AN INVESTIGATION INTO THE REAL SITUATION AND SOME SOLUTION TO ATTRACTING TOURISTS TO HUNG LE TRAVEL c o LTD IN THE LOW SEASON

Real situation of marketing activities to attract tourists in the low season of Hung Le Travel C.o.. Some solutions to improve marketing activities to attract tourists in the low season

DEPARTMENT OF ENGLISH LANGUAGES

GRADUATION PAPER

AN INVESTIGATION INTO THE REAL SITUATION AND SOME SOLUTION TO ATTRACTING TOURISTS TO HUNG LE TRAVEL C.O

LTD IN THE LOW SEASON

Da Nang – May 2020

TABLE OF CONTENTS

ACKNOWLEDGEMENT i

PART A: INTRODUCTION 1

1 Rationale 1

2 Aims and objectives 1

2.1 Aims 1

2.2 Objectives 1

2.3 Scope of the study 2

3 Method of the study 2

4 Structure of the study 2

CHAPTER 1: THEORETICAL BACKGROUND 3

PART B: DEVELOPMENT 5

CHAPTER 1: THEORETICAL BACKGROUND 5

1 Overview of marketing and travel marketing 5

1.1 Definition of marketing 5

1.2 Definition of travel marketing 5

2 Factors affecting marketing activities in tourism business 6

2.1 Macro environment 6

2.2 Internal environment 7

2.3 Internal environment inside the company 8

3 Tourism marketing policies 8

3.1 Product policy 9

3.2 Price policy 12

3.3 Distribution policy 13

3.4 Mixed promotion policy 14

CHAPTER 2 : CASE DESCRIPTION 17

1 General information of Hung Le Travel C.o Ltd 17

1.2 Company’development goal 18

1.3 Organization structure of Hung Le Travel C.o Ltd 18

1.3.2 Organization chart 18

1.3.3 Business results of the company in 2018 – 2019 21

2 Factors acttrating tourist in the low season 24

2.1 Product policy 24

2.2 Price policy 27

2.3 Distribution policy 28

2.4 Mixed promotion policy 29

3 Real situation of marketing activities to attract tourists in the low season of Hung Le Travel C.o Ltd 31

CHAPTER 3: ANALYSIS AND EVALUATION 37

1 Objectives and operation direction of Hung Le Travel C.o Ltd 37

1.1 Objectives 37

1.2 Direction 37

2 Some solutions to improve marketing activities to attract tourists in the low season Hung Le Travel C.o Ltd 38

2.1 Completing product policies 38

2.2 Completing the price policy 45

2.3 Completing the distribution policy 48

2.4 Completing promotion - advertising policies 49

3 Some recommendations for the company leadership 54

3.1 Strengthen training and improve working efficiency of employees 54

3.2 Improve partner policies 57

4 Proposals to the state and the tourism industry 58

PART C: CONCLUSION AND SUGGESTIONS 60

REFERENCES 63

COMMENTATOR’S COMMENTS 65

Secondly, I would like to thanks all lectures of Foreign LanguageDepartment at DTU, the silent ferrymen that has loved and taught me everyday.Furthermore,

I have more inspiration in studying all curriculums due to my loved lectures

Thirdly, I always express my deepest gratitude to my darling family Theyhave supported me when I met some troubles in this graduation paper They takescare of me everyday and always encourage me to study hard

Last but not least, I would like to thank my friends, who be with me to dealwith troubles in studying Besides studying, they have held many funny games torelax after studying

I wish all of you have a good health and success!

Best Regards Luong Thi Ngoc Tram

STATEMENT OF AUTHORSHIP

Except where reference is made in the text of the thesis, this thesis contains

no material published elsewhere or extracted in the whole or in part from a thesis bywhich have qualified for or been awarded another degree or diploma

No other person’s work has been used without due acknowledgment in themain text of the thesis

This thesis has not been submitted for the award of any other degree ordiploma in any other tertiary institution

Da Nang, May 2020Luong Thi Ngoc Tram

Some theories about the tourism business, travel services, tourism marketingand travel business performance It includes concepts, definitions and roles intourism marketing and travel industry issues to provide us with an overview of thetourism industry Besides, there are also policy criteria for marketing solutions toattract tourists in low season

We can see the business situation of the company in the last 2 years and themarketing policies to attract domestic tourists of Hung Le Co., Ltd In the last 2years, the Hung has been on a steady development, the growth indicators have nothad a big but very solid growth

Providing a number of solutions to improve the efficiency of marketingactivities to attract domestic tourists at Hung Le Co., Ltd These solutions are based

on your own views and the actual situation at the company In addition, the thesisalso makes a number of recommendations to the company and the state, theVietnam National Administration of Tourism should make to build a fast andsustainable development of Vietnam's tourism business environment in the comingyears

