I disagree. He defines Booking (as well as both Google and Facebook) as easy mode. From the article:
>the biggest takeaway from my perspective is that Booking was drastically undervalued circa 2011...The truth is that, as I just explained, the company was playing in easy mode... Google, the Super-Aggregator, has been extracting an ever greater share of OTA margins. Indeed, that’s the downside to having a business built on easy mode: anyone else can play the game just as easily.
The key difference between easy and hard mode seems to be layering on top of an existing business, service, or relationship versus creating a new business role, service, or relationship.
Booking was simply a new middleman between consumers and old businesses. It was just a travel agent, but online. There was nothing unique about it or any type of moat to protect it once a bigger competitor like Google decided it wanted that market.
Airbnb was connecting consumers to new businesses that wouldn't have existed without Airbnb. This was done in large part through ignoring the law and it allowed Airbnb to ramp up a business that is much harder to usurp by the likes of Google or Facebook.
I thought that quote was in reference to Airbnb, which was also featured in the preceding tweet about margins. But your interpretation makes more sense, so it looks like Ben is actually characterizing this as Airbnb:hard mode::Booking:easy mode. I concede the point.
The distinction wasn't communicated in the most lucid way so I can certainly see how you could come away with that initial impression. And good on you for simply admitting your harmless mistake. Many people on the internet tend to get defensive and competitive in that position.
>the biggest takeaway from my perspective is that Booking was drastically undervalued circa 2011...The truth is that, as I just explained, the company was playing in easy mode... Google, the Super-Aggregator, has been extracting an ever greater share of OTA margins. Indeed, that’s the downside to having a business built on easy mode: anyone else can play the game just as easily.
The key difference between easy and hard mode seems to be layering on top of an existing business, service, or relationship versus creating a new business role, service, or relationship.
Booking was simply a new middleman between consumers and old businesses. It was just a travel agent, but online. There was nothing unique about it or any type of moat to protect it once a bigger competitor like Google decided it wanted that market.
Airbnb was connecting consumers to new businesses that wouldn't have existed without Airbnb. This was done in large part through ignoring the law and it allowed Airbnb to ramp up a business that is much harder to usurp by the likes of Google or Facebook.