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

 
2007 Annual International CHRIE Conference & Exposition 
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decrease. Forth, if managers notice supply chain cost increment in competitive supply chain, they heighten their 
decision and gain more profit. 
Various approaches have been proposed to reduce operational cost of tourism enterprises in many 
literatures. However, proposition 3 releases that profit of one tourism enterprise depends on the whole supply chain 
cost. This supplies a theoretical foundation for nowadays commercial practice: all major European tour operators are 
highly vertically integrated and operate their own travel agencies, airlines, hotels and resorts, incoming agencies, 
and so on (Klemm M. and Parkinson L.2001; Theuvsen 2004). Vertical integration in the tourism industry is 
motivated by attempts to reduce transaction cost which is the cost associated with interactions between tourism 
enterprises involved in exchange mechanisms in TSC.