Tripadvisor Takes Greater Pricing Control Over Tours and Activities
Skift Take
Tripadvisor is trying to squeeze more revenue and profits out of its newly restructured tours and activities business. There's a danger, though, that well-funded rivals might undercut Tripadvisor's efforts.
Tripadvisor Experiences is raising commission rates and introducing a single minimum commission rate depending on the type of tour operator and location, the company said in an email on Thursday to tours and activities operators that created confusion for its opaqueness.
The communication (see the email embedded below) to operators states that Tripadvisor Experiences will "adjust the retail price of your product(s) to align with our new commission rates in your destination" although the business unit claimed that the new policy won't impact the compensation operators receive for bookings.
"By doing so, we hope to create a more balanced marketplace with a single minimum commission rate for all operators of your in type in your area," the email said. "A balanced marketplace will allow travelers to focus on the quality and uniqueness of your experience."
Tourpreneur, a podcast abo
