Tripadvisor recently announced a new service that allows its members to book hotel stays directly within its app through a partnership with Hopper Technology Solutions (HTS). This move comes on the heels of a 1% increase in second-quarter revenue and highlights the company’s efforts to deepen user engagement and drive profitability.
While Tripadvisor reported a modest revenue increase in the second quarter, it is noteworthy that Viator, the experiences platform, saw the biggest quarterly increase at 13%. However, TheFork also saw a substantial 11% increase, indicating that the company is diversifying its revenue streams. The Tripadvisor brand, while down 10% for the period, still accounted for over half of the company’s total revenues. CEO Matt Goldberg emphasized the importance of segment strategies in driving profitability across the board.
Goldberg stressed the need for deeper engagement with users to increase monetization opportunities. By introducing in-app hotel bookings, Tripadvisor aims to provide a more integrated trip planning platform for its most engaged members. President Kristen Dalton highlighted the significance of consolidating research and booking experiences into a seamless app interface to enhance the user journey.
Partnership with HTS
To facilitate in-app hotel bookings, Tripadvisor partnered with HTS, a global travel technology provider, to power both bookings and hotel inventory. HTS will handle merchant of record responsibilities and offer white-label customer support to Tripadvisor users. This partnership enables Tripadvisor to focus on enhancing user experience while scaling its booking capabilities rapidly.
Membership Value Proposition
The in-app booking experience is exclusive to logged-in Tripadvisor members, a strategic move to deepen relationships with its most engaged users. By exploring rewards and incentives for members, Tripadvisor aims to enhance its free membership value proposition. This initiative aligns with the company’s decision to discontinue the Tripadvisor Plus subscription program earlier this year in favor of a free membership model.
Industry Analysis
Industry experts, such as Lorraine Sileo from Phocuswright Research, view Tripadvisor’s foray into direct hotel booking as a logical step to capitalize on user traffic. This move aligns with similar partnerships HTS has forged with financial institutions and retailers to offer travel booking options to their customers. By leveraging its extensive hotel supply and innovative technology, HTS aims to provide Tripadvisor members with a convenient and flexible travel booking experience.
Tripadvisor’s introduction of in-app hotel bookings represents a strategic shift towards enhancing user engagement, driving profitability, and solidifying its position in the competitive travel industry. By partnering with HTS and focusing on user experience, Tripadvisor is well-positioned to capitalize on the growing demand for integrated trip planning services.