World Panel
Viewpoint19 October 2020

Amazon Explore - Is This Another Attempt to Enter the Travel Industry?

Digital Marketing in Hospitality

— 12 experts shared their view

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This viewpoint was created by
Max Starkov, Adjunct Professor NYU Tisch Center for Hospitality and Hospitality & Online Travel Tech Consultant
Peter O’Connor
Professor of Strategy at University of South Australia Business School

Although largely free from competitors, given its highly fragmented, and in some cases semi-professional nature, the activities/tours/experience sector would be hard, not easy, for Amazon to exploit.

While undoubtedly it could channel some of its vast traffic to such a new product category, and such experiences would be highly complementary to its existing portfolio of lifestyle products, the challenge would be to cost-effectively consolidate supply from the multitude of small, primarily independent, operators that provide the richness sought by customers. Even if it went down the expensive and time-consuming process OpenTable-like route of providing suppliers with equipment and systems to digitize the management of their offer, it would still struggle to attract sufficient quantity and variety of supply to provide a compelling offer for its demanding customer base. And all this trouble for a small percentage commission of a relatively small transaction fee?

Thus my feeling is that this play is more media orientated, where similarly there are strong complements with Prime Video; digital content is easier and cheaper to source, and monetize is easier through advertising and subscription models.  

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