TripAdvisor’s Q2 2016 Earnings Preview

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Tripadvisor

 

trip q216 preearnings

TripAdvisor’s witnessed a lackluster first quarter in 2016 and the trend is expected to continue in the second quarter. This is because of the expenditures undertaken by the company to improve the Instant Booking experience, other strategic investments, and changing its transactional model for vacation rentals. However, the company expects to pick up its performance towards the latter half of 2016.

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TripAdvisor’s Instant Booking is expected to give it a big competitive advantage in the future. The platform includes top global hotel chains and the world’s biggest OTA (in terms of revenues), Priceline. It also  offers around a 20% lower price than the existing metasearch engines.

A recent report also suggests that its non-hotel business, including attractions, restaurant reservations, and vacation rentals, might grow by 118% between 2015 to 2018 to amount to a $500 million business. TripAdvisor has been pretty aggressive with the building up of its attractions, vacation rentals, and restaurant booking websites over the last couple of years. We currently expect TripAdvisor’s Subscription and Other business’s revenue (which is comprised of attraction, restaurant, and vacation rental bookings) to grow for the next five years at a CAGR of ~8% and the segment’s EBITDA to grow at a CAGR of almost 10%.

Have more questions about TripAdvisor? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for TripAdvisor

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