Supply chain finance risk management: Payment default in tourism channels

• Yenming Chen ^[2] ; Henry Tsai ^[1] ; Yi-Fen Liu ^[2]
  1. [1] Hong Kong Polytechnic University

     Hong Kong Polytechnic University

     RAE de Hong Kong (China)

     
  2. [2] National Kaohsiung First University of Science and Technology

     National Kaohsiung First University of Science and Technology

     Taiwán

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 24, Nº. 5, 2018, págs. 593-614
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • Based on mechanism design theory on asymmetric information, this study devises a selectable menu of contracts with price discounts and trade credit rates and proposes strategies for mitigating the risk of payment default when a tourism service provider trades with unfamiliar tour operators. Tourism service providers are suggested to remain conservative under a positive economic condition and progressive under a moderate economic condition when engaging in a new business opportunity. However, a fringe level of progressivism may be maintained under a moderate economy and a low-risk environment. The net benefit of tourism service providers increases when the bank rate is high, and the profit of the entire tourism channel increases when the percentage or ability to pay reliable agents is high.