The paper "KAYAK’ s Multi-Sided Market" is an outstanding example of a marketing case study. This paper seeks to delineate as well as critically evaluate KAYAK’ s Multi-sided market. Besides, the paper will also highlight the different types of intellectual property that are significant to KAYAK. Established in 2004, KAYAK is an international firm, which is primarily focused on improving the online travel services. The company is charged with searching other travel sites such as airlines websites, online travel agencies, hotel as well as rental car websites. Upon searching, it shows its potential customers all the information that they need in order to make the best travel decision.
Since the company’ s tech team is always looking for ways to improve the planning as well as trip management, KAYAK offers a diversity of tools as well as features such as Price Forecast, KAYAK Trips as well as its award-winning mobile app known as KAYAK. As of July 2016, KAYAK was available in more than forty international sites as well as twenty languages. Every year, the firm often processes more than 1.6billion queries associated with travel information.
Besides, the company’ s mobile app has been downloaded over forty million times. KAYAK’ s Multi-Sided Market Notably, economics, as well as technology associated with Web-based businesses, have resulted in an ecosystem that comprises of interconnecting multi-sided platform businesses. KAYAK is an example of a multi-sided platform, which is based on a software platform technology that offers services to consumers as well as other businesses that have established websites. As Weyl (2010) posits, a multi-sided market business often gives support that accelerates transactions as well as interactions among two or more parties that it serves.
Accordingly, parties of either side often benefit each other in the long run. Tentatively, KARAK's platform has positive indirect network impacts amongst the different patron groups such as the travel companies and those that place ads on the company's site. According to Weyl (2010), multi-sided markets are often described as markets in which one or various platforms often allow for connections between end-users, as well as try to get multiple sides on board by aptly charging each side. A good example is KAYAK, which manages to bring onboard customers who would want services from a travel company such as an airline as well as a hotel.
Equally, KAYAK manages to bring onboard hotel and travel companies on the platform such that they take the opportunity of advertising themselves with regards to what the offer and the prices at hand. It is significant to note that a considerable number of real-world firms often make choices with regards to determining how close or far they are from a multi-sided economic framework or model; these choices often carry major economic trade-offs. For example, from the case study, KAYAK began as a pure one side-sided business but has over time moved to the concept of multi-sided platforms, whereby it now even allows for third parties to carry out ads on its website as the company has a considerable number of viewers or users who visit KAYAK’ s website.
KAYAK enables customers to directly contact travel and tours companies through the company’ s website.
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Weyl, E. G. (2010). A price theory of multi-sided platforms. The American Economic Review, 100(4), 1642-1672.