Distribution of benefits in the value chain of travel service in Nha Trang City

This study analyzes the distribution of benefits among parties in the value chain of travel servies in Nha Trang city, Khanh Hoa province. The study identifies the value chain’s major parties including transportation services, services at the destination and tourism programs. The study’s results show that the transportation service has the highest profit-to-total cost ratio but the lowest profit. In addition, although the return of the tourism program ranks second in the entire value chain, its return on total cost ratio is not the highest and it experiences the highest cost in the entire value chain. Profit value and profit-to-total cost ratio are different among parties in the value chain of travel servies in Nha Trang city. The study’s results imply that travel companies and tourism service providers should cooperate more closely to form a value chain of travel servies that provides good quality and affordable services to tourists. Moreover, when service providers in the value chain cooperate together, prices will be kept stably during peak seasons, creating confidence for tourists when using travel services.