target to increase tourist accommodation establishments by 85-86% compared to 2020, anticipating over 5 million arrivals This includes a projected 37-38% rise in international visitors, totaling nearly 970,000 arrivals Additionally, revenue from accommodation and travel services is expected to surge by 85-86% from the previous year, reaching an estimated 8 trillion VND, according to Truong Thi Hong Hanh, Director of the Department of Tourism, during the implementation conference for the 2021 tourism plan held on January 12.
The city actively fosters local connections, boosts tourism demand, and enhances online promotional efforts It also facilitates collaboration among the three regions of Quang Nam, Da Nang, and Thua Thien Hue with Hanoi, while establishing links with Dak Lak.
Da Nang is enhancing its tourism development by collaborating with Quang Ninh province to optimize tourist traffic through the Van Don - Da Nang routes The city has also partnered with Quang Binh, Thua Thien Hue, and Quang Nam to promote tourism at the "Tourism Festival in Ho Chi Minh City," coinciding with the Vietnam Tourism Power Association Conference Additionally, Da Nang and Quang Nam have organized a forum to strengthen tourism ties between the central economic region and major cities like Ho Chi Minh City and Hanoi, focusing on the theme "The Flow of Elite." This initiative includes a signed agreement to implement a tourism stimulus program involving eight southern provinces.
The Department of Tourism launched the "Danang Thank You 2020" program, successfully attracting approximately 1.1 million visitors Additionally, they collaborated with Quang Nam and Thua Thien Hue to promote the initiative "Three Provinces - One Point, Many Experiences," further enhancing the region's tourism appeal.
Year Festival 2021 "with many service packages, travel programs, attractive products to serve tourists.
In 2020, significant investments and upgrades in tourism and service products were initiated by the business community and investors Key infrastructure projects aimed at enhancing tourism were launched, including the expansion of the APEC Garden Project and the development of Da Nang International Airport Notable projects such as the BRG Danang Golf Resort hotel complex, DAP beach resort, An Thuong tourist street, and the first phase of the Bach Dang pedestrian street project have also commenced, contributing to the creation of new tourism offerings.
Da Nang tourism is experiencing a robust recovery and growth, driven by various initiatives aimed at boosting tourism demand Notably, during the recent April 30 to May 1 holiday, the city welcomed 130,000 visitors, signaling a positive trend in the return of tourism to the area.
5.2.3 The recovery and development of Sanna tour
In 2021, the tourism industry experienced a resurgence due to various stimulus programs aimed at attracting domestic travelers, despite significant revenue losses from the absence of international tourists Ms Nguyen Thuy Ngoc Sang highlighted the challenges of 2020, noting a dramatic decline in revenue and a lack of tourists during the Lunar New Year, with bookings only reaching 10% of the previous year However, starting in March 2021, proactive efforts and enticing price reduction programs led to a notable increase in tour bookings, particularly in Danang, where domestic tourists have become the primary visitors, compensating for the decline in foreign tourist numbers.
Some marketing solutions to improve competitive benefits of tourism
Complete the strategy to develop tourism products in the direction of diversification, suitable to the target customer market:
In contrast to previous years, Sanna Travel Company is now focusing on foreign customers, shifting away from its prior emphasis on the domestic market Over the past year, the impact of the epidemic has significantly reduced the number of international tourists, prompting Sanna Tour to concentrate more on domestic travelers To cater to this market, the company is developing unique and appealing travel programs that align with the interests and financial capabilities of its customers.
To effectively meet the diverse needs of various audiences, the company should actively modify its travel program by offering multiple product options at different price points Implementing a strategy focused on product line differentiation will not only enhance customer choice but also foster loyalty among clients.
To effectively develop a tourism product strategy, it is essential to leverage the company's strengths and maintain its identity while continuously researching to create innovative tourism offerings and destinations that captivate travelers Tourists are eager to explore and learn about new experiences, so collaboration with local suppliers to enhance service offerings at tourist sites is crucial Sanna Tour has introduced various programs tailored to its target audience, yet it must focus on establishing a unique appeal in its products to align with the evolving preferences of visitors By enhancing the attractiveness of existing tourism offerings and incorporating fresh elements, the company can better meet the dynamic tastes of its clientele.
- The company should have tourism programs with cultural values, customs, festivals, traditions, and high warm Vietnamese ethnic dishes in each tourist destination.
