TripAdvisor reports growth in hotel and non-hotel segments

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TripAdvisor's total revenue rose 8% in the fourth quarter of 2018 to $346 million and grew 4% for the full year to $1.62 billion.

In prepared remarks, CEO Steve Kaufer said the company "reinvigorated hotel segment profitability while growing experiences and restaurants, two key strategic investment areas."

Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the fourth quarter was up 38% to $87 million and for the full year it grew 27% to $422 million.

TripAdvisor said it now has 2.2 million accommodation listings on its site, including 1.3 million hotels, inns, bed and breakfasts and specialty lodging and 875,000 rentals.

Kaufer said the new TripAdvisor publishing platform that launched in November 2018 is reinforcing the brand as "the de facto hub for travel planning."

In the coming year, TripAdvisor's Core Experience team, which built the new platform, will develop strategies to "serve members, drive loyalty and increase monetization across our verticals."

As part of that, Kaufer says the company will diversify the brand advertising message to highlight TripAdvisor's "holistic consumer value proposition," rather than focusing on its hotel price comparison capabilities.

TripAdvisor's non-hotel segment now includes one million activities and experiences and 4.9 million restaurant listings.

The company says revenue from this segment grew 27% for the full year 2018 to $458 million and now account for 28% of total revenue -- up from 23% in 2017.

When rentals are excluded from this segment, non-hotel revenue grew even more -- 40% for the full year. Much of that is tied to TripAdvisor's acquisition of Bokun in 2018. The TripAdvisor platform had 83,000 bookable experience products at the end of 2017 and 159,000 at the end of 2018, an increase of more than 90%.

Quoting Phocuswright research that the tours and activities sector will grow to $129 billion in 2020, Kaufer said TripAdvisor is "stepping on the gas in product, supply and marketing."

As part of that, the company is adding development and sales staff across the United States, Europe and Asia-Pacific and adding non-English content and local payment options.
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Source: PhocusWire

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