Tripadvisor recently announced a second-quarter revenue increase of 1%, along with the rollout of a new service that allows its members to book hotel stays directly within its app. This service comes as a result of a partnership with Hopper Technology Solutions (HTS). The total revenue for the quarter was $497 million, slightly higher than the $494 million from the same period last year. The growth in revenue helped push the company to a net income of $24 million. Viator, Tripadvisor’s experiences platform, saw the biggest quarterly increase with revenues of $244 million, a 13% jump year over year. TheFork experienced an 11% increase to $42 million, while the Tripadvisor brand itself was down 10% for the period. Despite the decrease, Tripadvisor’s brand still accounted for over half of the company’s revenue.
Tripadvisor’s CEO, Matt Goldberg, emphasized the importance of driving deeper engagement with users through new product enhancements for its app and membership program. He highlighted the company’s aim to increase monetization by keeping travelers engaged on the platform, thus providing more opportunities for higher-value transactions. The introduction of hotel bookings within the app is a strategic move to enhance user engagement, creating an integrated trip planning platform. This move aims to make the Tripadvisor app an essential tool for its most engaged members, offering a seamless booking experience for hotels.
To facilitate the in-app hotel booking service, Tripadvisor partnered with HTS. This global travel technology provider will power both hotel bookings and inventory in the Tripadvisor app, offering an end-to-end planning experience. HTS will act as the merchant of record for the bookings and provide white-label customer support. The partnership aims to enhance user experience while leveraging HTS’s technology and hotel supply to scale the booking service rapidly.
The in-app booking experience is exclusively available to logged-in Tripadvisor members. Through this service, Tripadvisor plans to enhance its free membership value proposition by exploring in-app rewards and incentives. This approach offers further opportunities to deepen relationships with its most engaged members. Earlier this year, the company discontinued its Tripadvisor Plus subscription program in favor of the free membership plan, aligning with its goal to provide members with added value through enhanced features like in-app hotel bookings.
Analysts like Lorraine Sileo from Phocuswright Research view Tripadvisor’s foray into direct hotel booking as a logical step in the company’s evolution. The partnership with HTS aligns with recent trends in the travel industry, where banks and retailers are increasingly offering travel services to customers. By providing in-app hotel bookings, Tripadvisor aims to cater to the evolving preferences of travelers and capitalize on the potential for incremental revenue. The move is expected to strengthen Tripadvisor’s position in the market and enhance its value proposition for users.
Tripadvisor’s introduction of in-app hotel bookings represents a strategic shift towards providing a comprehensive travel planning experience for its members. The partnership with HTS, coupled with a focus on user engagement and value creation, underscores the company’s commitment to innovation in the travel industry. As Tripadvisor continues to evolve and adapt to changing consumer preferences, the new in-app booking service is poised to revolutionize the way users plan and book their travel accommodations.