Coordination for the travel package of flight and accommodation

This paper studies how a hotel and an airline cooperate to provide the travel package of accommodation and flight. Since the hotel and the airline make decisions autonomously, this paper builds Stackelberg game model to solve this travel package problem. It obtains the equilibrium of the cooperation of the hotel and the airline; derives the effects on the equilibrium, of the hotel and the airline capacities, standard price, etc.; analyzes the ones on the total additional revenue and its sharing by numerical study; designs a coordination mechanism to maximize the additional revenue produce by the package.