October 19, 2017
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TripAdvisor's second-quarter results showed some of the pressures that the company faces. Sales were up 8% to $424 million, matching what most investors had expected to see. But adjusted net income fell 5%.
Looking more closely at the numbers, TripAdvisor once again got its best results from outside the hotel arena. Non-hotel revenue jumped 31% and now makes up almost a quarter of the company's total sales. Hotel segment growth was limited to 3%, with stronger performance in click-based and transactional revenue offsetting weaker gains in display-based ads and subscription revenue. Other hotel revenue was down 12%, reflecting weaker performance from non-branded sources.
TripAdvisor retained its popularity in the U.S., seeing its overall fraction of sales rising by 2 percentage points to 58%. European revenue held its own, with the boost domestically coming at the expense of the rest of world segment.
The company kept improving its internal resources. User reviews were up nearly 40% from year-ago levels to hit 535 million. TripAdvisor covers 1.1 million hotels and other accommodations, along with 800,000 vacation rentals, 4.4 million restaurants, and 830,000 activities and tourist attractions. As we've seen in past quarters, vacation rental counts were down even as other reviews became more voluminous.
CEO Steve Kaufer focused on long-term efforts from the company and the progress it made during the quarter. "We successfully launched our streamlined hotel shopping experience," Kaufer said, "and our new multi-year brand advertising campaign and have seen some nice early signs." The CEO also pointed to solid results in click-based revenue.
Get the full story at The Moetley Fool
Read also "Priceline and TripAdvisor shares battered on concerns the online travel market is peaking" and "TripAdvisor turns to advertising to lift its sagging hotel business"
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