Game analysis of service quality evolution of online tourism supply chain under PPI participation

Lu Fang, Du Yi-Xin, Luo Ding-Ti and Pan Yong

Current Issues in Tourism, 2025, vol. 28, issue 3, 431-460

Abstract: While platform protection insurance (PPI) is extensively employed as an insurance policy in many sharing platforms, research on its influence on the tourism supply chain is lacking. At this point, the quality of online tourism services has taken the brunt of consumer complaints, and new solutions are desperately needed. So, would PPI's involvement increase the quality of online tourism services? In this paper, by constructing an online tourism supply chain consisting of a Tourism Supplier (TS), an Online Tourism agency (OTA), and consumers, we study the conditions of PPI introduction and its impact on online tourism service quality and analyze the behavioral decisions of online tourism supply chain subjects. The study found that in the tourism market with a small amount of demand change, OTA is more willing to introduce PPI, and TS is more inclined to improve service quality, which then lowers the service cost of TS and the level of disclosure of information, the stronger the willingness of OTA to introduce PPI, and the introduction of PPI in the lower PPI penetration rate of the tourism market has a more promotive effect on the TS with lower service cost.

Date: 2025
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DOI: 10.1080/13683500.2024.2305254

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