Keywords: Marketing, CAGE model, Hotel, Resort, China, Vietnam, Halong Bay,Strategy, Nha Trang, Hongkong, the Distance Model, Culture, Geography, Economy,... Introduction Hotel service i
Trang 1CHIẾN LƯỢC MARKETING: CUNG CẤP DỊCH VỤ KHÁCH SẠN HẠNG
SANG CHO DOANH NHÂN TRUNG QUỐC
in detail and in general on the importance of cultural, multicultural issues, similarities anddifferences among cultures, and their influence on a hotel’s or a resort’s success or failureparticularly, and on businesses operating in multi-cultural environments generally
The project outline is structured based on a marketing strategy, stage by stage, from thegeneral context of reality; the direction of building a new strategy to keep pace withenvironmental changes; to the step of analysing the environment and the market in hotelindustry, building strategies for each divisions of a consolidated strategy and itsimplementation and management Marketing theories, cultural management, marketingmanagement will be appropriately applied to the every stage of the project as thefoundation for the analysis of factors affecting hotel & luxurious resort servicesthroughout the project In addition, the project uses CAGE model to guide the analysises
of differences of culture, administration, geography, and economy between Vietnam andChina, through which the results obtained will allow an effective marketing strategy to bebuilt, facilitating the company’s success in the future
Keywords: Marketing, CAGE model, Hotel, Resort, China, Vietnam, Halong Bay,Strategy, Nha Trang, Hongkong, the Distance Model, Culture, Geography, Economy,
Trang 2Administration, ASEAN, Integrated marketing communication, Marketing mix,marketing, distribution, services, tourism, price
I Introduction
Hotel service in the market segments for upper customers is always implied greatpotential benefits in the world’s tourism industry Hotel and tourism services, especiallyluxurious hotels, are the product type which is elastic at the highest levels, to absolutelymeet different needs and demands of its customers Currently, all of us are integratingwith the world deeply and widely This process creates the constant stream of peoplemoving from countries to countries, with different purposes A recent report by the WorldTourism Organisation (in Jan 2011) revealed that as of 2010, the number of people visitother countries in the world reaches 935 million people, almost double the figure of 528million people in 1995 These are impressive numbers for the hotel industry where themarket grow fast and steadily in the past years
However, the increase of customers from many countries requires hotels to havemanagers who can make changes in their strategic activities so as to satisfy the foreignguests Vietnam and China are known neighboring countries, sharing their borders both
on the sea and sky The booming Chinese economy in recent decades has transformedthis country the one with the second highest GDP in the world, only after the UnitedStates The rich and middle class in this country are also enlarged In addition, sinceVietnam and China are close together, the total import and export amount between thetwo countries in the first six months in 2011 reached $15.699 million The economic,cultural, and social exchanges are very deep Therefore, the hotel sector should haveappropriate strategies in using marketing tools to attract a large number of thesecustomers Then to be most effective, there’s a need to know about these existing
Trang 3differences between the two countries, to have clear plans to make them faded Marketingstrategies for the service of luxurious hotel, which are set in this context to be developedand adjusted so that they are suitable for different functions of a hotel business, is themain topic to be discussed in the next sections.
