However, since tourism activities were reopened in March 2022, businesses in the industry, especially large ones such as Vietravel, Saigontourist or Ben Thanh Tourist, have enjoyed impressive growth.
On December 20, 1995, Transport Marketing & Tourism Company under the Ministry of Transport was established on the basis of the Center of Tourism, Marketing and Investment Services (Tracodi-Tours). On August 31, 2010, it was transformed into a one-member limited liability company.
In 2014, the company officially changed from state ownership to a joint stock company without state capital, becoming Vietnam Travel and Marketing Transports Joint Stock Company - Vietravel.
After more than 20 years of establishment and development, Vietravel has affirmed its top position in terms of service quality, and diversified products. By the end of 2012, Vietravel had completed the deployment of a network of 11 tourism offices in key markets around the world such as the United States, France, Hong Kong, Malaysia, Thailand, Singapore, etc.
In early 2021, Vietravel launched Vietravel Airlines, competing with familiar names such as Vietnam Airlines, Vietjet Air, and Bamboo Airways.
The company’s revenue in the second quarter of 2022 reached nearly VND 1,000 billion, up 4 times over the same period; profit after tax reached VND 48.9 billion, higher than that in the pre-pandemic period when it recorded a profit after tax of VND 16.3 billion.
The representative of Vietravel informed that such business results reflect the recovery of Vietnam's tourism industry in the second quarter of 2022.
However, in terms of business performance of subsidiaries and affiliates, Vietravel recorded a loss of nearly VND 7 billion in the second quarter of 2022, an improvement over the same period last year, mainly from the aviation segment.
According to Vietravel, the international market has not recovered, and fuel prices spiked which sometimes accounted for 65% of flight revenue. Therefore, although Vietravel Airlines' business activities recovered in the second quarter of 2022, revenue has not yet made up for expenses.
Previously, from April 2022, the domestic aviation market began to recover significantly and grow strongly in the following months. Statistics shows that the domestic aviation market served 5 million passengers in June 2022, an increase of 20.9% compared to May 2022 and an increase of 38.8% compared to June 2019.
Established in 1975, Saigontourist Travel Service Company Limited is currently the leading and only travel agency in Vietnam doing business effectively in all 3 fields including international travel, foreign travel, domestic tourism.
Business activities of Saigontourist include:
Saigontourist’s head office is located in Ho Chi Minh City. It also has 18 branches spreading throughout Vietnam. Cruise tourism is the channel that attracts a large number of international visitors at Saigontourist Travel, with hundreds of thousands of multi-national visitors to Vietnam each year.
In 2021, Saigontourist recorded a revenue of more than VND 1,140 billion, less than half of that in 2020. This figure is even 5.6 times lower than the average of the previous 4 years.
Its gross profit was negative for the first time when COGS exceeded the revenue threshold. Previously, this business still had a gross profit of nearly VND 46 billion in 2020.
In addition to declining revenue and gross profit, Saigontourist also suffered a loss of more than VND 160 billion from 19 joint ventures and associates, doubling over the same period. This business also lost a large part of financial income and other income.
In total, Saigontourist's after-tax loss was about VND 534 billion in 2021, nearly half of that in 2020. Two consecutive business losses have eroded the accumulated profit of this business. From nearly VND 2,370 billion before the epidemic, by the end of last year this figure had decreased by nearly three quarters.
Saigontourist set a target of welcoming a total of 950,000 visitors in 2022, an increase of 90% compared to 2021; total revenue was projected to reach VND 9,500 billion, up 53.2% compared to 2021; total gross profit to VND 1,410 billion, up 93.9% compared to 2021.
Ben Thanh Tourist Service Corporation (BenThanh Tourist) was established in 2005. After many years of development, the company has become a prestigious tourism brand in the domestic and foreign markets. BenThanh Tourist has a closed and diversified business network system in terms of products.
It provides domestic and international tourism service; MICE Tour; Tourist transportation; Restaurant - Hotel; Office buildings for rent; Commerce; Financial investment, etc.
Compared to the same period in 2021, the company recorded impressive business performance in the first 6 months of 2022. Specifically, revenue from travel services increased by more than 167%; restaurants - hotels increased by more than 124%; Finance increased more than 37%; Real estate increased by more than 12%; and Commerce increased more than 4%.
BenThanh Tourist branches across the country also reported impressive figures with revenue growth of more than 240% in Hanoi, more than 199% in Can Tho and over 94% in Da Nang. Total revenue of the company reached more than VND 282 billion, an increase of more than 54% compared to 2021.
In December 1996, TransViet Group was established with the first member - TransViet Promotion which had the role of general agent of many international airlines in Vietnam. Following the successes achieved in the aviation sector, in 1998, in response to the need for a professional travel agency, capable of meeting the increasingly demanding requirements of tourists for unique tour products, TransViet Travel was established.
Since its establishment, TransViet Travel has been constantly growing with 2 representative offices in Hanoi and Ho Chi Minh City. It is among the leading companies in the field of travel services, and has received many prestigious awards over the years such as: “Favorite travel brand”, “The most satisfying travel service”, etc.
Transviet Travel has been serving hundreds of large domestic and foreign customers, establishing relationships with hundreds of partners in more than 20 countries around the world. It also participates in promotion campaigns to promote the image of Vietnam to international customers.
As the first foreign company to own a travel license in Vietnam, Exotissimo Travel was established in 1993 by Eric Merlin, Denis Colonna and Olivier Colomes in Ho Chi Minh. It is also one of the most well-established travel agencies in Vietnam.
Owning 14 branches, Exotissimo Travel opens sightseeing tours, and MICE (Meeting - Commendation - Seminar - Exhibition) tours in Indochina, Myanmar, Indonesia, Singapore, and China.
In 2011, Exotissimo started to provide guides for individual travelers across Vietnam. That year, the company was awarded the Tourism Award by the Vietnam National Administration of Tourism. In 2012, it started operating tours in China and Japan.
In 2015, the company changed its name to EXO Travel, and was awarded the Travelife Certification for operations in Cambodia, Vietnam, and in 2016 for Thailand, Laos and Myanmar.
Alice Hoang Thao – VietnamCredit