Restaurants Are About to Repeat the Airline Industry's Biggest Mistake
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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.
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- Hospitality TechnologyRestaurants 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.