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TABLE CONTENT
I. Introduction: 2
II. Main ideas: 2
III. Conculusion: 15
Reference: 20
I. Introduction:
Red Tours is a private owned enterprise which operates under International and Domestic Travel License Number 0047/GPLHQT from Vietnam National Tourism Department. Established in 1993, Red Tours is one of Vietnam's most experienced and professional tour operators. Its aim is to provide all travel – related services in and out of Vietnam with the desire of “personalized services of our best” and a commitment to Total Quality Management. It is honored to be awarded certificate of merit in many years from Vietnam National Tourism Department as well as many compliments from tourists and international and domestic travel operating associations. Red Tours is also the official member of tourism association (ASTA – PATA – JATA).
II. Main ideas:
A)External environment:
PESTEL:
Economic:
- The report “ World economic situation and prospects 2010” issued by DESA, the world economic situation has been improving from the second quarter of 2009. International trade and global industrial production also have been recovering noticeably. By stimulus program, Vietnamese economy is step by step overcome world financial crisis. US’s Goldman Sachs group forecasted that GDP was expected to climb to 8,2 % in 2010 . Tourism was selected as the key industry to Giúp developing countries as well as Vietnam to recover their economy. World tourism organization forecasted that tourism will grow at 4 %. It is a good new for Vietnam tourism and Red tour company. The consumption in tourism industry will increasing sharply compare with 2009.
In 2010, the Vietnamese central bank allow bank to offer negotiate interest rate with clients. It will make the hard completion between banks and customers will take benefit. It is advantage for the company if it want to borrow money from the banks with suitable interest rate.
Inflation rate in 2009 is 7 % but follow Standard Charter bank ‘s research team it may exceed 10% in 2010. Inflation will lead to increasing price of goods as well as price of tour price.
Exchange rate: 26 Nov 2009, government devalued the dong by 5 % , at 17,961 per dollar. 11 Feb 2010, the latest devaluation of the dong is 3.4%, at 19,100 per dollar. It is not a good news for domestic customers who want to go abroad because the current exchange of VND has low position against other foreign currencies.
Political:
In 2009, Vietnamese government gave out many stimulate program in tourism. In jan, 2009, the administration also announced the tour discount campaign called Impressive Vietnam. Red Tours also joined in the Campaign. This is the campaign launched to boost the customers demand toward tourism with 99 boost-demand tourism packages. Red Tours has joined with three packages: to Ha Long Bay, Cat Ba Island, and discover the culture of the love duets of Bac Ninh.
Especially, in 2010, department of Culture and Information produce 7 programs to attracted tourist come to Hanoi in 1000 years Thang Long ceremony. Furthermore, according the information from the website of Vietnam Ministry of Foreign Affair ,as of January 2010, Vietnam signed an agreement on visa exemption which takes effect up to 55 countries. People in 55 countries as well as Vietnamese people could save a lot of visa cost .These are some advantages for the company to attract domestic as well as foreign customers.
However, there is a policy which is considered as disadvantage factor of tourism is VTA tax. In most of countries, foreign will be refund VAT tax when come to the air port. However, in Vietnam, it didn’t happen. All foreign tourists have to pay VAT 10%. It makes the quality of tourism service in Vietnam is not only low but also costs high price compare with another countries in Asia. Therefore, It also might affect to the number of tourist come to Vietnam.
Social- culture:
According to report of RNCOS, market research consulting service company, Vietnam is on the most popular tourist destination in the Asia Pacific regions. In 2010, Vietnam has many events, especially 1000 years Thang Long Ceremony. Therefore, demand for tourism will increasing sharply in this year. Follow Vietnam National Administration of Tourism information, In February 2010, the number of international visitors come to Vietnam is 446.323 arrivals, increasing 30% compared with Feb 2009. Total international arrivals in the first 2 months reach 877,715.( Appendix 1).The number of domestic customers also increase 40% compared at the same time in 2009 . Base on the positive numbers, Red tour absolutely could believe in the developing business in 2010.
Vietnam is young population country , estimate 80 mil people. People in working age occurs 66% . However, unemployment rate in 2009 is 4.7 %( Appendix 1.2) and more than 77 percent of Vietnamese workforce is belong to group that is lack of sustainable employment and easy to be poor. Vietnam has plenty of labor force but the quality of labor is low. Most of them are lack of skills and knowledge about their job. It might be affect to the quality of service which the company provide. Thus, Red tour will cost time and money to training them to satisfy customers most.
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