Tourism Supply-Chain Coordination: The Cooperation between Tourism Hotel and Tour Operator

Xiaolong Guo · Lina He

85 citations0/0 files storedTourism Economics

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Supply Chain and Inventory Management Diverse Aspects of Tourism Research Merger and Competition Analysis

Abstract

This paper examines the cooperation problem that occurs when a tour operator cooperates with a tourism hotel with regard to two types of tour packages – luxury and economy. The authors first analyse the effects of basic utilities and prices on demand for the packages. They then build a sequential Stackelberg game model to study this cooperation in a decentralized scenario, and find that the tourism hotel acquires more revenue from the packages than the tour operator owing to its stronger bargaining power. Finally, a quantity-discount contract based on revenue sharing is designed to achieve full coordination in the cooperation, under which the total revenue from the packages is identical to that in a centralized scenario.

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References

2005Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations 2003Supply chain coordination by revenue sharing contracts 1987The Price Bundling of Services: A Normative Framework 2009Tourism supply chain management: A new research agenda 1998Strategies of Cooperation 2006A supply chain model with direct and retail channels 2004Channel Performance Under Consignment Contract with Revenue Sharing 2004Designing a distribution network in a supply chain system: Formulation and efficient solution procedure

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