Trivago Tests New Marketing Strategy and Products After 'Rough' Fourth Quarter
Skift Take
Trivago CEO Axel Hefer said the company will focus on those things it can control. But the issue for Trivago and some competitors is that there is so much they can't control, including Google's incursions, the rise of Airbnb, and the whims of major online travel agency advertisers when they cut their metasearch spend.
Growing competition from players such as Google, Airbnb, and Trip.com Group, as well as reductions in marketing spend by large online travel agency advertisers and the potential materially adverse impact of a regulatory decision in Australia all led to a Trivago decline in net income for the fourth quarter.
At the end of an earnings call with analysts Wednesday, CEO Axel Hefer encapsulated how he views the company's status: "Just to summarize, the times are rough, we do have a clear plan, and we are focused on what we can control," Hefer said.
The Numbers
In the fourth quarter, Trivago's net income fell 7.8 percent to $3.38 million (euro 3.1 million), but grew 38.7 percent to $18.76 million (euro 17.2 million) for the full year. An adjustment to Trivago's legal reserves because of the Australia legal decisi
