Procedural Fairness Concern In Tourism Supply Chain

With the improvement of social civilization,environmental protection travel has received widespread attention.Green environmental protection development strategies and consumer awareness have promoted the development of the travel industry.In the context of the tourism supply chain,the hotel as tourism supplier realizes that the concept of environmental protection attracts more attention from consumers and gained a higher reputation.In order to increase the sales of hotel rooms,the hotel not only need to make environmental effort,such as using environmentally friendly materials or facilities in the rooms,but also working with online travel agent(OTA)to make operational decisions.The OTA provides environmental sales effort.Some sales effort may be observable,such as placing hotel on their websites,improving their rankings,etc.The sales effort such as offline advertising,product development are difficult for the hotel to observe,but for the OTA,offline environmental marketing to promotes corporate social responsibility to enhance his reputation,thereby driving consumers to spend on the website.The unobservable sales effort is the reason for the OTA's decision on rising commission,which results in the hotel's dissatisfaction.When the hotel is cooperating with the OTA,the decision of the hotel with limited rationality will be influenced by behavioral preference.First,because the OTA mainly operates on websites and has huge user traffic,the OTA has strong bargaining power and dominate the tourism supply chain.As a follower,the hotel has behavioral preference in the face of irrational decisions made by the OTA.The OTA obtains commission from the hotel and makes environmental sales effort(such as offline advertising,product development),however,the hotel cannot observe the OTA's environmental sales effort and the OTA charges high commission.The hotel considers the decision-making process of the OTA's commission to be unfair,which raises the hotel's procedural fairness concern.This paper mainly considers how the dominant OTA makes optimal operational decisions when sustainable hotel has procedural fairness concern.The hotel mainly determines the room price and environmental effort,the OTA determines the environmental sales effort and whether to give the commission decision to the hotel.The procedural fairness concern is characterized by three aspects:engagement,consistency,and transparency.We take the model without hotel's procedural fairness concern as a benchmark and discuss how the OTA chooses the optimal choice scheme of commission decision right when the hotel has procedural fairness concern.The equilibrium solutions show that in the centralized model,there exists a positive minimum environmental cost for both hotel and OTA to achieve the optimal channel profit.In the decentralized model,we find that when the hotel only considers his profit,the OTA always imposes the commission.When the hotel has procedural fairness concern,however,there exists the optimal choice scheme that the OTA give up commission decision right.Then we design a cost-sharing contract for the OTA to alleviate the sustainable hotel's procedural fairness concern,which coordinates this tourism supply chain.Finally,this paper extends the research to traditional hotel and provide suggestions for the transition from traditional hotel to sustainable hotel.