The building of a business strategy on the new market, in the new culture – China – needs
to be based on the analysis of the differences between the two countries Therefore, thehotel senior management team has employed CAGE model as an analytical tool in steps
of creating the marketing strategy, including analysis step, selection and planconstruction step, plan implementation and management step, and the final step ofevaluating the plan implementation and forecasting future opportunities and challengesfor the hotel
II Overview of Tourism and Hotel Services
As an internationally traded service, inbound tourism has become one of the world’smajor trade categories The overall export income generated by inbound tourism,including passenger transport, exceeded US$ 1 trillion in 2010, or close to US$ 3 billion
a day Tourism exports account for as much as 30% of the world’s exports of commercialservices and 6% of overall exports of goods and services Globally, as an export category,tourism ranks fourth after fuels, chemicals and automotive products For manydeveloping countries it is one of the main sources of foreign exchange income and thenumber one export category, creating much needed employment and opportunities fordevelopment
In 2010, world tourism recovered more strongly than expected from the shock it suffered
in late 2008 and 2009 as a result of the global financial crisis and economic recession.Worldwide, international tourist arrivals reached 940 million in 2010, up 6.6% over theprevious year The vast majority of destinations reported positive and often double-digitincreases, sufficient to offset losses or bring them close to this target Recovery came at
Trang 4different speeds – much faster in most emerging economies (+8%) and slower in mostadvanced ones (+5%)
Asia and the Pacific (+13%) was the first region to recover and among the strongestgrowing regions in 2010 Africa maintained growth (+7%) and the Middle East returned
to double digit growth (+14%) While the Americas rebounded (+6%) from the decline in
2009, Europe’s (+3%) recovery was slower than in other regions
Most travel by air and for the purpose of leisure
In 2010, travel for leisure, recreation and holidays accounted for just over half of allinternational tourist arrivals (51% or 480 million arrivals) Some 15% of internationaltourists reported travelling for business and professional purposes and another 27%travelled for other purposes, such as visiting friends and relatives (VFR), religiousreasons and pilgrimages, health treatment, etc The purpose of visit for the remaining 7%
of arrivals was not specified
Slightly over half of travellers arrived at their destination by air transport (51%) in 2010,while the remainder travelled over the surface (49%) – whether by road (41%), rail (2%),
Trang 5or over water (6%) Over time, the trend has been for air transport to grow at a faster pacethan surface transport, so the share of air transport is gradually increasing.
For hotel service industry, economic recession means serious problem Hotel serviceslive on the people travelling Only people who are way from their homes for a certaintime need a hotel Meanwhile, the economic recession tend to restrict movement ofpeople Obviously, when their income decreases, the more they travel, the more quicklytheir money goes away in this hard time Hotel services can not be the exception for a sadending However, the senior travelers market is not affected much by these factors Manyreseach results have shown that the luxury travel market follows the trends of otherluxury items Not only luxury travel is distinguished by the unique, brand reputation,along with unreasonably high prices, the basic characteristics of the luxury products, butall of them are affected by the same trends In summary, the economic downturn maycause a loss of billions of billionaires overnight, but it doesn’t mean that he will not buyluxury products Thus, luxury travel is expected to still develop, especifically, the number
of wealthy customers in the newly emerging economies such as China or India willincrease
2 The Trends of International Tourism Market
Trang 6• As a reflection of the economic conditions, recovery was particularly strong inemerging economies, where arrivals grew faster (+8%) than in advanced ones (+5%).
Current developments and outlook:
• According to the April 2011 Interim Update of the UNWTO World Tourism Barometer,International tourist arrivals grew by close to 5% during the first two months of 2011,consolidating the rebound registered in 2010
• According to the forecast prepared by UNWTO at the beginning of the year,international tourist arrivals are projected to increase in 2011 by 4% to 5% The impact ofdevelopments in North Africa and the Middle East, as well as the devastating earthquakeand tsunami that hit Japan in March, are not expected to substantially affect this overallforecast
Long-term trend:
• Over the past six decades, tourism has experienced continued expansion anddiversification becoming one of the largest and fastest growing economic sectors in theworld Many new destinations have emerged alongside the traditional ones of Europe andNorth America
• In spite of occasional shocks, international tourist arrivals have shown virtuallyuninterrupted growth: from 25 million in 1950, to 277 million in 1980, to 435 million in
1990, to 675 million in 2000, and the current 940 million
Trang 7• As growth has been particularly fast in the world’s emerging regions, the share ininternational tourist arrivals received by emerging and developing economies has steadilyrisen, from 31% in 1990 to 47% in 2010.