TABLES AND FIGURES

Table 1.3.3 Business summary of Hung Le Travel Co., Ltd from 2017 and 2018Diagram 2.1 Company Organization of Hung Le Travel C.o Ltd

DTU: Duy Tan University

FLD: Foreign Language Department

TD : Transportation Department

HRD: Human Resource Department

FAD: Financial Accounting Department

PART A: INTRODUCTION

1 Rationale

Nowadays, tourism on around the world has become an need in social life.Tourism activities are being strongly developed and becoming an importanteconomic sectors in many countries around the world Tourism has contributed topromoting social progress, efficiency, peace and broadening mutual understandingamong ethnic groups Vietnam is also one of the countries favored by nature for itsbeautiful landscapes, along with the development of a culture that has experiencedthousands of years of history priceless humanities It has turned Vietnam into anattractive tourist destination among domestic and foreign tourists As the demandfor travel is increasing, suppliers are increasing, the guest market is expanding Create conditions for travel businesses and hotels to develop This has led tocompetition among businesses in attracting customers to their businesses Notoutside that general trend, Da Nang's travel business has also made steps andchanges to meet the tourism needs of people with a series of travel businesses However, besides that, the marketing experience is limited in attracting tourists,especially in the low season Hung Le Travel Co., Ltd is not out of the general

trend Therefore, I choose this topic “An investigation into the real situation and some solution to attracting tourists to Hung Le Travel C.O LTD in the low season” for graduation paper.

2 Aims and objectives

2.1 Aims

- Appreciate the real situation with the service quality of Hung Le Travel

C.o Ltd

- Proposing a number of feasible solutions and recommendations to attract

tourist in the low season that can be applied to Hung Le Travel Company tocontribute a small part of my personal opinion to the development of the company

2.2 Objectives

- Systematizing some basic marketing theories to attract tourists.

- Surveying, analyzing and evaluating the current situation of marketing

attraction of Hung Le Travel C.o Ltd in the recent years

- Based on the theoretical basic and overall assessment of the company’s

tourist attraction marketing, propose some solutions and recommendations to therelevant departments to attract tourists in the future

2.3 Scope of the study

- Because there are many methods attract tourists, but I will focus on

marketing to attract tourists in the low season

- Marketing solutions to attract tourist in the low season of Hung Le Travel

C.o Ltd

- Researching marketing activities to attract tourists in the low season of

Hung le Travel C.o Ltd

- The data have been collected from 2019 to 2020.

3 Method of the study

In order to finish the paper, I would like to combine the following methods.Directing observation of activities, tools and channels of communication ofHung Le has been perform

 Method of Collection: data have been collected from books, websites andresearches

 Method of Description: detailed description of company service about threeaspects including quality, quantity and marketing

 Method of Analysis: from data collected, we analyzed the real situation ofHung Le Travel C.o Ltd

 Comparative analysis, comparison with other travel companies

4 Structure of the study

CHAPTER 1: THEORETICAL BACKGROUND

1 Overview of marketing and travel marketing

1.1 Definition of marketing

1.2 Definition of travel marketing

2 Factors affecting marketing activities in tourism business

2.1 Macro environment

2.2 Internal environment

2.3 Internal environment inside the company

3 Tourism marketing policies

3.1 Product policy

3.2 Price policy

3.3 Distribution policy

3.4 Mixed promotion policy

Chapter 2: CASE DESCRIPTION

1 General information of Hung Le Travel C.o Ltd.

1.1 Process of formation and development of the company

1.2 Company’ development goal

1.3 Organization structure of Hung Le Travel C.o Ltd.

1.3.1 Information about departments

1.3.2 Organization chart

1.3.3 Business results of the company in 2018 – 2019

2 Solution attracting tourism in the low season

2.1 Product policy

2.2 Price policy

2.3 Distribution policy

2.4 Mixed promotion policy

3 Evaluation of marketing activities to attract tourists in the low season of Hung Le travel C.o Ltd.

Chapter 3: ANALYSIS AND EVALUATION

1 Objective and operation direction of Hung Le Travel C.o Ltd.

1.1 Objective

1.2 Direction

2 Some solution to improve marketing activities to attract tourist in the low season Hung Le Travel C.o Ltd.

2.1 Completing product policies

2.2 Completing price policy

2.3 Completing the distribution policy

2.4 Completing promotion – advertising policies

3 Some recommendations for the company leadership

3.1 Strengthen training and improve working efficiency of employees 3.2 Improve partner policies

4 Some recommendations for the company leadership

PART B: DEVELOPMENT CHAPTER 1: THEORETICAL BACKGROUND

1 Overview of marketing and travel marketing

1.1 Definition of marketing

- Marketing is not just a function of the business, it is a philosophy that

guides the entire operation of the business in discovering responsiveness andsatisfying customer needs Here are some basic definitions that are commonly used

in the current period: According to Phillip Kotler, Marketing is working with themarket to conduct conversations with the purpose of satisfying the needs anddesires of human It can also be understood that marketing is a form of humanactivities (including organizations) in order to satisfy human needs and desiresthrough reciprocate ”

