Tripadvisor recently announced a small increase in second-quarter revenue, but it was not the only news coming from the company. The introduction of a new service that allows members to book hotel stays directly within the app was revealed on the same day. This addition to the platform comes as a result of a partnership with Hopper Technology Solutions (HTS) and aims to enhance user engagement.
The revenue for the second quarter came in at $497 million, just slightly higher than the $494 million recorded for the same period last year. The net income for the company was $24 million, with different segments showing varying levels of growth. Viator, the experiences platform, saw a significant increase of 13% year over year, reaching $244 million in revenue. On the other hand, TheFork had an 11% increase to $42 million, while the Tripadvisor brand itself was down by 10%, contributing $250 million to the company’s overall earnings.
User Engagement Strategy
CEO Matt Goldberg highlighted the importance of user engagement during the earnings call. He emphasized the company’s strategy to drive deeper engagement with users by introducing new product enhancements for its app and membership program. This approach aims to increase monetization opportunities, particularly by targeting more engaged users. By offering hotel bookings within the app, Tripadvisor is consolidating its research and booking experience into an integrated trip planning platform, encouraging users to stay on the platform longer.
To facilitate in-app hotel bookings, Tripadvisor partnered with HTS, a global travel technology provider that will power both hotel bookings and inventory within the app. This partnership enables Tripadvisor to focus on creating a seamless user experience while leveraging HTS’s technology to scale more efficiently. Hopper president Dakota Smith expressed confidence in the partnership’s ability to provide users with a smart and convenient way to book travel, thereby enhancing the overall user experience on Tripadvisor.
The in-app booking experience is currently available only to logged-in Tripadvisor members, a move that aims to enhance the free membership value proposition. By exploring in-app rewards and incentives, Tripadvisor seeks to deepen relationships with its most engaged members. This strategy is part of the company’s broader efforts to improve user engagement and drive long-term sustainable growth in revenue and profit.
Industry Insights
Industry analysts see the move towards direct hotel bookings as a logical step for Tripadvisor. Lorraine Sileo, a senior analyst at Phocuswright Research, compared Tripadvisor’s strategy to recent partnerships made by HTS with banks and credit card companies. This shift towards offering direct booking options aligns with current trends in the travel industry, where other non-travel companies are also venturing into selling travel to provide additional value to customers.
Tripadvisor’s introduction of in-app hotel bookings marks a significant step towards improving user engagement and driving revenue growth. By partnering with HTS and focusing on enhancing the user experience, Tripadvisor is poised to deepen relationships with its members and create a more integrated trip planning platform. As the travel industry continues to evolve, offering direct booking options within the app positions Tripadvisor as a key player in the market.
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