In 1996, Microsoft founded what later became Expedia and spun it off in 1999. It shows that even Bill Gates couldn’t imagine that Expedia would become a $22b market cap giant in less than 20 years. And it demonstrates the power of the platform business model. Once you have a winning concept, you can scale it up massively in short amount of time.
If someone asked you “which company is the biggest one in the travel industry?” what would you answer? Maybe American Airlines? Or the Hilton hotel chain? They are some of the biggest players in this industry. Yet, Booking.com’s parent Priceline surpassed both combined by market cap, easily.
Learn how about Booking.com’s business model in-depth in the most popular strategy tool, the Business Model Canvas.
It will help you understand the platform business model which underpins Booking’s success. It will help you sharpen your innovation knowledge.
Did you know that a typical customer may have several hundreds of digital touch points (or what Google calls micro moments) before they book a hotel and other elements of their trip? How does this customer journey look like? And how are the big travel platform businesses (Booking.com, Expedia, TripAdvisor, Google, Airbnb) accompanying the customer’s journey? What can you learn about the trends and opportunities? These are the questions we are going to look at today.
Platform businesses have entered many industries and in various ways. Demand aggregator platforms like Booking.com, Expedia, TripAdvisor have been vastly successful in the travel industry. Today we are going to look at how these platforms:
(1) guide the digital customer journey,
(2) how this aligns with their predominant customer value propositions and
(3) the monetisation models they apply.
Booking.com, Expedia, TripAdvisor have entered the old-established travel industry with massive success. Learn about the three most important business models that they have applied to overtake the Hiltons and Marriotts in market cap and develop your own innovation ideas you can be proud of