The Role of Digitalization in Value Creation and Appropriation in Travel & Tourism: The Case of Booking

Abstract: The advent of the Internet has revolutionized the way companies create value. Recent studies have been focused on the concept of value creation in order to explain the benefits related to the e-business strategies. However, once the value is created, how the parties involved in the transaction protect this value? In addition, what is the moderation effect of the digitalization in the processes of value creation and value appropriation? I examine Booking, an Online Travel Agency (OTA) operating in the travel & tourism industry with the aim to investigate the impact of digitalization. The implications are drawn to enrich the theory of value creation and appropriation and to provide the managerial community with practical knowledge related to partnership strategies.

Key words: digitalization; business model; value; platforms