- According to the marketing association My (American marketing

association -AMA) Marketing is seen as an organizational function and is a processthat includes setting up, creating, communicating and delivering values to managing customers and managing customers in different ways to benefit theorganization and its members

1.2 Definition of travel marketing

- Tourism Marketing Definition of the World Tourism Organization

(UNWTO) Tourism marketing is a management philosophy, whereby tourismorganizations research, predict and select based on the wishes of travelers bringproducts to market in accordance with the desire of the target market, making a lot

of profits for that tourism organization

- Tourism marketing definition of Michael Coltman: Tourism marketing is a

system of research and planning to create a tourism management philosophycomplete with appropriate strategies and tactics to achieve purpose

- JC Hollway's tourism marketing definition: Tourism marketing is a

management function that organizes and guides all business activities involved inrecognizing consumer needs and transforming purchasing power of customers As

a result, the company will need to meet the specific needs of a specific product orservice, deliver the product or service to the final consumer to achieve the targeted

or targeted profit of the business or tourism organization This tourism marketingdefinition has three important points

- Tourism marketing is a method and technique supported by a special and

methodical spirit to satisfy customers' unspoken needs which may be forentertainment or other purposes including: household chores, business andeducation

- We can define tourism marketing as follows:

- Tourism marketing is conducting research, analyzing customer needs, travel

products and services, and providing and supporting ways to bring customersproducts to satisfy their needs and achieve organizational goals

- As a research and analysis process:

+ Customers' needs

+ Travel products and services

+ Organizational product supply and support methods

- To bring customers to the product to:

+ Satisfying the needs of the guests

+ Achieving the goals of the organization (profit)

(Travel products are far from customers and fixed, so the suppliers of the calendarmust find a way to bring customers to the product.)

2 Factors affecting marketing activities in tourism business

Marketing activities that attract customers' success or failure are mostinfluenced by environmental factors Which is divided into 3 main environments:the macro environment, the internal environment (also called the industryenvironment), the internal environment of the company

2.1 Macro environment

- The environment in which the company seeks opportunities and the

emerging threats that impact its development business This is a factor that thecompany cannot control and control, which forces the company to monitor andadapt to it, specifically including factors such as:

+ Population environment: size and rate of population growth, distribution ofage and ethnic structure, education level, household model…

+ Economic environment: these are economic factors, the most importantfactors affecting consumers' purchasing power such as income, price, savings,consumption index, and inflation index, broadcast…

+ Technology environment: this is a place that can create profits as well ascause difficulties for production and business activities of the company Therefore,the company needs to monitor technology development trends, adapt and masternew technologies to better serve and to improve business efficiency

+ Political environment: including elements such as the legal system, lawenforcement apparatus…

+ Cultural environment: Marketing needs to pay attention to the change ofculture so that it can predict new marketing opportunities and threats

+ Natural environment: including factors such as landscape, level ofenvironmental pollution, weather conditions

2.2 Internal environment

Tourism business is influenced by the behavior of suppliers, competitors ofmarketing intermediaries, the public and customers These are also factors that thecompany can hardly control Specifically include the following factors:

- Competitors: Understanding the competitive situation and competitors is

extremely important to be able to build up effective marketing solutions

- Suppliers: The change from the supplier side greatly affects tourism

companies, so it is important for the company to capture important information inorder to anticipate difficulties and options to keep up Variable response times

- Marketing intermediaries: These are service organizations, tour operators,

hotels and transportation companies…These factors are very important in findingcustomers and selling products and services to the company

- Direct public: Activities of tourism companies are surrounded and

influenced by a series of public organizations To be successful a company mustregularly analyze, classify and establish public relations with each of the directpublic groups

- Customers: Includes past customers, current customers and potential

customers Marketers need to study their desires, perceptions, preferences andshopping behaviors

2.3 Internal environment inside the company

The company's internal environmental factors greatly influence the company'smarketing efforts Perhaps these factors are:

- Financial capacity: this is an important factor for business activities in

general and tourist attraction activities in particular of a travel company because it isdecided for the marketing bank

- Physical facilities, technology: this element contributes an important part in

creating service quality and improving the business efficiency of the company

- Human resources: this is a very important factor that not only directly

affects the quality of service, but also makes a hard-to-first difference forcompetitors

- The next factor is the management and organization level of all parts of the

corporation, which directly affects the service provision and the ability to satisfy thecompany's customers

