Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
504
A GAME-THEORETIC STUDY OF COMPETITION DYNAMICS OF TOURISM SUPPLY CHAINS FOR 
PACKAGE HOLIDAYS 
Shu Yang

School of Management 

University of Science & Technology of China 
PR China 
George Q. Huang 
Department of Industrial and Manufacturing System Engineering 
The University of Hong Kong 
Hong Kong, PR China 
Liang Liang
 
School of Management 
University of Science & Technology of China 
PR China 
and 
Hy Song 
School of Hotel and Tourism Management 
The Hong Kong Polytechnic University 
Hong Kong, PR China 
ABSTRACT 
We consider two competitive tourism supply chains that provide package holidays. Each tourism supply 
chain contains three sectors. The hotel & accommodation providers and the theme park operator, in the upstream, 
provide options for the tour operators, in the downstream, for configuring and marketing package to tourists. All the 
autonomous enterprises in tourism supply chains compete with each other to maximize their own profits. There are 
three types of competition: inter-sector competition between suppliers within a sector, sector competition between 
sectors in the tourism supply chain, and chain competition between different tourism supply chains. A game-
theoretic framework is proposed to study inter-sector competition, horizontal sector competition, and chain 
competition, and leader-follower games for studying vertical sector competition. A number of managerial insights 
for tourism manager are generated and discussed.