The company's Q2 revenue was only over 200 billion VND, while it was over 2,200 billion VND in the same period last year. Previously, Vietravel also stated that its expected loss this year would be 22 billion VND, but the actual number has far surpassed the expectation, reaching 80 billion VND.

Vietravel (Vietnam Travel and Marketing transports Company) has just released its financial statements for the second quarter of 2020 with net revenue of just 205 billion VND, less than ten percent of the same period last year. The reason for the sharp decline in sales was the impact of the pandemic.

With such humble revenue, Vietravel could only earn over 5 billion VND of gross profit and lost approximately 37.3 billion (38 billion VND after paying tariff) VND from main business activities.

After 6 months, Vietravel reached nearly 1,000 billion VND in net revenue, dropped remarkably 72% over the same period. The company reported a loss of nearly 80 billion VND. In 2020, Vietravel has set a revenue target of only 3,065 billion VND, which means it has foreseen a decrease of nearly 60% compared to the previous year. At the same time, the company expected to lose about 22 billion VND after many consecutive years of profit.

That means with the current data, Vietravel's revenue has only reached one-third of the original year plan and the loss has been 3 times higher than expected.

In 2020, Vietravel has aimed to restructure the entire company. Besides, the top priority is to maintain the staff and recover each business segment as quickly as possible.

Next year, the travel company is going to build a new brand identity of Vietravel Holding which promises to be more consistent with business-oriented tasks. The business ecosystem of the Vietravel Holdings model will consist of three main areas: transports, travel agents, and trade in services.

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In addition, Vietravel has many plans that are relevant to technology such as transforming the company's marketing methods to digital approaches, completing the online bidding system on both domestic and foreign markets, concentrating on investing in technology and transforming business forms into online sales channels, digitalizing all of the company's operation processes, and making all employees work on the provided software system.

At the online seminar of "Post-COVID-19: Proactive for the new Olympics" organized by the Tri Thuc Tre Newspaper in June, Mr. Nguyen Quoc Ky, President of Vietravel expected that the tourism market could open to international visitors from August on a prudent and secure pace. However, with the second wave of the outbreak originated from Da Nang recently, his wish may be very challenging to realize.

Source: Destination Review

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