Perspectives

The Expedia-ization of Healthcare

What Travel Sites Teach Us About the Future of Care

For decades, Americans have been told to “shop for healthcare”—but given none of the tools or transparency needed to do so. While nearly 50% of healthcare spending is theoretically shoppable, few consumers can act like real shoppers in today’s system.

But perhaps the challenge isn’t about consumer willingness. Perhaps it’s about infrastructure.

To understand where healthcare may be heading, we need only look at an industry that was similarly opaque and fragmented: travel.

Booking a Trip vs. Navigating Healthcare

Before Expedia, Priceline, and Kayak, planning travel was a messy, manual, and expensive process. You might book a flight through one vendor, a hotel through another, then rent a car separately—and hope the pieces aligned. You had no view of the total cost, and price comparison was nearly impossible.

This mirrors the modern U.S. healthcare experience:

• Consumers receive fragmented services (e.g., imaging, surgery, rehab)
• Each comes from a different billing entity
• Pricing is unavailable in advance
• Coordination is left to the patient

Just as Expedia changed travel by bundling the entire experience—from flights to hotels to insurance—new healthcare models are emerging that bundle full episodes of care, offering pre-packaged procedures with guaranteed pricing and provider comparisons.

From Fee-for-Service to Episode Bundles: Enabling a True Marketplace

What travel sites enabled wasn’t just convenience. They created:

• Pricing transparency
• Consumer agency
• Market competition based on value

In healthcare, traditional PPOs, reference-based pricing models, and narrow networks have offered partial solutions, but often still present patients with:

• A lack of full cost visibility
• Surprise billing
• Limited or unclear provider choice

By contrast, episode-based models—organized around the full scope of a patient’s need, like a knee replacement or maternity care—begin to replicate the predictability and choice travel platforms made standard.

They do this by:

• Defining the full scope of services in advance
• Establishing an all-in price
• Allowing shopping among provider groups, based on quality and location

This isn’t just a new pricing model. It’s a shift in how healthcare is consumed.

The Psychology of Choice and the Power of Packaging

In behavioral economics, we know that framing matters. People are more likely to act when:

• Options are clear
• Prices are known
• Choices are simplified

Travel sites didn’t just lower prices. They reduced friction. They made it possible to act on desire with confidence. That same behavioral shift can occur in healthcare—if consumers are given a single, bundled price for a procedure and a curated set of options to compare.

This shift also creates a more competitive provider market. Just as hotels compete on ratings, amenities, and price, so too can provider groups compete on outcomes, convenience, and patient experience—if the tools to compare them are standardized.

The Employer Angle: From Budget Guesswork to Predictability

For employers, this transformation is not just about consumer satisfaction—it’s about cost control.

Fee-for-service plans make it nearly impossible to forecast the true cost of care across a workforce. Like trying to predict the total cost of a corporate trip when you only know the flight cost.

With episodes of care, employers:

• Know the full price before care begins
• Can compare options regionally or nationally
• Lock in multi-year budgets with more precision

It’s the difference between budgeting for experiences versus budgeting for transactions.

The Path Forward: Build the Infrastructure for Consumerism

The lesson from travel is clear: consumerism doesn’t work without infrastructure.

If we expect individuals to act like healthcare shoppers, they need:

• Bundled pricing
• Comparative tools
• Digital front ends that simplify complexity
• A benefit design that rewards proactive choices

We don’t need consumers to become healthcare experts—we need the system to become more navigable. And that requires repackaging care into something that feels like planning a trip—not solving a mystery.