With hotel metasearch, which replaces users searching for hotels in individual pops-up windows, TripAdvisor gets fewer clicks because users stay on the site longer, but they convert at higher rates for hotel advertisers. But the company is hoping to head for "revenue neutrality" by the end of the year.
TripAdvisor expects to take the “hardest hit” of the year in the third quarter as it works the kinks out of its new hotel-metasearch product. Meanwhile, TripAdvisor is in the “test re-test” phase of its first advertising campaign, which kicked off in nine test markets in June. The campaign appears to have been somewhat aborted, although TripAdvisor denies it.
TripAdvisor CFO Julie Bradley made these points as she provided an update on the company today at the UBS Best of Americas Conference in London. Bradley said TripAdvisor is heading toward “revenue neutrality” in hotel metasearch, meaning it would be back to square one with an increase in cost-per-click rates compensating for a decrease in clicks. TripAdvisor aims to achieve such revenue neutrality by the end of the year, Bradley says.
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