Optimal Contract Choice in Sustainable Tourism Supply Chain When Environmental Consumers Exist

With the rapid development of online tourism, a significant number of sustainable hotels have established cooperation with online travel agencies (OTAs) for room sales. This study introduces an analytical framework for a sustainable supply chain model, involving a sustainable hotel and an OTA. Utili...

Full description

Saved in:
Bibliographic Details
Main Authors: Fei Du, Dejun Zou, Jianping Hu
Format: Article
Language:English
Published: SAGE Publishing 2025-01-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440241309982
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:With the rapid development of online tourism, a significant number of sustainable hotels have established cooperation with online travel agencies (OTAs) for room sales. This study introduces an analytical framework for a sustainable supply chain model, involving a sustainable hotel and an OTA. Utilizing Stackelberg game theory, we investigate the two parties’ decision-making processes as they consider contracts for reselling, cost sharing, and revenue sharing. Our analysis reveals that cost sharing and revenue sharing contracts are more effective in motivating the hotel to implement environmental effort than reselling contract. Furthermore, our findings indicate that revenue sharing contract performs best in alleviating double marginalization within the sustainable supply chain by lowering the price of sustainable products. Additionally, revenue sharing contract empowers the hotel and OTA to maximize their profits, making it an optimal choice for the two parties to achieve a win-win outcome.
ISSN:2158-2440