Tripadvisor Forecasts Experiences and Dining Will Eclipse Hotel Revenue in 2020
Skift Take
When Tripadvisor first started diversifying away from its hotel-auction business several years ago, it was mostly aspirational because its experiences and dining businesses were relatively small. Now there is a bit of revenue meat on those bones. Still, meaningful profits will be slow going in this competitive climate.
If everything goes as Tripadvisor hopes in 2020, it will be a landmark year because for the first time its experiences and dining revenue would surpass that of the company's until-now core hotel metasearch business.
That's the target and it's part of Tripadvisor's goal, as articulated in its fourth quarter earnings call Thursday. The ambition is to redirect its business away from its hotel auction, where Google, stingier online travel agency marketing budgets, and traveler spending inclinations are creating pressure.
Instead of its hotel price comparison service, where online travel agencies and hotels bid for placement in its hotel listings, Tripadvisor will be focusing revenue growth efforts on experiences, dining, hotel business-to-business, and media efforts.
Tripadvisor co-founder and CEO Steve Kaufer told analysts the company expects "our non-hotel auction revenue will drive the lion's share of our future growth. We expect E&D (Experiences & Dining) revenue alone will exceed the hotel auction in 2020. And over the coming years, the relative sizes of