- The final factor is the level of marketing activity that determines the

business performance of the company It ensures to meet guests' needs and desires

3 Tourism marketing policies

To increase the attraction of tourists in the low season to the company inaddition to measures in management and organizational structure…Marketing

solutions play an indispensable role for any company, marketing helps businesseshave a panoramic view of the market that businesses are changing and ways toattract customers Come to the business Marketing policies play an important role

in creating the desired position and contributing to improving the quality andsatisfaction of target customers In order to do that, the company needs to havemarketing policies such as product policy, price, distribution, mixed promotion,people, at the same time creating package products and programming, besides that.Partnership policies with other businesses are needed We will go into each specificmarketing policy to better understand the roles as well as the purpose of thesemarketing policies to help tour operators in improving the efficiency of attractingtourists

3.1 Product policy

Some concepts

Products from the marketing point of view are all elements that can meet theneeds and desires of customers, benefit them, and can be offered for sale in themarket It consists of two elements that are physical and non-physical Such as, theproduct is understood to mean all goods and services that can be offered for sale andare capable of satisfying a person's need or desire, drawing attention, stimulatingshopping and consumption

Tourism products are both a specific product and a non-specific product Inother words, tourism products are a combination of different elements in order toprovide guests with a complete travel experience and satisfaction The productpolicy is understood as the overall rules governing the creation and launch ofproducts into the market to satisfy the needs of the market and the tastes ofcustomers in each business period of the business to ensure effective business

Or is it the policy of enterprises to limit, maintain, develop and expand theproduct structure innovation in order to timely meet the needs of the market withefficiency suitable to the life cycle stages of the product The product policy is thelifeblood of a business strategy if this policy is not right, that is, to market the type

of tourism products that do not match the needs and tastes of customers, regardless

of the marketing policy No matter how tempting it is

Tourism products are tourism programs, accommodation and cateringservices…So the characteristic of tourism products is to use it to know Travelproducts must be sold to customers before they consume them and see them Socustomers need to be thorough information about everything they will buy, willuse…Therefore a cumulative experience is required On the other hand, tourismproducts can not be stored and cannot be produced beforehand, so the regulation ofsupply and demand is very difficult

Therefore, the company needs to develop a policy in accordance with thefollowing:

 Product catalog policy

Today businesses do not trade a single product but usually consist of manydifferent products and services gathered into a mixture of products For businessesdoing business in the field of tourism to meet the needs of customers, a diverseproduct mix is required The diversification of services is assessed through thelength, width, depth and uniformity of the product portfolio List of products is acollection of groups of products and services that specific goods units offer to offer

to customers Different products and services of the company's product portfoliointeract with each other in the sense of self-competition, but also complement eachother, so determining the size of the product portfolio is an important contentimportance of product policy

Types of products and services are closely related by the same function or byselling to the same group of customers, or through the same type of commercialorganization or within the framework of a price range Businesses can expand ornarrow their products are available on the market depending on the level ofcompetition or consumer needs of customers Product portfolio width: is the totalnumber of services included in the company's product portfolio Length of productportfolio: is the number of different products in the same category but at different

quality levels Homogeneity: reflecting the closeness and harmony of goods ofdifferent categories according to the end-use angle or requirements of productionorganization, distribution channels or targets certain standards Defining productportfolio is deciding its basic parameters to satisfy customers' needs and wants.

Deciding to extend the product category:

A business can extend a product category by extending products in thecategory or adding new products within its current range

Stretching to the bottom: Companies add lower-end, cheaper products toattract customers The company stretched its product portfolio to the bottom,possibly because a competitor attacked at the top, so decided to counterattack at thelower end, the growth at the top was slower than the bottom, the company wantedadd more products at the bottom end to cover the market gaps

Stretching upwards: Companies that cater to the guest market are able toafford mid- or low-end considering taking into account the more affordable guestmarket, due to the attractiveness of the higher growth or for other reasons

Stretching out on both sides: Companies that can target the middle of themarket can extend their products and services on both sides The decision canextend the category of products and services to help the company reach and attractmore customers

Researching and develop new products

New products can be brand new, improved products, improved products andnew brands that the company developed through its own research efforts And inorder to develop new products, companies need to go through the following steps:

 Forming ideas

 Selecting ideas

 Drafting and appraising projects

 Drafting marketing strategies for new products

 Designing new products

 Market-testing

 Commercializing

The research and creation of new products needed besides it brings high risksfor the company because of the high failure rate and high cost Therefore, whendeveloping a new product, the company needs to strictly follow the steps to create anew product and bring it to market Because the needs of customers are constantlychanging with the advancement of science and technology and the fiercecompetition in the market, each product has its own life cycle, so it needs to beimproved and changed to replace outdated products

