Evolutionary dynamics of Chinese tourism market extremely low-priced strategies based on wright-fisher processes

Abstract

Extremely low-priced of package tours is an important cause of Chinese tourism market price disorder. Regulating the price of package tours in Chinese tourism market, can solve the problem of Chinese tourism market price disorder. In order to research the reason of extremely low package tours price, consider the stochastic dynamics of N homogeneous mixed travel agency pricing strategies, and each travel agency could choose Extremely low-pricing or regular pricing. Based on Wright-Fisher processes, we obtain the dominant strategy of Extremely low-pricing and regular pricing under the weak selectivity in the package tours price setting, when the travel agency groups are finite. And then further verify these conditions by numerical simulation. The simulation shows that the Price elasticity of tourism demand, the transparency of the tourism market and the degree of government supervision strength have important effects on the stochastic evolution of package tours price setting. Reducing the demand elasticity of tourism market, increasing the transparency of the tourism market and the degree of government supervision strength can make travel agency choose regular pricing and solve chaotic of Chinese tourism market further. Therefore, this paper puts the suggestion of “two increases and one decrease” for the development of Chinese tourism market.