Saigontourist holding co - travel and

SaigonTourist Holding Co – Travel and Tourism – Vietnam Euromonitor International : Local Company Profile April 2010 SaigonTourist Holding Co – Travel And Tourism Vietnam List of Contents and Tables Strategic Direction ……………………………………………………………………………………………………………………………………. 1 Key Facts ………………………………………………………………………………………………………………………………………………….. 1 Summary 1 SaigonTourist Holding Co: Key Facts ………………………………………………………………………. 1 Summary 2 SaigonTourist Holding Co: Operational Indicators …………………………………………………….. 1 Company Background………………………………………………………………………………………………………………………………. 1 Competitive Positioning ……………………………………………………………………………………………………………………………. 1 Summary 3 SaigonTourist Holding Co: Competitive Position 2009 ………………………………………………. 2 © Euromonitor International Page i SaigonTourist Holding Co – Travel And Tourism Vietnam SAIGONTOURIST HOLDING CO STRATEGIC DIRECTION – SaigonTourist aims to improve service quality and expand its network to provide more choice for travellers, and entice them to use other services including hotels, car rental and travel retail. KEY FACTS Summary 1 SaigonTourist Holding Co: Key Facts Full name of company: SaigonTourist Holding Company Address: 23 Le Loi, District 1, Ho Chi Minh City, Vietnam Tel: +84 (8) 3829 2291 Fax: +84 (8) 3824 3239 www: www. saigon-tourist. com Activities: Hotels and resorts and restaurants, Travel and MICE services, Transport, Construction, Tourism training, Import-export, Food production, SaigonTourist cable television Source: Summary 2 Euromonitor International from company reports, Trade press SaigonTourist Holding Co: Operational Indicators 2007 2008 2009 Net sales (VND billion) 9, 052. 0 11, 562. 9 12, 153. 0 Net profit (VND billion) 2, 564. 1 7, 500. 0 8, 200. 0 Number of employees 10, 000 n/a n/a Source: Trade press, Company research COMPANY BACKGROUND – SaigonTourist started trading in 1975 in Ho Chi Minh city as the city’s first business in the travel and tourism industry. On 30 March 1999, SaigonTourist Holding Co was established by Ho Chi Minh city’s People’s Committee. – Since 1999, SaigonTourist has been ranked as the leading tourism corporation in Vietnam. It greatly contributes to the industry by providing a wide range of services such as hotels and restaurants, food, construction and transportation. – As an official member of PATA (Pacific Asia Travel Association), ASTA (American Society of Travel Agents), JATA (Japan Association of Travel Agents), and USTOA (United States Tour Operators Association), SaigonTourist has a lot of opportunities to advertise the company’s products and services to those countries to attract more tourists. COMPETITIVE POSITIONING – Since its establishment in 1999, SaigonTourist has been the leading travel and tourism company. It serves 80% of international tourists in Vietnam and earned an estimated net profit of about VND8. 2 trillion in 2009. The global recession and Swine Flu Pandemic did affect sales of SaigonTourist. However, as © Euromonitor International Page 1 SaigonTourist Holding Co – Travel And Tourism Vietnam SaigonTourist offers a wide range of services, the net profit of the company still increased by 9%. It is unlikely that during the forecast period any other travel retailer can outrun SaigonTourist in terms of travel services provider. – SaigonTourist owns a total of nearly 60 hotels in the vicinity of many tourists attractions in Vietnam, four of which are luxury ones. In 2010, more luxury hotels will enter the business making the position of SaigonTourist as an accommodation provider more solid. – Due to its reputation and experience in organizing MICE tours, SaigonTourist has won many bids to host international MICE tourists in Vietnam. – SaigonTourist has a fleet of over 300 cars of all sizes and brands. With the motto “ keep the cars and driving safe” , the drivers of SaigonTourist have all gone through thorough training about traffic laws, and even English and Vietnam history and culture. SaigonTourist also invested in buying a series of new, high quality cars, such as Mercedes Sprinter, Spacy Aero and Aero Town to serve big corporations and hotels. Non-chauffer car rental is also a strength of SaigonTourist. With about 2% of car rental value sales, SaigonTourist continues to lead in transportation in 2009. – SaigonTourist is under negotiation to buy a hotel in San Francisco, US and also has the intention of buying hotels in Tokyom (Japan), Berlin (Germany), Moscow (Russia) and Hong Kong, making SaigonTourist a global brand. Summary 3 SaigonTourist Holding Co: Competitive Position 2009 Product type Value share Rank Travel retail 1. 7% 1 Hotels 29. 1% 1 1. 8% 1 Car rental Source: Trade interviews, Euromonitor International estimates © Euromonitor International Page 2