3.2 Price policy

Price has a great influence on sales volume and profits of the company Price

is a specific factor in marketing, price is also the basis for customers to choose theirtrip Price decisions affect all participants in the marketing channel (customers,competitors, distributors) so the company needs a flexible and reasonable pricingpolicy to attract customers

- Pricing goals

Maximize profits: Often posed to companies with large reputations, goodservice quality, and often higher than the average level of similar companies

Dominate the market: The first stage of market penetration the company needs

a secure foothold So the company chose a solution that is equal to or lower thanthe average to reach the market, to attract the attention of customers However, thatprice will change to ensure long-term profit for the company

Leading quality: For companies cheats quality and their services to the level ofprofessionalism or unique features, the price is often very high

Target survival: Regression companies will choose for themselves the pricing

to ensure existence As a result, prices are often much lower than normal levels andmaintain for a very short time

Valuation methods: Determination by adding up costs, pricing on targetprofits, valuing values, pricing at current prices

3.3 Distribution policy

Distribution is about giving consumers the products that they need at the righttime, time, quality, category and desire In other words, it is the way to show themeasures and tricks to bring products and services to end customers to ensure thecivilized service element

In a general view, a distribution channel is a collection of businesses orindividuals that are independent or interdependent, participating in the process ofbringing goods from producers to consumers The system of tourism distributionchannels is a collection of suppliers or individuals engaged in activities to bringcustomers to tourism products or provide information about tourism products toguests goods The process of bringing travel products created to customers iscalled product distribution The decisions associated with that process are productdistribution strategies

Basis for building and selecting distribution channels:

 Visitor location

 Customer characteristics

 Characteristics of products and services

 Types of intermediaries

 Based on the competitive situation in the market

 Based on the characteristics of the company

From the above bases select the distribution channel Distribution network intravel includes two main types of distribution: direct distribution, indirectdistribution

Direct distribution: Producers => Consumers

Indirect distribution: Producers => Intermediaries => Consumers

In the tourism distribution system, there are 3 main distribution channels:

 Tourism companies

 Tourist offices or travel agents

 Specialized companies

In addition, business travel businesses can also sell goods through many otherforms such as catalogs, mail, phone, fax, online

Management of distribution channels

 Selection of channel members

 Discount policy

 Conflict management

 Management of the practical effectiveness of channel members

 Modification of distribution channels

3.4 Mixed promotion policy

Includes promotion - advertising policies

Promotion: is a special and purposeful area of marketing activities that isdirected at offering, pitching and establishing the most favorable relationshipbetween the company and its customers and a set of potential customers The point

is to coordinate the dynamic implementation of the company's chosen marketingstrategy and program The promotion aims to bring the company's information tocustomers through communication tools to stimulate customers' needs to buyproducts and services, creating conditions for customers to freely choose productsconsumption, creating favorable conditions for tourism products to be consumedmany times, thus contributing to product improvement

Steps of the mixed promotion process

To plan for promotion, there are 4 steps:

 Identify target markets

 Establish communication relationships

 Review and select promotion options

 Set promotion time

The promotion must be timely and appropriate, after fixing it, the print designand selection of other combined tools…We need to know if our communicationresults are effective or not If you want to know this, you should compare it to thetarget market.

Some key promotion tools:

Advertising: is a form of promotion to introduce ideas products, non-personalgoods and services paid by a company

Promotion: the application of a form of discount for a short time to increasethe ability to sell

Direct marketing: is a form of promotion without intermediaries andconducting marketing activities through direct contact between customers andemployees of the company

Also follow M Belch and A Belch and Philip Kotler add the Internet,integrated media and Philip Kotler adds direct marketing

In tourism, the combined promotion tools include 6 main tools:

 Advertising

 Sales promotion

 Public relations propaganda

 Direct marketing

 Direct sales / personal sales

 Integrated Internet / Tradition

Advertising is a way of survival and development that any business will apply

in the course of their business activities In order to achieve success, the advertisingprocess should pay attention to; What is the purpose, to introduce or advertisewhich products will be marketed The content of the advertising program ispresented including what, for whom, where to advertise where appropriate, how toadvertise and just how much the activity should be

Advertising aims to:

 Introduce about the product

 Give the information

 Reminder

 Impress

 Convince

 Advocate

The advertising content must be plentiful, ensuring the following points:

 Must highlight the advantages of the product

 Consistency between words and deeds

 Must be clear, easy to understand, easy to remember, impress

 Must make lazy clear promises

 Confirmation of quality quality of products

 Being public and high goals

 Tone, images, colors must be eye-catching, information provided must beeasy to remember

The advertising process consists of the following steps:

