Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain

This paper explores a two-echelon tourism supply chain consisting of a hotel and an online travel agency. The upside hotel rooms can be sold through the downside hotel alliance and online travel agency. The hotel alliance, selling rooms at a lower price, is a direct sale platform with a negligible e...

Full description

Saved in:
Bibliographic Details
Main Authors: Lei Yang, Jingna Ji, Kebing Chen
Format: Article
Language:English
Published: Wiley 2016-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2016/5760139
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850172330614980608
author Lei Yang
Jingna Ji
Kebing Chen
author_facet Lei Yang
Jingna Ji
Kebing Chen
author_sort Lei Yang
collection DOAJ
description This paper explores a two-echelon tourism supply chain consisting of a hotel and an online travel agency. The upside hotel rooms can be sold through the downside hotel alliance and online travel agency. The hotel alliance, selling rooms at a lower price, is a direct sale platform with a negligible entry fee. Notwithstanding, the online travel agency sells the room at a higher price with related personalized service. Customers will be refunded partially in case of their cancellation or no-show. An integrated model and two decentralized models based on Bertrand and Stackelberg games are developed, respectively. The results show that when the wholesale price is lower than a certain value, both the hotel and the online travel agency can gain more profit from the Stackelberg game than that from the Bertrand game. In the case that the hotel allows overbooking, the optimal overbooking quantity is obtained. If the overbooking proportion is too high, overbooking is profitable for the hotel only when the overbooking cost is lower than a certain value. At the end of the study, some experiments are conducted to analyze the sensitivity of the optimal prices and profits in the light of certain parameters.
format Article
id doaj-art-cf79cab1c183481fba48960c8da43ec0
institution OA Journals
issn 1026-0226
1607-887X
language English
publishDate 2016-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-cf79cab1c183481fba48960c8da43ec02025-08-20T02:20:06ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2016-01-01201610.1155/2016/57601395760139Game Models on Optimal Strategies in a Tourism Dual-Channel Supply ChainLei Yang0Jingna Ji1Kebing Chen2School of Economics and Commerce, South China University of Technology, Guangzhou, Guangdong 510006, ChinaSchool of Economics and Commerce, South China University of Technology, Guangzhou, Guangdong 510006, ChinaDepartment of Mathematics, Nanjing University of Aeronautics and Astronautics, Nanjing, Jiangsu 210016, ChinaThis paper explores a two-echelon tourism supply chain consisting of a hotel and an online travel agency. The upside hotel rooms can be sold through the downside hotel alliance and online travel agency. The hotel alliance, selling rooms at a lower price, is a direct sale platform with a negligible entry fee. Notwithstanding, the online travel agency sells the room at a higher price with related personalized service. Customers will be refunded partially in case of their cancellation or no-show. An integrated model and two decentralized models based on Bertrand and Stackelberg games are developed, respectively. The results show that when the wholesale price is lower than a certain value, both the hotel and the online travel agency can gain more profit from the Stackelberg game than that from the Bertrand game. In the case that the hotel allows overbooking, the optimal overbooking quantity is obtained. If the overbooking proportion is too high, overbooking is profitable for the hotel only when the overbooking cost is lower than a certain value. At the end of the study, some experiments are conducted to analyze the sensitivity of the optimal prices and profits in the light of certain parameters.http://dx.doi.org/10.1155/2016/5760139
spellingShingle Lei Yang
Jingna Ji
Kebing Chen
Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain
Discrete Dynamics in Nature and Society
title Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain
title_full Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain
title_fullStr Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain
title_full_unstemmed Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain
title_short Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain
title_sort game models on optimal strategies in a tourism dual channel supply chain
url http://dx.doi.org/10.1155/2016/5760139
work_keys_str_mv AT leiyang gamemodelsonoptimalstrategiesinatourismdualchannelsupplychain
AT jingnaji gamemodelsonoptimalstrategiesinatourismdualchannelsupplychain
AT kebingchen gamemodelsonoptimalstrategiesinatourismdualchannelsupplychain