Platformization in Tourism: Typology of Business Models, Evolution of Market Concentration and European Regulation Responses

The paper serves to discuss the evolution of platform business models in tourism, the dynamics of market concentration, and regulatory interventions. We present the historical timeline of digitalization in tourism distribution models, starting from the Global Distribution Systems (GDS), and continui...

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Main Authors: Maja Turnšek, Vladimir Radivojević
Format: Article
Language:English
Published: MDPI AG 2025-01-01
Series:Platforms
Subjects:
Online Access:https://www.mdpi.com/2813-4176/3/1/1
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author Maja Turnšek
Vladimir Radivojević
author_facet Maja Turnšek
Vladimir Radivojević
author_sort Maja Turnšek
collection DOAJ
description The paper serves to discuss the evolution of platform business models in tourism, the dynamics of market concentration, and regulatory interventions. We present the historical timeline of digitalization in tourism distribution models, starting from the Global Distribution Systems (GDS), and continuing with Online Travel Agencies (OTAs) and their market concentration in the duopoly of Expedia Group versus Booking Holdings Group. We continue to discuss the slow, yet uncertain, breaking of the global duopoly in the travel platforms market. On the one hand, the duopoly is challenged from the “bottom up”, where Airbnb is the most successful example, riding on the wave of popularity of the ideals of the “sharing economy” and the aftermaths of the 2008 global financial crisis. On the other hand, the duopoly is challenged from the “top down”—the most powerful digital players have started to extend their operations to tourism. The second section of the paper identifies three current areas of platformization in tourism operations—distribution, promotion and HRM. We analyze available industry and public statistics indicators in Europe for each of the three dimensions. Finally, we discuss the regulatory responses to the market concentration of travel distribution platforms. Although the challenge of market concentration is a global issue, and the threats are the same in many countries, we limit the discussion of regulation to the European context. In conclusion we discuss the possibilities of future development, and point to the threat of the further acceleration and interconnection of platformization and market concentration in the travel business.
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spelling doaj-art-a99fc45b780e4c80a4166b0ed594e5e72025-08-20T01:48:54ZengMDPI AGPlatforms2813-41762025-01-0131110.3390/platforms3010001Platformization in Tourism: Typology of Business Models, Evolution of Market Concentration and European Regulation ResponsesMaja Turnšek0Vladimir Radivojević1Faculty of Tourism, University of Maribor, Cesta prvih borcev 36, 8350 Brežice, SloveniaFaculty of Economics, University of Priština in Kosovska Mitrovica, Kolašinska 156, 38220 Kosovska Mitrovica, SerbiaThe paper serves to discuss the evolution of platform business models in tourism, the dynamics of market concentration, and regulatory interventions. We present the historical timeline of digitalization in tourism distribution models, starting from the Global Distribution Systems (GDS), and continuing with Online Travel Agencies (OTAs) and their market concentration in the duopoly of Expedia Group versus Booking Holdings Group. We continue to discuss the slow, yet uncertain, breaking of the global duopoly in the travel platforms market. On the one hand, the duopoly is challenged from the “bottom up”, where Airbnb is the most successful example, riding on the wave of popularity of the ideals of the “sharing economy” and the aftermaths of the 2008 global financial crisis. On the other hand, the duopoly is challenged from the “top down”—the most powerful digital players have started to extend their operations to tourism. The second section of the paper identifies three current areas of platformization in tourism operations—distribution, promotion and HRM. We analyze available industry and public statistics indicators in Europe for each of the three dimensions. Finally, we discuss the regulatory responses to the market concentration of travel distribution platforms. Although the challenge of market concentration is a global issue, and the threats are the same in many countries, we limit the discussion of regulation to the European context. In conclusion we discuss the possibilities of future development, and point to the threat of the further acceleration and interconnection of platformization and market concentration in the travel business.https://www.mdpi.com/2813-4176/3/1/1travel platformsmarket concentration regulationonline travel agencies (OTA)Global Distribution Systems (GDS)ExpediaBooking.com
spellingShingle Maja Turnšek
Vladimir Radivojević
Platformization in Tourism: Typology of Business Models, Evolution of Market Concentration and European Regulation Responses
Platforms
travel platforms
market concentration regulation
online travel agencies (OTA)
Global Distribution Systems (GDS)
Expedia
Booking.com
title Platformization in Tourism: Typology of Business Models, Evolution of Market Concentration and European Regulation Responses
title_full Platformization in Tourism: Typology of Business Models, Evolution of Market Concentration and European Regulation Responses
title_fullStr Platformization in Tourism: Typology of Business Models, Evolution of Market Concentration and European Regulation Responses
title_full_unstemmed Platformization in Tourism: Typology of Business Models, Evolution of Market Concentration and European Regulation Responses
title_short Platformization in Tourism: Typology of Business Models, Evolution of Market Concentration and European Regulation Responses
title_sort platformization in tourism typology of business models evolution of market concentration and european regulation responses
topic travel platforms
market concentration regulation
online travel agencies (OTA)
Global Distribution Systems (GDS)
Expedia
Booking.com
url https://www.mdpi.com/2813-4176/3/1/1
work_keys_str_mv AT majaturnsek platformizationintourismtypologyofbusinessmodelsevolutionofmarketconcentrationandeuropeanregulationresponses
AT vladimirradivojevic platformizationintourismtypologyofbusinessmodelsevolutionofmarketconcentrationandeuropeanregulationresponses