Alternatives to Booking.com: Understanding platform economics

Given the increasing importance of platforms across the economy, it is necessary for all in positions of authority to understand platform economics 

The Minister in charge of the subject of tourism has said that an alternative to Booking.com is being developed by a Sri Lankan expatriate with the Government’s support to break the platform’s monopoly and thereby bring down the commissions paid by owners of tourist accommodation and generate taxes for the Government. The Minister’s comments display poor understanding of how platforms work. Given the increasing importance of platforms across the economy, it is necessary for all in positions of authority to understand platform economics.

International platforms

International platforms are those where buyers and/or sellers are not limited to one country. In the case of tourism, the sellers of accommodation services are located in Sri Lanka. The buyers may come from anywhere including Sri Lanka, but the most…