Most of the largest companies in the world are platforms. Most of the growth has been in the last 15 years, driven by the internet, which accelerates their fundamental advantages over the pipeline model.
Online travel agencies are the platform play of the travel industry. The principles are the same as any other sector. So what makes the platform model so much better than what we had before?
- Economies of scale
- Network effects
- Low marginal costs – no inventory to keep
- Innovation by suppliers on the platform. Supplier product or feature innovations become fresh ideas.
- Diversified revenue streams. Additional verticals within travel, payments, media sales etc.
- Optimized data feedback loops
The first two are…





























