Study on Tourism Supply Chain Coordination with Revenue Sharing Contract

In a tourism supply chain composed of a scenic spot and a travel agency, this paper analyses price strategy of each member in the tourism supply chain through Stackelberg game theory, and studies the relationships between the equilibrium solutions of the scenic spot and the travel agency. Through comparison of every profit, the analysis of the overall profits, the revenue sharing contract is introduced to reduce the channel conflict caused by unfair profit distribution, and to realize the tourism supply chain coordination. The result shows that under the non-cooperative revenue sharing contract the tourism supply chain cannot achieve channel coordination. However, under the cooperative revenue sharing contract the scenic spot and the travel agency both gain their profits more than under decentralized decision without contracts, and realize the Pareto improvement. Meanwhile the tourism supply chain achieves the optimal state.