A business model approach towards the understanding of daily deals within Internet distribution systems

Abstract

The business model (BM) approach is making a slow, yet steady footprint in tourism research, can offer a fresh perspective and a viable level of analysis for broader networks of Internet distribution systems (IDSs). To date, the researchers have devoted limited attention to studying the daily deal (DD) providers and their position next to the online travel agencies (OTAs). More importantly, the DD providers developed a unique BM characteristics, which contrary to early predictions, enabled them to proliferate post-recession and maintain their position. The current study uses the BM approach to observe the original dimensions and BM elements, to identify distinct characteristics of generic and niche DD providers, and to benchmark them against the established OTAs. The BM approach enhances the understanding of the overlooked niche DD providers within IDSs. Further, this article provides a comparison of the BM characteristics in IDSs to help facilitate the formulation of a unique value proposition for each of them. Ultimately, the authors acknowledge limited possibilities for cooperation between the providers and discuss future directions of DD and broader IDSs BM transformations.

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