August 11, 2017

Online travel prepares for long road


One of the key challenges for OTA is that mobile shopper monetizes at less than a third of a desktop shopper. With mobile accounting for more than 40% of hotel shoppers, OTAs are driving more traffic to a channel where they're making less money off the eyeballs.

TripAdvisor said the acceleration in mobile hotel shoppers is a short-term challenge, though it may become a benefit in the long run as people are likely to have more opportunities to shop online.

"On the one hand, it highlights our increasing engagement on this strategic platform," the company said. But less revenue per shopper "exacerbates the near-term revenue growth headwind." The company declined to elaborate on comments it made in the earnings call.

Priceline Group said it is still seeing healthy demand for global travel. On an earnings call Tuesday, Chief Executive Glenn Fogel said the slower growth projections were "consistent with our long-term trends and expectation for the business given our size now."

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Read also "TripAdvisor reports falling earnings, but hopes for better times ahead" and "Priceline reports better-than-expected Q2 earnings"