Strategies for cross-border travel supply chains: Gaming chinese group tours to Taiwan

摘要

In examining the relationship between tour group operators and reception travel agencies, an in-depth mathematical decomposition of product price structure is a key process in understanding its dynamic interactions. There are strategic positions regarding the imbalance between tour group and reception travel agencies, and fierce competition is recorded within the destination market. We construct a cross border travel supply chain model and derive the influence of commission, reception fee, and administrative cost. An inadequate combination of these factors will lead to zero-commission tours. However, punitive and leadership countermeasures to the prisoner's dilemma for reception operators can be achieved not only from their own and management's self-disciplinary agreements by the destination authority, but also from support and actions under a consensus covering both group organizers and destinations. We provide strategic implications along with Taiwanese empirical evidence, and provide a reference and foundation for other destinations regarding market price-quantity simulations and strategic options. (C) 2017 Elsevier Ltd. All rights reserved.