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

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  • Tsaur, Ruey-Chyn
  • Chen, Chyoug-Hwa

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:touman:v:64:y:2018:i:c:p:154-169
    DOI: 10.1016/j.tourman.2017.08.011
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    References listed on IDEAS

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    Cited by:

    1. Ruey-Chyn Tsaur & Chyoug-Hwa Chen, 2018. "Sustainable Tourism Planning for Taiwanese in Administrative Effects with Respect to Chinese Arrivals," Sustainability, MDPI, vol. 10(12), pages 1-19, December.
    2. Ramsey Doug & Thimm Tatanja & Hehn Leonie, 2019. "Cross-border Shopping Tourism: A Switzerland-Germany Case Study," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 9(1), pages 3-17, May.

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