Study On The Improvement Of Profitability Of BH Travel Agency In Taiyuan City

In the process of the transformation and upgrading of Taiyuan's resource-based economy,tourism take up an important strategic position,while the profit margin of the travel agency industry,as an important part of the development of the tourism in Taiyuan,is at a low level.As a representative of the travel agency industry in Taiyuan,it is of great significance for the future development of the tourism in Taiyuan to explore the ways to improve its profitability.In order to solve the problems above,in this paper I study the research object mainly based on two research tools: Du Pont analysis and the theory of core competitiveness.The theory of core competitiveness shows that the core competitiveness is the source of competitive advantages.Only by forming the core competitiveness can we create competitive advantages and improve the profitability of enterprises.Du Pont analysis reveals the main index that affect the profitability of enterprises by the relationship among major financial ratios to analyze the financial situation of enterprises comprehensively.Based on the analysis of the profit model of the travel agency industry,in this paper I define the advantages and the disadvantages in the enterprise,external threats and opportunities out of the enterprise by SWOT analysis,and find the advantages and resources available for the construction of BH travel agency's core competitiveness;then I analyze BH travel agency by Du Pont analysis to conclude that it is necessary to try to improve the Sales net interest rate and equity multiplier of the enterprise for improving the profitability of the enterprise.According to the conclusions above,I have summed up 5categories of 13 strategies based on the construction of core competitiveness by the construction of SWOT analysis matrix and qualitative analysis to promote the realization of the objectives from the perspective of corporate strategy with the relative management measures;and have achieved the improvement of profitability by the financial ways just like the adoption of feasible measures to increase sales revenue,reducing the cost of the enterprise,and increasing the debt ratio appropriately.