From channel integration to platform integration: Capabilities required in hospitality

Abstract

Although channel integration is vital to manage multiple channels in harmony, most research focuses on direct and indirect channels. However, hotels increasingly engage with platforms – an interface bringing together a network of hotels and customers. Channels and platforms have distinct attributes – channels facilitate economies of scale, while platforms foster network effects, i.e., growing the number of hotels and customers for the benefit of both parties. Therefore, we question whether channel integration capabilities are relevant in platform contexts. Furthermore, because platforms have high market power which affects hotel profitability, research is required to explore the specialized platform integration capabilities for optimal hotel performance. Applying grounded theory, we identify five coordinating capabilities for hotels to align their operations with platforms and three learning capabilities for hotels to develop new knowledge to work with platforms. Our contribution is the explication of the similarities and differences between channel integration and platform integration: (i) one set of integration capabilities are similar across channels and platforms – they manifest similarly and serve similar objectives. However, in platform contexts (ii) some integration capabilities satisfy different objectives, (iii) some are wider in scope to achieve a broader set of objectives, and (iv) some are unique and attain new objectives.