VoyagAir Travel Agency Checkpoint #2 Adam Bailey, Zach Hayes, John Hendricks, Hung Minh Do, Matthew McKay, Jacob Rogan

The Bottom Line

VoyagAir is a unique travel agency that offers a personalized customer experience with descriptive planning and high quality customer service that continues throughout our clients' travel plans. VoyagAir also has an intimate knowledge of destinations within Southeast Asia to connect customers with the most interesting and exciting experiences.

VoyagAir serves business travelers and tourists throughout Southeast Asia and those looking to travel into the region.

________________________________________

New market conditions in Southeast Asia, such as growth of the middle class, increases in travel to the region, and low competition make it a prime location for a travel agency.

These are the Demand Shifters:

The volume of travel in Southeast Asia has increased by 25% in the last year alone and will continue to grow in the next five years

Travel from Europe, one of Southeast Asia's largest sender of tourists, increased by 30% last year

Cultural changes in Vietnam are causing the people to value experiences such as vacations over other wants especially among the middle class

Vietnam’s middle class will double to 33 million people by 2020

The working class in Southeast Asia is now primarily made up of millennial generation from 18-35 who now have money and love to travel

Target Market

Business travelers in Southeast Asia looking to travel abroad

Business travelers abroad looking to travel into Southeast Asia

Middle Class travelers from Southeast Asia looking to travel abroad

Middle Class travelers abroad looking to travel to Southeast Asia

Mainly serving Southeast Asia and European travelers with smaller markets in US, and other Asian countries

The new middle class in Southeast Asia that want to spend their money on experiences and displays of wealth

Place

We are starting with two physical travel agency locations in Vietnam, but we will service travelers abroad through our website and app.

Our main markets will be Southeast Asia and Europe

Ho Chi Minh City has a population of 8.4 Millions (2016) and Ha Noi, the Capital of Vietnam, has a population of 7.8 Millions (2015). So these two cities are ideal for reaching a large number of people.

Southeast Asia: Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam

Segmentation

1) Southeast Asian Tourist and Business Travelers

Demographics: The middle class is exploding in Southeast Asia (Jennings, 2016). It is younger, has a greater number of Bachelors degrees, and has higher disposable incomes

Psychopgrahics: The new middle class is heavily focused on experiences and on showing status (Jennings, 2016)

2) European Tourists

Demographics: Families in the middle and upper class that travels often

Psychographics: People who are looking for cheaper destinations

Geographics: Western Europe and Russia make up the largest percentage of European travelers to Southeast Asia

The Italian market for Vietnamese tourism upped 30 percent, Spain and the UK ones jumped by 27 percent and 22 percent, respectively. Russia is the Vietnamese tourism sector’s biggest European market with a growth of 27 percent.

Website and App

We will also position ourselves online to reach the greatest amount of customers especially within Europe who cannot visit our physical locations

Product

Value of our product:

We add a personalized Customer Experience that continues throughout our clients' travel plans.

We offer more value for the customer’s dollar - by capitalizing on the airline miles reward system for each individual, we can give loyal customers more benefits than the competitors. For example, extended stay, discount flights, and free priority check in.

We take the stress out of travel - often times, when planning a trip, it can be stressful. We will offer a full service to our customers taking away the stress of travel.

A unified, smartphone app, website, and airport kiosk experience

We partner with a credit card company to offer more rewards

What we offer:

We offer customized services for the customer to chose where and when they want to go

We offer vacation packages that we have already put together

We present a variety of different ticket types to customers to fit their needs including economy, premium economy, business, and first class

Our website will be simple and easy to use. Customers will be easily be able to access trip recommendations and call a travel agent through the website if they need assistance.

We keep track of customer's points and find them deals that give them the most points so that we can help them get the most value possible from their travels.

We offer 24-7 service, with English, Chinese, and Vietnamese language options for customer

Travel insurance is available for all packages should the customer choose it

We offer free return for flight tickets within 28 hours of purchase.

Price

We charge a 5% commission fee for all transactions through our agency

Discount 5% for 1st time customers or when they spens more than $2000

List price with three options for customer to shows them how many miles they can earns from the tickets they buy.

Free 1st checked bag allowance for VIP customer and who open a credit card through us.

Flexible credit terms and time to pay. If customer don’t have enough money we adjust their travel plans to help them save more or plan for their saving in the future.

Promotion

Advertising

Internet advertising: We will advertise through Google ads as well as SEO to bring our website into the top search results.

Promotions such as free 1 or 2 nights stay in 3 stars Hotel in certain country in Asia for group customer or 1st time customer booking an international flight.

Working with companies in Southeast Asia to offer them discounts for business travelers using our services

Marketing at high school or University, give gift for student with highest score in certain school in the center of Hanoi and Ho Chi Minh city.

References:

Alvarez, A. (2017, January). Travel Agencies in the US. Retrieved March 22, 2017, from http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1481

Choong, D., & Hedrick-Wong, Y. (2017, January 24). Mastercard Future of Outbound Travel in Asia Pacific (2016 to 2021) Report . Retrieved February 26, 2017, from http://newsroom.mastercard.com/asia-pacific/files/2017/01/Mastercard-Future-of-Outbound-Travel-Report-2016-2021-Asia-Pacific1.pdf

Elliott, C. (2011, February 06). What do airline passengers really want - besides a good fare? Retrieved March 28, 2017, from http://elliott.org/blog/what-do-airline-passengers-really-want-besides-a-good-fare/

Jennings, R. (2016, September 06). Vietnam's Growing Middle Class Expected to Double by 2020. Retrieved February 26, 2017, from http://learningenglish.voanews.com/a/higher-priced-goods-popular-with-vietnams-middle-class/3496221.html

Meltzer, M. (2014, July 16). 10 Reasons Travel Agents Are Better Than the Internet. Retrieved March 22, 2017, from http://www.huffingtonpost.com/thrillist/10-reasons-travel-agents_b_5591994.html

Morello, R. (2012, October 27). What Are the Profit Margins on Tourism-Related Businesses? Retrieved March 22, 2017, from http://yourbusiness.azcentral.com/profit-margins-tourismrelated-businesses-10110.html

Sort Top 10 Best Rated Travel Agencies. (n.d.). Retrieved March 22, 2017, from https://www.consumeraffairs.com/travel/agencies.html

ThiThanh, B. (2014, August 8). Comparison of Vietnamese Travel Habits | Asia Insight Report | The Intelligence Provider INTAGE Inc. Retrieved March 22, 2017, from https://www.intage.co.jp/english/asia_insight/20140808#.WNKZ53P3af1

Torr, J. (2016, January 26). Vietjet Air reports 34.5% revenue increase in 2015. Retrieved February 26, 2017, from http://atwonline.com/finance-data/vietjet-air-reports-345-revenue-increase-2015

Vietnamnet. (2016, December 23). Vietnam’s tourism hits growth records in 2016. Retrieved March 22, 2017, from http://m.english.vietnamnet.vn/fms/travel/169988/vietnam-s-tourism-hits-growth-records-in-2016.html

VeitNamNet. (2017, January 12). Vietnam to rank 2nd in travel growth. Retrieved February 26, 2017, from http://m.english.vietnamnet.vn/fms/travel/171121/vietnam-to-rank-2nd-in-travel-growth.html

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.