Restaurants Are About to Repeat the Airline Industry's Biggest Mistake
Author Ryan Volberg argues that the restaurant industry faces a risk similar to airlines' commoditization by online travel agencies two decades ago. Reservation platforms like OpenTable, DoorDash, and American Express may make restaurants comparable commodities, intensifying price competition. He urges restaurants to prioritize customer relationships, use data to recognize high-value guests, and provide personalized experiences to avoid platform control.
Impact and considerations
For hospitality and restaurant industries, platformization risks losing customer relationships to third parties and compressing margins. The article emphasizes differentiation and direct customer relationships, warning against relying solely on discounts and urging data-driven personalization.
Key points
- Online reservation platforms may commoditize restaurants, leading to price competition.
- US airline online booking share rose from 7% in 1999 to 30% in 2002, and fares fell.
- More than 30 restaurant chains entered bankruptcy protection in 2024; casual dining faces challenges.
- 64% of full-service customers say experience is more important than price, yet 47% of operators plan more discounts.
- Restaurants should use data to recognize high-value guests and provide personalized service to avoid platform control.
Sources and time
- Primary source
- Hospitality Technology
- Other sources
- 0
- First source publication
- 1 Sept 2026, 03:34
- Page published
- 3 Sept 2026, 23:02
- Last updated
- 1 Sept 2026, 03:34
- Original links
- Hospitality Technology：Restaurants Are About to Repeat the Airline Industry’s Biggest Mistake | Hospitality Technology (opens in a new tab)Primary source · en · Published 1 Sept 2026, 03:34