- The company needs to build tourism programs around the city because this is the most attractive and interesting travel schedule for foreign tourists.
To effectively capitalize on our country's rich and diverse primary forest system, which covers three-quarters of its hilly and mountainous terrain, the company should conduct thorough research and surveys on green and adventure tourism By developing innovative programs in this emerging sector, we can attract both domestic and international visitors seeking unique and engaging experiences.
To meet the diverse needs of tourists throughout the year, Sanna should introduce seasonal products and explore new tour destinations For spring, focus on offerings that highlight temples and pagodas In summer, promote coastal destinations, while autumn should feature unique attractions like Ninh Binh and Ha Long, along with international options in China, Japan, Korea, Australia, Europe, and America.
The company should develop special programs for holidays and national days, such as meaningful gift initiatives for women on International Women's Day (March 8) and romantic honeymoon packages for couples on Valentine's Day Potential destinations for these offerings include Thailand, Malaysia, Singapore, China, Indonesia, Laos, and various locations in Europe.
Germany, Korea, Japan attract customers If this program is successful, it can be considered as a typical product of the business.
Especially with two new projects, photo project and yearbook tour for students, the company needs to promote strongly in the market.
Besides, when building a program for a specific group of visitors, it is necessary to pay attention to:
Understanding the diverse needs of guests is essential, as some delegations may feel overwhelmed by the current program, while others may believe there is too much beauty to fully appreciate.
Understanding the professional characteristics of customers is crucial for businesses By focusing on consumer traits, companies can enhance their offerings through improved programs and additional tours, making their products more appealing This approach not only boosts customer satisfaction but also encourages positive word-of-mouth, helping to attract a wider audience.
To attract tourists effectively, the company must conduct thorough research to identify their needs and explore new tourist destinations, allowing for the creation of unique travel programs By partnering with top-notch service providers who offer quality services at competitive prices, the company can develop appealing packages that attract more visitors.
To enhance tourist satisfaction, it is essential to eliminate outdated programs and refine those that do not meet visitor expectations Once a program gains market acceptance, maintaining its reputation and quality while continuously improving it is crucial for meeting evolving customer needs.
- Improving service quality: To improve and improve service quality, the company should perform the following tasks:
Monitoring guest feedback is essential for identifying dissatisfied customers By addressing their concerns promptly and effectively, businesses can significantly improve customer satisfaction Responding to these customers not only resolves their issues but can also transform 90% of them into loyal patrons of the company.
To enhance service quality and foster a professional work ethic, it is essential to organize training sessions focused on customer service skills for employees These sessions will not only clarify their roles in improving service but also ignite their passion for the job Furthermore, as the company targets a customer market that frequently tours overseas, it is crucial to conduct language skills training to better equip staff for international interactions.
To enhance the quality of tourism programs, companies must hire freelance guides and collaborators when their resources fall short This approach, while challenging to manage, significantly impacts service quality; therefore, it is crucial to create a prioritized list of the best guides for easy selection during delegations Establishing clear policies and quality standards for tour guides is essential, alongside ongoing coordination with the team to understand evolving guest needs Additionally, improving foreign language skills among tour guides is vital to meet the expectations of international visitors.
In addition, the company's market research department must regularly monitor customer profiles and classify customers for the purposes of:
The first: capture the needs of future guests
Second: when there is a new product, the company will base on customer records to send them information about this new product.
Third: the company will send emails or greeting cards to customers on their anniversary or birthdays.
Fourth: for loyal customers, there should be reasonable policies such as discounts, service promotions, holiday gifts …
Price is one of the most important options for customers, and is a big factor in sales volume, and has a strong impact on the company's revenue and profitability.
To enhance customer attraction and boost profits, Sanna Tour should implement a pricing strategy that encourages consumption and extends the product's seasonal appeal Currently, the target audience primarily consists of individuals with average purchasing power.
The pricing of travel programs plays a crucial role in influencing consumer purchasing decisions Sanna employs a principle-based pricing strategy that considers costs and interest percentages Currently, the company's prices are relatively high due to the necessity of outsourcing services like transportation and guidance To remain competitive and attract more visitors, Sanna must implement strategies to reduce prices, which could involve offering discounts on their travel programs.
- Maintaining relationships with tourism product suppliers, selecting service providers with guaranteed quality and low prices.