Xun Xu’s Three Minute Thesis

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Coordinating a Tourism Supply Chain Using Pricing and Cooperative Advertising Strategies

 

Xun’s dissertation “Coordinating a Tourism Supply Chain Using Pricing and Cooperative Advertising Strategies” analyzes a tourism supply chain containing a theme park, local hotels, and multiple travel agents using a game theory approach. He specifically focuses on sales of travel packages that include theme park tickets, air travel, and accommodations. His study finds that a vertical cooperative advertising strategy is particularly effective in increasing customer demand and the profit of the whole tourism supply chain. Results demonstrate that profits can be further increased by incorporating pricing of both the hotel rooms and the theme park into a coordinated decision.

Keywords: supply chain management; coordination; cooperative advertising; tourism