Tripadvisor's New Subscription Plan Geared to Address Major Flaw in Its Instant Booking Initiative
Skift Take
Tripadvisor is trying to become a much larger transaction site again. But here are two challenges: Will the benefits be so superior to discounts you can get for free booking on HotelTonight or elsewhere? And hotels will get a break on commissions, but do they really want to train guests to book on Tripadvisor?
Tripadvisor hopes its new Tripadvisor Plus subscription program, which CEO Steve Kaufer said has parallels to Amazon Prime, will make it a transaction site again and address the shortcomings of its previous attempt to become one.
In 2017, after a multiyear effort, Tripadvisor reversed gears and moved away from its Instant Booking initiative, which had it trying to be a hotel-booking site instead to sending its customers off to other online travel agency and hotel sites to book their stays.
In Tripadvisor's fourth quarter and full-year 2020 earnings call Friday, Kaufer told analysts that previously Tripadvisor did not offer an "additional compelling value proposition" to entice travelers to book on Tripadvisor, but the perks and benefits of Tripadvisor Plus, the new $99 per year membership plan, will do so.
In other words, travelers have plenty of options of where to book their hotels and activities so prior to the membership p
