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

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  • Xiaolong Guo
  • Lina He

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.

Suggested Citation

  • Xiaolong Guo & Lina He, 2012. "Tourism Supply-Chain Coordination: The Cooperation between Tourism Hotel and Tour Operator," Tourism Economics, , vol. 18(6), pages 1361-1376, December.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:6:p:1361-1376
    DOI: 10.5367/te.2012.0179
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    References listed on IDEAS

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    2. C. I. Chiang & Y. H. Cheng, 2022. "On the Stackelberg game model of the collaboration of a hotel and third-party booking websites," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(1), pages 97-105, February.
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    5. Tsaur, Ruey-Chyn & Chen, Chyoug-Hwa, 2018. "Strategies for cross-border travel supply chains: Gaming chinese group tours to Taiwan," Tourism Management, Elsevier, vol. 64(C), pages 154-169.
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    7. à lvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2020. "The effects on tourism of airfare subsidies for residents: The key role of packaging strategies," Journal of Air Transport Management, Elsevier, vol. 84(C).
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    11. Xijia Huang & Shuai Zhu & Jia Wang, 2021. "Optimal Emission Reduction and Pricing in the Tourism Supply Chain Considering Different Market Structures and Word-of-Mouth Effect," Sustainability, MDPI, vol. 13(7), pages 1-13, April.
    12. Nina Zhu & Gang Zeng & Xue Li & Zhangqi Zhong, 2023. "Optimum spatial scale of regional tourism cooperation based on spillover effects in tourism flows," Tourism Economics, , vol. 29(2), pages 409-436, March.
    13. Sarat K. Jena & Purushottam L. Meena, 2019. "Price and Service Competition in a Tourism Supply Chain," Service Science, INFORMS, vol. 11(4), pages 279-291, December.
    14. Chenchen Yang & Junfeng Dong & Jingjing Hao, 2019. "Cooperation Contracts Between Small and Major Scenic Spots in Peak Seasons," SAGE Open, , vol. 9(3), pages 21582440198, July.
    15. Jun Zhao, 2022. "Will the community O2O service supply channel benefit the elderly healthcare service supply chain?," Electronic Commerce Research, Springer, vol. 22(4), pages 1617-1650, December.
    16. Sarat Kumar Jena & Deepti Jog, 2017. "Price competition in a tourism supply chain," Tourism Economics, , vol. 23(6), pages 1235-1254, September.
    17. Yufeng Dong & Liuyi Ling, 2015. "Hotel Overbooking and Cooperation with Third-Party Websites," Sustainability, MDPI, vol. 7(9), pages 1-17, August.
    18. Álvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2017. "Air passenger duties as strategic tourism taxation," Tourism Management, Elsevier, vol. 60(C), pages 442-453.
    19. Yong He & Peng He & Feifei Xu & Chunming (Victor) Shi, 2019. "Sustainable tourism modeling: Pricing decisions and evolutionarily stable strategies for competitive tour operators," Tourism Economics, , vol. 25(5), pages 779-799, August.
    20. Qiang Guo & Chris K. Anderson & Junfeng Dong & Pengfei Zhao & Qingkai Ji, 2020. "Coordination Contracts for Hotels and Online Travel Agents," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    21. Huang, Chin-wei, 2018. "Assessing the performance of tourism supply chains by using the hybrid network data envelopment analysis model," Tourism Management, Elsevier, vol. 65(C), pages 303-316.
    22. Ling, Liuyi & Guo, Xiaolong & Yang, Chenchen, 2014. "Opening the online marketplace: An examination of hotel pricing and travel agency on-line distribution of rooms," Tourism Management, Elsevier, vol. 45(C), pages 234-243.

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