Evolutionary game analysis of online travel agency and hotels' pricing strategy

This paper built a local tourism supply chain by taking the accommodation services as an example based on the present situation of the online travel industry, and described the co-opetition relationship between online travel agency and hotels in detail. In order to explore the coordination mechanism considering longitudinal and horizontal co-opetition relationship between online travel agency and hotels, two basic models for the longitudinal competition and cooperation relationship were first built. Then, by adding horizontal competition between hotels, we established the evolutionary game, and discussed the ESS in different situations. At last, we provided a numerical analysis to illustrate the rationality and efficiency of the model, and made some suggestions for online travel agency according to the result.