March 15, 2017

Why TripAdvisor might be looking out for buyers


After trying really hard to transition itself from a metasearch and travel review leader to a hotel booking platform, it seems TripAdvisor is now saying ‘enough is enough.’

Despite investing aggressively on upgrading the platform, spending in technology and marketing, and roping in some of the best names in online travel, TripAdvisor still couldn’t warm up to users.

Some reports claim that it might be because the booking features on the Instant Booking platform are sometimes confusing or inconsistent, while others suggest that users still viewed TripAdvisor as a travel metasearch and review platform and hence they’d use all those functionalities to select a hotel before booking it through another OTA or directly through the hotel’s website.

Strangely, the suppliers of the travel industry placed more confidence on the Instant Booking platform than the buyers ever did. Hence, both the global OTA leaders, Expedia and Priceline, are present on Instant Booking as are nine out of the top ten hotel chains in the world. Yet, TripAdvisor’s revenue per hotel shopper fell significantly lower than those of its peers due to the lack of traction on the Instant Booking platform. Most of its peers are earning almost 4-5 times more revenue per shopper than TripAdvisor. Instant Booking is the primary contributor of TripAdvisor’s Hotel Revenues that accounts for around 80% of the company’s total revenues.

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