III Analysis of Internal and External Hotel - Resort Environment
1 The Internal Environment
Analysing TRH internal environment is to help managers have a more completeperspective on its operation strengths and weaknesses, through which they are enable totake appropriate operation methods The strengths and weaknesses may be intangible ortangible elements that may affect TRH operation and be listed in the table below
The strengths and weaknesses of TRH
Tangible:
- Located on a prime location - an
island in the middle of Halong Bay
- Located in the area bordering China
- Provides 4-star hotel and villas
- Spa services, Chinese restaurants, bars
- Theme parks: beaches, aqua dance
stages, ghost house, animal circus
club, golf courses, 18-hole golf
course (on project)
Port of passenger ships, Tuan Chau
-Cat Ba ferries, cruises
- Park with models of the world’s
wonders
Tangible:
- Far away from the airport, thenearest international airport is NoiBai, 150 kms
- Facilities (4 stars) has not reachedthe level of luxury
Trang 8- Good at foreign language, especially
Chinese
- Located at Ha Long Bay, one of the
world’s new 7 wonders of natures
2 External Environment
2.1 Political Envirornment
From 1975 till now, except for the time of diplomatic isolation and economic embargobecause of the issue with Cambodia, Vietnamese social generally quite stable andpeaceful Difficult issues like religion, race, or sovereignty sometimes rose (The Thuong
in Tay Nguyen, Catholism, territorial disputes with several countries in the region) are allsmall in size and have not yet affected Vietnamese society Today, Vietnam society isconsidered peaceful and stable, and in good relationships with many great nations in theregion and globally
In addition, political relations between Vietnam and China could also be consideredstable when the two authorities share a common ideology However, there are now twomain problems in the relationship between the two countries which can strongly affect itsfuture Firstly, it is the South China Sea disputes between some countries in the area, inwhich Vietnam and China are the two main forces Secondly, the matter of the TonkinGulf demarcation, which is located just outside the Ha Long Bay, has not yet beenresolved Both of the factors are very sensitive and complicated If not resolved, theirconsequences will not only affect the tourism industry but also the entire politicaleconomy of Vietnam
2.2 Economical Environment
Trang 9In the two recent decades, Vietnam and China are Asian countries with the fastestgrowth Income per capita of Vietnam is over $1000 in 2010, which makes the countrybecome one of the countries with incomes at average international level (source: IMFwebsite) Meanwhile, the year 2010 also marked China’s rapid development when itovertook Japan to become the world’s second largest economy with the total GDP of
$5,878.207 billion ($4,382.136 per capital) counted by the current price (source: IMFwebsite)
The economic relation between the two countries develops rapidly but disproportionatelyand has bad effect on Vietnam As of the first half in 2011, Vietnam get a $6.25 billiontrade deficit from China
In the coming years, Vietnam economy will be restructured towards macroeconomicstability and sustainable development, its mechanisms will be transformed, tradecommitments will also be implemented under the frame of the World Trade Organizationwhich this country has been a member since 2007, and Vietnam to become anindustrialized country in 2020
2.3 Cultural and Social Environment
Vietnam culture in general is quite diverse with 54 ethnic groups living togetherpeacefully, scattering across 64 provinces in the country The Kinh is the majority,accounting for more than 90% Vietnamese population In terms of administrativeinformation, the majority of Vietnam does not follow any religion, is probably derivedfrom the Communist Party’s policy of the atheism In fact, the main religion of theVietnam majority as Tam Giao Dong Nguyen, which means a cultural religion isconstituted by the harmonious blend over nearly two millennia of Buddhism (Indianorigin), Confucianism and Taoism (Chinese origin) As a result, there are manysimilarities that shared between Vietnamese and Chinese cultures However, still remainmajor differences in customs, life style, stereotypes, values, etc
2.4 Technological Environment
Trang 10Currently, internet and communications systems are quickly developed in Vietnam,which creates favorable conditions for exchange of information and connections betweenpeople of different regions and countries Tourists can easily access the interneteverywhere for contacting their family or for many other purposes.
