Hotel price comparison site Trivago saw a 21% decline in second-quarter revenues as it cut back on advertising to focus on profitability.
The Expedia-owned metasearch site reported a net loss of $20.7 million for the quarter compared to a loss of $3.4 million in the same period last year. Half-year figures show a cumulative net loss to June 30 of €42.5 million, compared to net income of €4.3 million for the same period in 2017.
Trivago said reduced advertising spend has begun to stablise return on advertising spend but it is experiencing “lower levels of commercialsation as our largest advertisers optimised their spending across regions”.
Rolf Schrömgens, Trivago chief executive and founder, said: “We had to learn and adapt quickly during this challenging quarter, and I believe our business is stronger because of it. We focused heavily on getting back to our core philosophy, concentrating on our product and streamlining our marketing approach in order to improve our ability to drive quality traffic through an improved user experience."
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