A Unified Business Model Canvas for Digital Intermediaries in Tourism Industry

Abstract

The development of new technologies and in particular the emergence of the Internet and globalization have affected the tourism industry. Tourism industry is constantly confronting global changes and traditional tourist companies are facing a new economy that includes competition from machines and global outsourcing. Internet has become one of the most important communication tools for travellers and tourism companies. It has influenced tourism industry in a variety of ways and resulted in fundamental changes in industry structures and behaviour. Tourism intermediaries adopted new business models based on these changes and provide customers different types of products and services with cut and sliced solutions to meet their needs. These business models get value for all stakeholders in tourism activity. They reduce costs, break away from old patterns of fee arrangements, and increase efficiency. Business Model Canvas (BMC) is a tool that enables companies to articulate their business model. It represents the individual dimensions of the business model and their properties. This study examines the business models of four digital intermediaries such as Airbnb, TripAdvisor, Expedia and Booking.com through Business Model Canvas and proposes a new unified model consisting of the best features of the aforementioned four models. This novel business model presents how stakeholders such as the companies, the customers and the advertisers contribute to the achievement of a network-effect business.