IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v20y2014i5p939-960.html
   My bibliography  Save this article

Pricing Competition and Channel Coordination in the Tourism Supply Chain with Optional Tours

Author

Listed:
  • Qiang Guo

    (Tourism College, Hainan University, Haikou, PR China)

  • Ye Shi

    (School of Management, University of Science and Technology of China, Hefei, PR China)

  • Junfeng Dong

    (School of Management, Hefei University of Technology, Hefei, PR China)

  • Xiaolong Guo

    (School of Management, University of Science and Technology of China, 96 Jinzhai Road, Hefei, Anhui Province 230026, PR China)

  • Chris K. Anderson

    (School of Hotel Administration, Cornell University, Ithaca, New York, USA)

Abstract

The authors consider a tourism supply chain that consists of a tour operator in the source market and a local operator at the destination. The tour product is composed of predesigned tours and optional tours. Consumers are sensitive to the price and the availability of optional tours, represented as the ratio of optional tours. The authors analyse how the ratio of optional tours to predesigned tours affects each player's equilibrium decisions given three different consumer attitudes towards optional tours. They find that when the channel is coordinated and the ratio of optional tours is sufficiently large, the local operator may reduce commissions. To curb the impacts of lowering commissions, the authors introduce a tax mechanism aimed at optional tours. Numeral examples are provided to illustrate the pricing impacts of optional tours.

Suggested Citation

  • Qiang Guo & Ye Shi & Junfeng Dong & Xiaolong Guo & Chris K. Anderson, 2014. "Pricing Competition and Channel Coordination in the Tourism Supply Chain with Optional Tours," Tourism Economics, , vol. 20(5), pages 939-960, October.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:5:p:939-960
    DOI: 10.5367/te.2013.0316
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/te.2013.0316
    Download Restriction: no
    File URL: https://libkey.io/10.5367/te.2013.0316?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Junfeng Dong & Ye Shi & Liang Liang & Huaqing Wu, 2012. "Comparative Analysis of Underdeveloped Tourism Destinations' Choice of Cooperation Modes: A Tourism Supply-Chain Model," Tourism Economics, , vol. 18(6), pages 1377-1399, December.
    2. Schiff, Aaron & Becken, Susanne, 2011. "Demand elasticity estimates for New Zealand tourism," Tourism Management, Elsevier, vol. 32(3), pages 564-575.
    3. Haiyan Song & Shu Yang & George Q. Huang, 2009. "Price Interactions between Theme Park and Tour Operator," Tourism Economics, , vol. 15(4), pages 813-824, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Carmen D à lvarez-Albelo & José A Martínez-González, 2024. "Should antitrust regulators be wary of inter-firm coordination agreements through a tourism destination card?," Tourism Economics, , vol. 30(2), pages 324-344, March.
    4. Jingmei Xu & Li Hu & Xiaolong Guo & Xia Yan, 2020. "Online cooperation mechanism: game analysis between a restaurant and a third-party website," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(1), pages 61-73, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kuo, Hsiao-I. & Chen, Chi-Chung & McAleer, Michael, 2012. "Estimating the impact of whaling on global whale-watching," Tourism Management, Elsevier, vol. 33(6), pages 1321-1328.
    2. Ngassam, Sylvain B. & Asongu, Simplice A. & Ngueuleweu, Gildas Tiwang, 2024. "A revisit of the natural resource curse in the tourism industry," Resources Policy, Elsevier, vol. 88(C).
    3. 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.
    4. Dong, Junfeng & Wu, Desheng Dash, 2019. "Two-period pricing and quick response with strategic customers," International Journal of Production Economics, Elsevier, vol. 215(C), pages 165-173.
    5. Junfeng Dong & Ye Shi & Liang Liang & Huaqing Wu, 2012. "Comparative Analysis of Underdeveloped Tourism Destinations' Choice of Cooperation Modes: A Tourism Supply-Chain Model," Tourism Economics, , vol. 18(6), pages 1377-1399, December.
    6. Gössling, Stefan, 2013. "National emissions from tourism: An overlooked policy challenge?," Energy Policy, Elsevier, vol. 59(C), pages 433-442.
    7. Arenoe, Bjorn & van der Rest, Jean-Pierre I. & Kattuman, Paul, 2015. "Game theoretic pricing models in hotel revenue management: An equilibrium choice-based conjoint analysis approach," Tourism Management, Elsevier, vol. 51(C), pages 96-102.
    8. Ulrich Gunter & Egon Smeral, 2016. "The decline of tourism income elasticities in a global context," Tourism Economics, , vol. 22(3), pages 466-483, June.
    9. Irsag, Bojan & Pukšec, Tomislav & Duić, Neven, 2012. "Long term energy demand projection and potential for energy savings of Croatian tourism–catering trade sector," Energy, Elsevier, vol. 48(1), pages 398-405.
    10. 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.
    11. Jingmei Xu & Li Hu & Xiaolong Guo & Xia Yan, 2020. "Online cooperation mechanism: game analysis between a restaurant and a third-party website," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(1), pages 61-73, February.
    12. Vatsa, Puneet, 2020. "Comovement amongst the demand for New Zealand tourism," Annals of Tourism Research, Elsevier, vol. 83(C).
    13. 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.
    14. Juan L. Nicolau & Lorenzo Masiero, 2013. "Relationship between Price Sensitivity and Expenditures in the Choice of Tourism Activities at the Destination," Tourism Economics, , vol. 19(1), pages 101-114, February.
    15. Wai Hong Kan Tsui & Faruk Balli & David Tat Wei Tan & Oscar Lau & Mudassar Hasan, 2018. "New Zealand business tourism," Tourism Economics, , vol. 24(4), pages 386-417, June.
    16. Khalilzadeh, Jalayer & Wang, Youcheng, 2018. "The economics of attitudes: A different approach to utility functions of players in tourism marketing coalitional networks," Tourism Management, Elsevier, vol. 65(C), pages 14-28.
    17. Rashidi, Taha H. & Koo, Tay T.R., 2016. "An analysis on travel party composition and expenditure: a discrete-continuous model," Annals of Tourism Research, Elsevier, vol. 56(C), pages 48-64.
    18. Logar, Ivana & van den Bergh, Jeroen C.J.M., 2013. "The impact of peak oil on tourism in Spain: An input–output analysis of price, demand and economy-wide effects," Energy, Elsevier, vol. 54(C), pages 155-166.
    19. Asensi Descals-Tormo & Maria J. Murgui-García & Jose Ramon Ruiz-Tamari, 2023. "A theoretical model-based indirect estimation of the direct and cross price elasticities of demand for tourist goods and services," LIDAM Discussion Papers IRES 2023013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    20. Silvia Emili & Paolo Figini & Andrea Guizzardi, 2020. "Modelling international monthly tourism demand at the micro destination level with climate indicators and web-traffic data," Tourism Economics, , vol. 26(7), pages 1129-1151, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:20:y:2014:i:5:p:939-960. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.