Platform versus Pipeline Business Models: Are Airbnb and Marriot Right to Move into Each Other’s Turf?

Jochen Wirtz

Chapter 30 in Services Marketing:People, Technology, Strategy, 2021, pp 606-608 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The general view is that platforms are somehow in a winner-takes-it-all market and therefore justify enormous valuations, especially when compared with their pipeline counterparts. However, to continue its fast growth, Airbnb diverted from its pure peer-to-peer (P2P) strategy and has been adding owned room capacity. At the same time, Marriott added P2P platform-sourced rooms to its marketing and distribution channels. The question the senior management of both companies needs to address is what it takes for them to be successful in each other’s turfs.

Keywords: Services Marketing; Service Operations; Marketing; Consumer Behavior; Positioning Services; Service Process; Pricing; Revenue Management; Service Environment; Service Advantage; Customer Relationships; Customer Loyalty; Complaint Handling; Service Recovery; Service Excellence; Service Quality; Service Productivity; Service Leadership (search for similar items in EconPapers)
JEL-codes: L8 M3 M31 O14 (search for similar items in EconPapers)
Date: 2021
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