Research On The Government Of The Value Chain For Travel Agencies Based On The View Of Costs

With the awareness of traveling being universal, the tourism industry has been great developed. And this good development situation directly promotes the development of the travel agencies, which is acted as a pillar-based industry in the development of the tourism industry. So, the operation of the travel agencies becomes a business issue. Nowadays, a travel agency operating in the traditional business model mainly faces two kinds of challenges: one is from the inside of the travel agency; the other is from the outside. Inside, the industry itself has a bottleneck in its development. The increasing of the number of travel agencies results in the reduced performance of the consequences of industrial sectors, and the decreasing of market concentration makes the problem of industry fragmentation worse. Outside, the travel agency needs to adapt the swift of the new business environment which contains the three features of the speeded-up in the change of customer demand, the uncertainty of the market and the timing demand. The traditional business model becomes unavailable for the operation of the travel agency. The manager of the travel agencies need another model to solve all the problems mentioned above. Facing all the swifts and the new challenges, the value chain turns off, and helps efficiently. In the model of value chain, the travel agency can create more value and strengthen its core competitiveness.In the model of value chain, using the analysis of drive factor can help to find out the mechanism of value creating. The analysis of drive factor needs to contain both the inner value chain and the outer value chain. Constructing the inner value chain, the travel agency may optimize its internal resource allocation by redesigning the structure of the organization, in order to lower the costs, and make the value create. Constructing the outer value chain with its suppliers, the travel agency may find more ways to reach the goal of value creating by sharing information with its suppliers, optimizing all the resources it can used and re-locating its core competitiveness. The Cournot game model supports the view that the travel agency can create more value in the model of value chain; however, it creates two new kinds of costs in the model: transaction costs and coordination costs. It means that the value chain helps the travel agencies create value; meantime, it brings the possibility of the additional value being lessening by the new costs, even decrease the original value. After the analysis of bounded rationality game model that based on the new costs model, the value chain model is considered to be governed. The governance is containing two kinds: one is ceremonial governance based on the contract, the other is societal governance based on the trust. These two kinds of governances have different mechanisms, but they have the same functions: lower the transaction costs and coordination costs. Choosing the right governance model, the value chain model can help the travel agencies reach the aim of value creation. Here brings in the factor of the willing of providing information by the suppliers to test the effectiveness of the governance of the value chain.Accounting to the hypothesis, empirical analysis and case analysis support the view that choosing the right governance model the value chain model can help the travel agencies reach the aim of value creation. Empirical analysis mainly uses the way of questionnaire survey. Through effective analysis and structural equation, verify the theoretical assumptions of feasibility. Case analysis mainly uses the way of interview and data collecting. The object of the case study is Wuxi Kanghui Tourist. Firstly, summarize the recent operations and the success; secondly, analyze the reason of its success using the model of value chain and the model of governance; at last, demonstrate the hypothesis and get the conclusion that construction of the value chain and bring rational governance can help the travel agencies got the advantages of value creation.