Evolutionary Game Analysis Of Online Travel Agency And Hotels' Pricing Strategy In The Tourism Supply Chain

With the development of Internet, the online travel market scale gained great growth. From the perspective of supply chain, tourism industry is an integrated industry which include accommodation, catering, transport, shopping, entertainment, tourism, and other products and services. There exists horizontal co-opetition relationship within the same level of suppliers, and also exists longitudinal coopetition relationship between different levels of enterprises. For online travel agencies, as a bridge of the tourism service providers and tourist in the tourism supply chain, at the same time, they need to cope with competition from online travel search platform, on the other hand, they have to deal with competitive pressure from non-standard accommodation booking platforms. So in this paper, by applying the classical game theory and evolutionary game theory to provide an effective mechanism can coordinate the coopetition relationship with the tourism service providers for the online travel agencies,which can help the online travel agencies attract more users with the cost-effective tourism products, and expand market share, enhance the brand effect.This paper mainly includes the following three aspects: First, on the basis of tourism supply chain structure, combining with the characteristics of online travel, and making the online travel agencies as the core, build the part tourism supply chain structure taking the accommodation services for example, and describes in detail the competition relationship between the online travel agencies and hotels. Second, establish the decentralized pricing model in the competitive relationship which aim to maximize their interest and the joint pricing model in the cooperative relationships which aim to maximize the alliance's interest between the online travel agencies and hotels. And in the joint pricing model, distribute the interests in the process of cooperation with shapley value, and also put forward the information cost factors to ensure the cooperation of online travel agencies and hotels can increase customer satisfaction as much as possible. Third, based on the longitudinal co-opetition relationships between the hotel and online travel agencies, add with the horizontal competition relationship between hotel and other hotels to establish the evolutionary game theory, analysis the evolutionary stable strategy of the hotels' pricing strategy with replicator dynamics equation, and through numerical example analysis to verify the validity and rationality of the model and then put forward some suggestions for online travel agencies.