Tripadvisor is seeking "deeper engagement" with customers.
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TripadvisorOn Tuesday, August 6th, Tripadvisor announced a modest 1% revenue increase for the second quarter, it also revealed a new feature allowing members to book hotel stays directly through its app, thanks to a partnership with Hopper Technology Solutions (HTS). This announcement coincided with CEO Matt Goldberg’s earnings call, where he shared that the company earned $497 million in revenue for the quarter, just slightly above last year’s $494 million, leading to a net income of $24 million.
The Experiences platform Viator led the growth with a 13% increase in revenue, reaching $244 million from April to June. Meanwhile, TheFork saw an 11% increase to $42 million. However, the Tripadvisor brand experienced a 10% decline, though it still accounted for $250 million, more than half of the company’s total revenue.
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Image: Tripadvisor
Goldberg highlighted the progress in Tripadvisor’s various segments, noting that this was the first quarter where all three segments contributed to profitability. He emphasized the company’s strategy to enhance user engagement through new product features and a stronger membership program. Goldberg noted that deeper user engagement leads to higher monetization, not just through clicks but also through more valuable transactions.
While Goldberg did not specifically mention the new in-app hotel booking service during his presentation, company president Kristen Dalton explained that it aims to further engage users by integrating hotel bookings with Tripadvisor’s research and planning tools. Dalton emphasized that the new service builds on the AI Trip Builder introduced earlier this year and is a critical part of enhancing the user journey. The partnership with HTS allows Tripadvisor to focus on creating an exceptional user experience while leveraging HTS’s technology and hotel inventory to scale quickly.
The in-app hotel booking feature, available only to logged-in Tripadvisor members, is part of the company’s strategy to strengthen its free membership program by offering in-app rewards and incentives. This follows Tripadvisor’s decision earlier this year to discontinue its Tripadvisor Plus subscription program in favor of the free plan.
A decade ago, Tripadvisor introduced “Instant Booking” for hotels on its app and website, partnering with Expedia Group and Priceline to expand its offerings. The new partnership with HTS marks a return to direct hotel bookings, which Lorraine Sileo, a senior analyst at Phocuswright Research, sees as a sensible move. She noted that if banks and retailers can sell travel for additional revenue or customer value, it makes sense for Tripadvisor to offer similar services to its users, with minimal risk and investment.
Source: Tripadvisor
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