Booking.com’s business model explained in-depth in the most popular strategy tool, the Business Model Canvas.
Online Travel Agencies (OTAs) have become huge players in the travel industry. In fact, Booking.com's parent company, Priceline Group), is the biggest travel company by market capitalisation far exceeding the most envied hotel chains (Marriott, Hilton) as well as airlines (American Airlines, Delta, Southwest).
This shows the strength of the platform business model which the OTAs are. They are what I call demand aggregating platform businesses.
Check out my articles to learn from them and successfully apply the ideas on other industries.
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