Low-carbon tourism supply chain network optimisation with vertical and horizontal cooperations

Abstract

We consider a low-carbon tourism supply chain (LTSC) network composed of two low-carbon scenic spots (LSSs) and two travel agencies (TAs). The LSSs as leaders and the TAs as followers play Stackelberg games in the vertical direction. Meanwhile, the competing LSSs play Nash game to determine emission reduction efforts and ticket prices, and the competing TAs play Nash game to conduct retail prices. We establish four kinds of differential game models with different LTSC network structures, derive the equilibrium decision-makings of the LSSs and TAs, and explore the influences of competition or cooperation at vertical and horizontal level of the LTSC network members on the equilibrium solutions of the LSSs and TAs, low-carbon level of tourism products and performance of the LTSC network. Then, we find that the low-carbon preference of tourists improves the low-carbon level of tourism products, while the competition intensity between the LSSs leads to the decrease of the low-carbon level of tourism products. In addition, the results indicate that horizontal or vertical cooperations among the LTSC network members are not always conducive to the performance of the whole LTSC network. Only when the sensitivity of tourist demand to retail price meets certain conditions, these cooperations can develop tourism products with higher low-carbon level and bring higher revenues.