 Determining which advertising targets to target and what the target market is

 Determine the budget for advertising activities in a specific and clearmanner

 Select the content and advertising media accordingly and bring highefficiency

When choosing the means of advertising, pay attention to the different forms

of advertising such as newspapers, television, websites, outdoor advertising or inthe form of brochures and brochures about the product From there, we can choose asuitable and effective means of advertising

Each type of advertising is aimed at a specific audience so they will havedifferent effects and costs To achieve high efficiency, it is necessary to choose one

or two different means of advertising to stimulate consumers after findinginformation about the product through distribution channels that will need to buythat product immediately

CHAPTER 2 : CASE DESCRIPTION

1 General information of Hung Le Travel C.o Ltd.

1.1 Process of formation and development of the company

Hung Le Travel Co.,Ltd was established on September 15th, 2017 under thelicense No 45611211379 issued by the Tax Deparment of Hoi An City

Hung Le Travel Co.,Ltd is a young medium – sized enterprise, having legalstatus, is allowed to open an account at a bank, use its own seal and operate inaccordance with current regulations of State

Company name: Hung Le Travel Co.,Ltd

CEO: Nguyen Ngoc Vinh

Address: 07 Tran Quoc Toan, Hoi An, Quang Nam

1.2 Company’development goal

It want to promote the image of the Vietnamese people in Quang Nam and DaNang through the form of Vietnamese girls wearing Ao Dai traditional and carryingtourists to visit and try specialties in Vietnam in general and in Quang Nam and DaNang in particular

The company often cooperates with advertising companies, travel services toexpand the scope of tourism as well as expand the source of potential customers.With a team of well trained human resources, professional, dynamic,enthusiastic, friendly service; The company offers many attactive preferential tourprograms, ready to meet the needs and the highest satisfaction of customers andparners when coming to the company during their trip Customers and partners havecooperated for a long time with Hung Le Travel

1.3 Organization structure of Hung Le Travel C.o Ltd.

1.3.1 Information about departments

- Mr Nguyen Ngoc Vinh (CEO)

- Mr Le Xuan Hung ( Debuty Director)

- Mr Nguyen Van Lam (Operator Department)

- Ms Tran Thi Hong ( Financial Accounting Department)

- Tour guide: Truong Hien, Nguyen Nhi, Luong Tram

1.3.2 Organization chart

OD

CEO

FAD Debuty Director

Diagram 1.3.2 Company Organization of Hung Le Travel C.o.Ltd

Tour guide

Functions and duties of each department

CEO:

- Having the highest position in the company and playing the most important

role in managing all activities of the company

- The director represents the company to sign transaction contracts,

cooperation documents as well as fulfill all obligations to the state agencies

- Always have work development plans, consider and appoint the

appropriate positions to be able to perform all tasks most effectively

Debuty Director:

- Assist the director in running all activities of the employees in the company.

Acting on behalf of the director to establish relationships with partners as well assign labor contracts

- The person directly determining the price of the tour sold.

Operator Department:

- Grasping transport airport services: price, departure time, airport, station,

destination and other customer support services of all popular transport including:aircraft, ships fire, ships, speedboats, vehicles, or watercraft

- Capture accommodation: including restaurant and hotel systems in all

regions of the country The operator must always know the current price, thegeneral provisions of each place so that the tour design department can follow theappropriate services Hotels are classified from 1 to 5 stars And the restaurantsystem is also classified by popular to high-class or based on the composition oftourists are Vietnamese or foreigners to be able to choose the appropriate restaurantaccording to each style, European Restaurant, Restaurant Asian, )

- In addition, the executive department is also very active to the preferential

regime from time to time for customers and is always updated with the latestinformation related to the rights of travel businesses The executive staff also has afree consultation function for customers when doing Visa procedures, ensuring the

work of Passport or extending the stay for overseas Vietnamese and internationalguests.

Financial Accounting Department:

- Having the task of financial planning in accordance with the text.

Conducting transaction relations with the tax authorities and understanding thebanking system

- Monitor and reflect on the use of capital and assets of the company and

promptly reflect changes so that superiors can take measures to resolve

Tour guides:

- Being the representative face of the company, on behalf of the company

directly implementing the program and commitments to customers

- Carry out the design and survey process after receiving customer

information from the executive staff, mainly as the information: Where is thecustomer? How many are the composition, caste and religion? Where do they want

to go? What are their requirements?

