Vertically integrated businesses - These businesses ‘own’ the customer relationship and know their customer well. They collect and analyse data inside the channel, offer multiple products, and have a highly integrated value chain. Examples include Disney and global cruise operators.
Multi-sided ecosystems – These customer-facing branded platforms collect and share data to improve the customer experience. They offer plug-and-play, or ready to use, third party products. Examples include Booking, Priceline, Uber, and Airbnb.
Modular products/supplier businesses - These businesses sell through other companies and platforms, have limited direct connections with consumers, and are often low-cost producers. They may have good knowledge of their own customers, but may rely on other companies to connect and learn about the wider consumer trends. Examples include Airbnb Handsfree, key concierge services and equipment rentals.
Reseller businesses - provide plug and play products and services, adapt to different ecosystems, and constantly innovate in products and services. Modular packages such as car hire or accommodation offered at the end of a sale on an airline site are examples.
Source: Adapted from Weill and Woerner (2015); OECD (2018b); Hagui and Wright (2015)
A number of common findings have been identified in research on digital business model innovation that may help tourism SMEs concretely consider their business model innovation:
Know your market – Customer-facing businesses that put the customer (not the production process) at the centre have been shown to perform better. Research also indicates that companies that derive more than 50% of their income from digital ecosystems understand their customer better, and have higher revenues and profit margins (Weill and Woerner, 2015).
