Hotel search engine Trivago, majority owned by Expedia, is ramping up its marketing spend in Australia, Canada, US and New Zealand following early success with television advertising. Expedia CEO Dara Khosrowshahi said “we decided to pour a little bit more fuel on the fire” after the pleasing initial consumer response.
“Trivago has a very strong track record of entering new countries using predominantly television advertising to build strong brands with which they back up with a great product.
“They’re now at 39 countries around the world, they have developed a pretty sophisticated formula on how they do that. And it goes along, like I said, you spend up, you build up a strong brand. And generally, over time, these markets become profitable and you can move on and reinvest into greater expansion.
“We saw, based upon the historic track record of multiple country launches, great traction in the countries we mentioned, U.S., Canada, Australia, New Zealand, including a number of other countries.
“We liked what we saw, the team liked what they saw. And we decided to pour a little bit more fuel on the fire.
“Again, it’s all very measured investments based upon metrics, and they’ve got a strong formula.”