- At the present time the company still lacks guides The company is still

planning to recruit more guides

Main business activities:

- Tour Danang Foodie & Sightseeing By Night

- Tour Danang Sights & Discovery

- Tour Danang Foods Explore

- Tour Danang By Night & Han River Cruise

1.3.3 Business results of the company in 2018 – 2019

Although Hung Le Travel has not been in operation for a long time inVietnam's tourism industry, compared to the common ground of tourism in DaNang , it is one of the experienced tour operators and great reputation Therefore,the company has a relatively favorable business environment alongside its

competitors This is evidenced by the company's business results in the last twoyears:

Table 1.3.3 Business summary of Hung Le Travel Co., Ltd from 2017 and 2018

Through the report of the company's business results in 2 years, we canevaluate the performance of the company as follows: Revenue: total revenue in

2017 reached VND 3.055.500 and in 2018 reached VND 3.449.200 Thus, in 2018,the company's revenue increased compared to 2017 of VND 393.700 (equivalent to12.8%) The increase in business results was due to the company's reasonablemarketing policies along with proper investment in the company's executives,tourguides and employees who are good at construction Policies to help thecompany maintain its traditional customer market and attract new customermarkets, strengthen customer confidence, thereby attracting more customers to thecompany, helping the company's revenue

Specifically, the revenue of each field such as the company's selected packagetour revenue from 2017 to 2018 increased significantly by 17% (equivalent to370,000 VND) thanks to this number, we can see the revenue in two years This isrelatively stable with new revenue so in general, compared with other travelbusinesses in Da Nang, this number is not too large, but it is enough to know thatthe company is one day rising, developing more than expected An open future ofthe company The company's transportation revenue increased sharply by 8.5%(equivalent to 18.000 VND) for two years because the company has found a goodand cheap shipping service provider good quality with a new, modern, safe cartravel system along with a team of experienced and enthusiastic car drivers andguides who are happy to work responsibly with the profession The revenue fromthe company's air ticket commission increased by 12.5% (equivalent to 1.900 VND)

in the years 2017 to 2018, in addition to the revenue from services In addition,revenue from guest services also increased significantly with the number 7, 5%(equivalent to 3.800 VND) In general, the total revenue of the company in the twoyears 2017 to 2018 increased by 12.8% (equivalent to 393.700 VND) with highresults, which is the motivation to help the leaders and employees in the company tomake more efforts Moreover, in whole-hearted dedication and building thecompany a further development in the future

Regarding the cost of the company due to the increase in the number ofvisitors to the company's tours in 2018 compared to 2017, so the cost of tours in

2018 also increased by 2017, by 8.5% (equivalent to 193.000 VND) 2017 transfercost was 128.000 VND and 2018 is 140.000 VNĐ so in two years increased by9.3% (equivalent to 12.000 VND) Other expenses increased insignificantly in twoyears by 7.7% (equivalent to 20.000 VND)

Regarding profit: the profit after tax of the company in 2017 reached 324.230VND by 2018, the number has increased to 433.970 increase compared to 2017 is109.740 (equivalent to 34%) to get such high profit results because of the efforts ofall leaders, employees in the public, the business policies applied properly andreasonably This is a praiseworthy sign and also a harbinger of the growth andprosperity of the company

2 Factors acttrating tourist in the low season

2.1 Product policy

At present, Hung Le Travel C.o Ltd has been building a relatively diverseproduct system and a flexible product policy The company currently has domestictourism programs that take all Vietnamese citizens to travel, visit the whole ofVietnam and the program to bring Vietnamese national tourists to foreign countriessuch as countries in Southeast Asia Along with travel programs, the company alsohas gift travel products, which make the company's products more attractive andrich Along with a diversified and diversified product system suitable for eachaudience and a flexible product policy, is the focus on in-depth investment in thecompany's facilities and technical systems to date more and more complete theproduct system of company

Some current tourism programs the company is putting into service for touristssuch as:

- Sea travel program

- Eco-tourism program

- Experiential learning tour program

- Promotion spring travel program

In addition to tourism products, the company is currently focusing onexploiting other intermediary brokers This type of service is still new to thecompany, but the company is always interested in maintaining and developing theseservices because it is essential for the synchronous development of the company.Hung Le C.o.Ltd is ready to serve individual services at the request of customers.Including some of the following services: Travel advice: when customers havequestions about travel-related issues, the on-site staff can be reached by phone or inperson for advice customer Questions from guests like:

- Price of the tour

- Additional services, meals and accommodation

- Company promotions are applied

- Highlights of the tour

- Visa, household activities screenings, seminars and conferences

- Air ticket agency, tourist car rental

When receiving questions from tourists about an attraction or an unclear issue,company employees always listen and enthusiastically answer questions about theabove issues When customers have demand for activities such as visa, passport…The company will contact its partners to meet the needs of its customers, helping tomake travel quick and uninterrupted This is also an optimal way for the company

to receive a percentage of commissions from these partners In different markets,the company applies appropriate flexible product policy The company's maincustomer market is students who belong to the group of people who require usingthe service normally and have a cheerful and sociable personality The company'sproducts are focused on ensuring a good service quality, streamlined, programquality, good tour guide quality with a broad history of knowledge to meet theneeds of the customer market They are the customers who want to travel for a

