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Cooperative Service Contract for Tour-Guides Service Outsourcing Under Dual Principle-Agent
Author(s) -
Fang Lu,
Jiangshun Zhang,
Dandan Wang,
Xinmin Zhou
Publication year - 2016
Publication title -
revista tecnica de la facultad de ingenieria universidad del zulia
Language(s) - English
Resource type - Journals
eISSN - 2477-9377
pISSN - 0254-0770
DOI - 10.21311/001.39.4.09
Subject(s) - outsourcing , dual (grammatical number) , service (business) , business , operations management , process management , engineering management , engineering , marketing , art , literature
During tour-guides service outsourcing, tourists entrust travel agencies with tourism service, and travel agencies entrust tour-guides service providers with part of tourism service. Due to asymmetric information, tourists‟ experience and satisfaction cannot achieve their expected targets. To solve it, cooperative service contracts are designed on tour-guides service outsourcing with a travel agency as dual principal-agent roles, and parameters of cooperative contracts and tourists‟ revenue are analyzed by mathematical models and numerical simulation. Research results show that contracts with reward-penalty mechanism added to revenue sharing can effectively increase partners‟ revenue and improve tourists‟ satisfaction; but too high intensity of reward-penalty can only ensure revenue of tourists and travel agencies, which, however, damages revenue of service providers, failing to guarantee long-term cooperation during tour-guides service outsourcing.

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