A travel business deals mainly in the field of construction, sale, and implementation of package tours for tourists. In addition, a travel enterprise can also conduct intermediary activities to sell products of tourism suppliers or carry out other general business activities to ensure to serve the tourism needs of tourists from the first step to the last. In this article, LSX legal firm presents: “Characteristics of a travel business in Vietnam”
Characteristics of a travel business in Vietnam
Travel enterprise has legal status, independent accounting established for the purpose of making a profit by signing travel contracts and organizing the implementation of tour programs sold to customers.
According to the classification of Vietnam National Administration of Tourism, travel businesses include two types: international and domestic travel businesses.
- International travel agencies have the responsibility for developing and selling packages or partial tour programs at the request of customers to directly attract tourists to Vietnam and bring Vietnamese citizens as well as foreigners residing in Vietnam to travel.
- Domestic travel businesses have the responsibility for developing, selling, and organizing the implementation of domestic tourism programs, receiving entrustment to perform services and tour programs for foreign tourists brought to Vietnam by international travel businesses.
However, in reality, travel businesses not only combine the services of individual suppliers into tourist programs offered for sale, but also directly produce tourism products or act as an intermediary to sell tourism products for a commission.
In short, a tour operator is a special type of business dealing mainly in the field of building, selling, and implementing package tours for tourists. Besides, a travel business can also conduct intermediary activities to sell products of tourism suppliers or carry out other general business activities to ensure to serve the tourism needs of travelers.
Functions of a travel agency
In the field of its activities, the travel agency performs the function of brokering intermediary services, organizing the production of travel programs, and exploiting other tourism programs. With this function, the travel business presents as a bridge between tourism supply and demand, between tourists and the basic suppliers of travel activities regulated by the characteristics of tourism products and tourism business.
For the production function, the travel business implements the development of package tour programs to serve the needs of clients.
In addition to the above two functions, travel businesses also provide services to meet the needs of travelers such as accommodation, food, and transportation services.
Mission of the travel agency
From the above functions, travel businesses perform the important tasks of organizing intermediary activities and organizing package tours, directly organizing package tours for clients:
- Firstly, organizing intermediary activities, selling and consuming products of tourism service providers. Organizing points of sale and travel agents to form the product distribution network of travel service providers. On that basis, shorten or eliminate the distance between tourists and tourism business establishments.
- Secondly, organizing package tours. These programs aim to link tourism products such as transportation, accommodation, and entertainment… into a perfect unified product to meet all the needs of tourists. Travel programs will eliminate difficulties and concerns of tourists, and at the same time give them peace of mind and confidence in the success of the trip.
- Thirdly, organizing to provide individual services to customers on the existing system of technical facilities to ensure all customer needs served from the first stage to the last stage.
The role of travel business
For tourists
Travel businesses will help customers satisfy their needs.
- Firstly, when buying package tours, tourists have saved both time and money for searching for information, and organizing arrangements for their travel.
- Secondly, tourists will enjoy the knowledge and experience of travel experts at travel agencies. Besides, the rich and attractive programs will create conditions for tourists to travel in the most scientific way.
- Thirdly, travel businesses have the ability to reduce prices much lower than the announced prices of travel service providers, this ensures that travel programs always have attractive prices for guests.
- Fourthly, travel agencies help tourists get a taste of the product before they decide to buy and actually consume it.
For suppliers of tourism products
- Travel businesses provide large, sufficient, and planned sources of visitors. On the other hand, on the basis of the contract signed between the two parties, the suppliers have transferred a part of the risks that may occur to the travel businesses.
- Suppliers benefit greatly from the promotional activities of the travel agency. Especially for developing countries like Vietnam, when the financial capacity is still limited, the relationship of travel businesses in the world is an effective advertising method for the international tourism market.
For the Tourism Industry
The travel business is a unit that constitutes the tourism industry. It plays a role in promoting or limiting the development of the tourism industry. If each travel business operates successfully, it will create good conditions for the entire tourism industry in particular and the entire economy in general.
For other businesses
Each business enterprise is in an overall relationship with other businesses in the market, and travel businesses are no exception to that rule. The travel business promotes the development of other businesses and industries, reflected in the fact that the tour operator uses the output of other production industries to serve its production and business activities.
For local residents
When tourism develops, many tourist destinations will be opened, especially local destinations. This will help the local population expand their knowledge, help them have business opportunities, and more importantly, create jobs for people here.
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Finally, hope this article is useful for you to answer the question about “Characteristics of a travel business in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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Related questions
Established in accordance with the law on enterprises.
Deposit for international travel service business at the bank.
The person in charge of the travel service business must have a College or higher degree in tourism. If that person graduated from a College school or higher in another major, then he/she must have a certificate of international tourism management.
Established in accordance with the law on enterprises.
Deposit for domestic travel service business at the bank.
The person in charge of the travel service business must have a Secondary or higher degree in tourism. If that person graduated from a Secondary school or higher in another major, then he/she must have a certificate in domestic tourism management and operations.
Business registration application form;
Company charter;
List of members as well as shareholders (for Multi-member limited liability companies and Joint-stock companies);
Authenticated copies of:
1. Valid ID card or valid Passport for individuals;
2. If appointing a legal representative of the travel company to directly submit the application, that representative needs to bring personal identification paper (ID card, passport). In case founders authorize another individual to submit the application, it is necessary to have a written authorization that has been notarized or authenticated according to regulations.
3. Decision on capital contribution for members as organizations.
Conclusion: So the above is Characteristics of a travel business in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