short time, so they ask that the tourist program points they like in addition tohistorical sites, they like busy and fun places travel programs for students, students

to learn and experience, create skills In addition, safety requirements need to bepaid attention In addition, the tourism program is built based on the requirements

of customers as places for their study The company's travel programs are favored

by this market, such as those traveling by car into historical attractions for practicalstudy, as well as vibrant and vibrant places such as summer tours to the sea such as:Hoi An, Hue…The tour has points of historical and cultural relics: Ngu Hanh Son.For the guest market are officials and employees of the administrative andnon-business sector with average and relatively fastidious income Product policyfor this customer service quality reasonable price Tours of the Central HeritageRoad are particularly popular with this group of customers or festive tours such asBai Dinh - Phu Giay - Tran Temple - Dong Bang Temple, Mau Tay Thien - ZenMonastery - Hai Ba Trung, Phu Tay Ho - Tran Quoc - Quan Thanh - Nguyen PhiTemple Y Lan, Dau Pagoda - But Thap - Chua Kho - Do Temple, Huong Pagoda -Duc Thanh - Bai Dinh - Tran Temple…

In the visitor market, there are officials and employees of the stateadministrative sector who have high service requirements The company's productsare focused on ensuring a good service quality, streamlined, program quality, and agood quality of guides to meet the requirements of the guest market They are theobject of the customer who needs to travel quite a long time, so they require theprogram to be both healthy and not boring because the points in the program aresimilar or less attractive In addition, safety requirements need to be paid attention

In addition, the tourism program is built based on customer requirements Thecompany's travel programs are favored by this market, such as programs on flights

to Central and Ho Chi Minh City, combined with travel and official duty, HP - TPtours HCM - Phu Quoc, HP tour - Hanoi - Hue - Hoi An Tours by car, some ecotours such as HP - Lao Cai - Sapa, HP – Laos

Regarding tourism products of the company, the company always focuses onthe quality management of products, creating the most perfect product to meet theneeds of customers and the company's goals The company is constantly creatingnew products that appeal to current trends to help travelers have new experiences toattract more customers.

2.2 Price policy

Determining the price of your product is extremely important as price is one ofthe most frequently used criteria in product purchase decisions so it has a greatimpact on the number of programs sold in the market The goal of the pricing policy

is how to sell multiple tours that make a profit for the company When researchingand offering appropriate prices, the company had to take into account many difficultand favorable factors that brought the company Price is a very sensitive elementthat is a double-edged sword, when the company applies a low price, the average-income people will be able to buy the company's travel programs but the income ofthe company for this customer is not high

In addition, these customers have low income so they often do not haveadditional services when participating in the program When the company applies ahigh price, the middle-income people will not be able to buy the tour of thecompany and visitors to the company are only high-income customers meaning thequality of the program This customer requires high and profits bring high companybut the number of visitors is very limited Therefore, it is difficult to choose areasonable price, because if you focus too much on attracting high-payingcustomers, the company will lose the middle-income customer market Focusing onthe market of middle-income customers will likely affect those who are likely topay only because they want to take a trip worth the money they spend Therefore,

in order to attract the attention of both customers, the program design departmentneeds to set a reasonable price without affecting the quality of the program

Grasping the psychology of Vietnamese tourists, the price building division ofthe Hung Le Travel C.o Ltd has set a reasonable price for each type of customer,helping customers to be satisfied in terms of price as the service quality.

In addition, the company also has incentive policies for customers who areloyal, long-term customers of the company and those traveling with dynamicnumbers The promotions are also applied by the company with the big festiveseasons of the year to give visitors the opportunity to travel more Thisencouragement is aimed at retaining patrons and attracting new guests The price ofthe travel program is also encouraged in the direction of the package tour, which ischeaper than partial services, ensuring that it still attracts customers to follow thepartial service At the same time the company opened more flexible policies foreach different guests Besides, the company always tries to provide customers withgood services, meeting the high demand of visitors to buy products, whether at highprices or low prices Sometimes to strengthen the relationship and create acompany's reputation in the market the company accepts at a breakeven price inboth traditional and potential markets

2.3 Distribution policy

This is the most effective form of attracting customers in the travel business,companies need to let customers know about the company and its products.Thereby also collect information about the market to capture the needs ofcustomers There are many distribution methods and different distributionchannels Hung Le Travel has used various forms of distribution such as directdistribution, indirect, different retail very flexible to distribute its products Andbefore launching new products to the market, the company often has many methods

of advertising such as on websites, on folding episodes and so far, direct marketinghas brought the most practical effect to the company, at a very low cost, can providedomestic tours to its users Before the main seasons such as cruises, festivals, thecompany designed folding brochures, brochuer to introduce tourism programs