According to Tripadvisor's CEO, Matt Goldberg, the incorporation of generative AI into its Trips travel-planning tool is yielding favorable outcomes.
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TripadvisorTripadvisor’s CEO, Matt Goldberg, mentioned during the company’s third-quarter earnings call that the integration of generative AI into its Trips travel-planning tool is proving to be a profitable venture. He described this summer’s integration as a significant enhancement for Trips. The technology, powered by OpenAI, enables Trips users to create personalized itineraries with the assistance of generative AI. Currently in the beta testing phase, the results are promising. During the first three months of the beta, members who created itineraries exhibited a notably higher return rate within the first seven days compared to members who did not create an itinerary. This heightened return rate persisted throughout the following month.
Tripadvisor has also observed that users who build an itinerary generate approximately three times more revenue than the average Tripadvisor member. Notably, the average member already generates around ten times more revenue than non-members. Goldberg mentioned that they plan to launch the full trip-planning and itinerary product on their mobile app for iOS and Android in the current quarter.
In addition to trip planning, Tripadvisor is utilizing generative AI and machine learning to generate content for its most popular destination pages, such as New York and Paris, by using Tripadvisor reviews and ratings. As a result, users are saving hotels, restaurants, and experiences more frequently, with a 15% increase in the save rate. Pages that feature enhanced content generated by generative AI are experiencing double-digit increases in experiences revenue.
Goldberg also mentioned that Tripadvisor is testing generative AI summaries of hotel reviews. These developments serve as promising proof points for the company’s strategic direction and priorities. He emphasized that their ultimate goal is to translate these advancements into a positive financial impact over time, and they are encouraged by the leading indicators they are observing regarding monetization.
For the third quarter, Tripadvisor reported a 16% increase in revenue to $533 million, with a net income of $27 million, up 8%. Experiences, particularly Viator, was the top-performing segment in Q3, with a revenue increase of 41% to $245 million. TheFork, another experience-focused segment of Tripadvisor, followed with a revenue increase of 20% to $42 million. Tripadvisor Core business saw a revenue of $290 million, marking a 2% increase.
Source: Tripadvisor
