Why have package tour itineraries been homogeneous? Insight from industry subgroup relations

Journal article

Abstract:: In addressing one of the least-researched areas in tourism—the formation of product strategies—this study focuses on the homogeneous package tour phenomenon. It draws on Industrial Organization theory to explore the impact of relationships between industry subgroups on the development of such products. With a specific focus on Chinese package tours to the UK, tour itineraries were firstly mapped to provide a visualization of relative homogeneity. Then, by examining the resource traits of participating firms, two subgroups in the industry were distinguished: tour operators (including wholesalers and retailers) and travel agencies (including Online Travel Agencies). It was found that the determination of product homogeneity involves a combination of the dependent relationship between tour operators; a more independent relationship between travel agencies; and the nature of the interdependence between the two. Strong bargaining power on the part of suppliers and weaker customer power further strengthened product homogeneity.

Files:: Ji_et_al_2022_Why_have_package.pdf

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Language:: English
Keywords:: FFR

tour operators

five forces

travel agencies

industrial organizations

oligopoly
Pubs id:: 1308930
Local pid:: pubs:1308930
Deposit date:: 2022-11-24
ARK identifier:: ark:/29072/ora_c46dd84a70cf4bc7acedf4d70dca797e

Copyright holder:: Ji et al
Rights statement:: © The Author(s) 2022 Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.

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