2.5 Natural Environment
Vietnam is located in the heart of Southeast Asia, in the eastern of the Indochina, with along coastline of 3.260 kms and land border of 4.510 km Vietnam climate is tropicalclimate and divided into four distinct seasons About three quarters of its territory ismountainous and tropical rainforest Due to these features, Vietnam is very favorable forthe development of tourism
2.6 Legal Environment
In term of legal, the status of insecurity and inorder at tourist destinations in Vietnam isvery common as Vietnam has not had particular law to overcome this This makeVietnam tourism image to be no longer appreciated in the eyes of international tourists
Given the analysis on the six factors, we can come to below conclusions about theopportunities and challenges for Vietnam’s tourism industry
- Located in the centre of the region with
several important airlines and international
shippinglines
- Political stability and social peace
- Building diplomatic relationhips with 178
countries and territories in the world
(www.mofa.gov.vn)
- Rapid economic growth
- The four season climate is favorable for
- Potential risk of territory China
- Current problems of eco-environmentalpollution in Ha Long Bay
- Vietnam is one of the countries which aremost affected by climate change
- The governmental policy ofmacroeconomic stability and inflationcontrol during the coming years mayrestrain the TRH financial ability
Trang 11developing many types of tourism
- Rich and diverse regional culture is
attractive to tourists
- Ha Long Bay was voted to be one of the
world’s new seven wonders of the natures
- Far away from the International Airport
- Weak in the issues of security and safetyfor tourists
V Market Analysis
1
The Market of Provid ing Hotel – Luxury Resort Service in Vietnam
The statistics of General Administration of Tourism shows that as of May 9, 2011, thereare around 12,500 hotel and motel supplyng about 250,000 rooms across Vietnam asbelow
Number
of hotels
Number
of Rooms
Number
of hotels
Number
of Rooms
(Sorce: Vietnamese Tourism Organization Website http://www.vietnamtourism.gov.vn/)
The main connection channel between the Vietnam tourism hotel services with bothdomestic and foreign tourists is about 987 companies or organizations operating in theindustry
Total State-own
Enterprise
Jointstock Enterprise
JointventureEnterprise
Limited Enterprise
Private Enterprise
Others
(Source: Vietnamese Tourism Organization Website http://www.vietnamtourism.gov.vn/)
Trang 12There are 36 three- to five-star hotels in Quang Ninh province, with three 5-star (all arehotels yachts), 15 four-star hotels and 17 three-star hotel Among those hotels is RoyalCasino Hotel which is at same market segment with TRH resort Thus, TRH may beconsidered a market leader in this sector and its competitive pressures is not large enough
to jeopardize its operations
2 The Market of International Tourists
In recent years, the number of international tourists visiting Vietnam has increased fromover 4 million in 2007 to over 5 million customers in 2010, in which Chinese customershas always accounted for the largest number
The number of International Visitors to Vietnam
(Source: Vietnamese Tourism Organization Website http://www.vietnamtourism.gov.vn/)
It can be seen that more than a half of the international visitors to Vietnam with thepurpose of travel and relax About one fifth of the total comes for business purposes Themost common means used is by air (80%)
The graph below describes the rise and fall of the number of tourists from 2008-2011(months)
Trang 13(Source: Vietnamese Tourism Organization Website http://www.vietnamtourism.gov.vn/)
It is clear that the number of international tourists to Vietnam seems to reach yearly peak
at the end of the year and the beginning of the next year, and then go down in the year
mid-3 The trends of Chinese tourists
- Destinations: Depends on the factors like cultures, Chinese government’s economicpolicies, the destination chosen by Chinese visistors is often in the Asia Pacific region,especially North Asia and Southeast Asia About 70% of the tourists arrive at Hong Kong
or Macau
- Place of departure: Most of them are from big cities like Beijing, Shanghai, Guangzhou,and some major economic zones