Vendor Lock-In (Lock-In Effect)

Nobel laureate Paul Krugman, analyzing platform economics, observed that platforms (like OTAs) derive power from **switching costs**—the cost of leaving is higher than the cost of staying.

What are the OTA’s switching costs? Points, review systems, familiar interfaces, membership tiers. These make guests “too lazy to switch.”

Your move is to **create your own switching costs**—give past guests a reason to stay within your ecosystem instead of restarting their search on an OTA every time.

Flash deals are that wedge.