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

In: Services Marketing People Technology Strategy

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  • Jochen Wirtz

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.

Suggested Citation

  • Jochen Wirtz, 2021. "Platform versus Pipeline Business Models: Are Airbnb and Marriot Right to Move into Each Other’s Turf?," World Scientific Book Chapters, in: Services Marketing People Technology Strategy, chapter 30, pages 606-608, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781944659806_0030
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    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;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • L8 - Industrial Organization - - Industry Studies: Services
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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