nice post. what do you think of trains as a market? my issue is that unlike flights, trains in europe are controlled quite tightly by national players, this making the need for a marketplace much less.
Airbnb is the leading platform in alternative accommodations, while Booking has a strong position in traditional hotels and travel bundling. eDreams appears to compete primarily with Booking, but what differentiated advantage does it offer that Booking lacks?
The online travel agency business seems to have limited barriers to entry and weak competitive moats, with strong network effects and scale advantages favoring a small number of dominant players. In that context, the market could become increasingly concentrated around leaders such as Airbnb in alternative accommodations and Booking in hotels and broader travel services. eDreams may therefore face challenges in establishing a durable competitive advantage against these larger platforms-> winners takes it all?
Prime subscription members have access to the lowest cost in travel as eDreams gives the booking fees (take rate) to prime subscribers. There is no way for booking to compete with eDreams on price without destroying their own business model.
nice post. what do you think of trains as a market? my issue is that unlike flights, trains in europe are controlled quite tightly by national players, this making the need for a marketplace much less.
Apparently, they are de-regulating.
Airbnb is the leading platform in alternative accommodations, while Booking has a strong position in traditional hotels and travel bundling. eDreams appears to compete primarily with Booking, but what differentiated advantage does it offer that Booking lacks?
The online travel agency business seems to have limited barriers to entry and weak competitive moats, with strong network effects and scale advantages favoring a small number of dominant players. In that context, the market could become increasingly concentrated around leaders such as Airbnb in alternative accommodations and Booking in hotels and broader travel services. eDreams may therefore face challenges in establishing a durable competitive advantage against these larger platforms-> winners takes it all?
Prime subscription members have access to the lowest cost in travel as eDreams gives the booking fees (take rate) to prime subscribers. There is no way for booking to compete with eDreams on price without destroying their own business model.