November 08, 2018

TripAdvisor hotel revenue drops 2% in Q3


Hotels continued to weigh on TripAdvisor's overall sales results. It took a 20% jump in non-hotel revenue to keep top-line figures moving higher.

Yet from a profit standpoint, the situation was reversed, with adjusted pre-tax operating earnings rising 94% for the hotel segment but picking up just 7% on the non-hotel side of the business.

Looking more closely at the hotel segment, display-based ad and subscription revenue was the sole bright spot, enjoying a 7% rise in revenue. A 1% drop in transaction and click-based ad sales was discouraging, but it was still six percentage points more favorable than TripAdvisor managed in the second quarter.

Other revenue, including money from branded websites and other miscellaneous sources, once again posted big declines of more than 25%, costing TripAdvisor the chance to see its overall hotel business achieve sales growth at the segment level.

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Read also "TripAdvisor’s experiences and restaurants businesses outpace vacation rentals" at Skift