TripAdvisor Struggles To Convert Visits Into Bookings – Consumers Spending Less On Site

Logo - TripAdvisorTripAdvisor may be the world’s most popular travel website at 350m unique visitors a month – but the actual business is going through a rough patch with net income for the first six months of 2016 almost half what it was in 2015: US$62m compared with US$121m. 

President and founder Steve Kaufer urged investor patience. “We continue to play the long game as we navigate our business to deliver the best user experience in travel,” he said.

The main issue is that the global roll-out of Trip Advisor’s instant booking accommodation product (now complete) has resulted in less revenue per “hotel shopper” not more.

In other words, consumers are spending less with TripAdvisor, the reverse of what was supposed to happen.

TripAdvisor’s hotel revenue for the three months to June 30, 2016, fell -8% year on year, while adjusted pre-tax earning dropped even further; – 16%.

The company’s Chief Financial Officer, Ernst Teunissen, the poor results also reflect “the lower profit margin from significant investments we are making in pursuit of our key inititaives.

“While recent events cloud our near-term visibility, 2016 remains an important year as we navigate our way towards sustainable growth and profitability.”

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7 thoughts on “TripAdvisor Struggles To Convert Visits Into Bookings – Consumers Spending Less On Site”

          1. …. but not in our backyard.
            The main point which is related to their disappointing year is they could operate their own booking platform and not have to share the commission. Who’s website is it?

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