Here’s Why TripAdvisor Believes It Can Effect A Turnaround
TripAdvisor is currently going through troubled times. The continued investments across its platforms, as well as strategic acquisitions, are keeping the company’s performance dampened currently. In the second quarter, TripAdvisor’s top line declined by 3% and its adjusted EBITDA decline was around 23%. Even while there are still questions about whether TripAdvisor will be able to effect a turnaround, the recent tourist app by Google, called Google Trips, is expected to provide tough competition to TripAdvisor’s tours and attractions segment. Amidst all this, TripAdvisor’s CEO, Stephen Kaufer, recently announced that the company is confident with the progress it is making with instant booking and there is no looking back for TripAdvisor.
- According to Kaufer, the Instant Booking platform allows hotels and OTAs to pay a commission to TripAdvisor and handle the customer service for guests. Earlier, TripAdvisor would send the users to the respective hotels or OTA websites to complete their bookings. According to Kaufer, this transition from a metasearch to a hotel booking platform is making TripAdvisor forego short term revenues.
- Kaufer also mentioned that the downgrade of its stock price is merely a short term phenomenon. Kaufer thinks that Instant Booking is indeed going to pay off well in the long term and had also asked shareholders to keep that faith in the product.
- The CEO has also stated clearly that he has no intentions of stepping down from his position at present.
We have mentioned earlier how TripAdvisor’s Instant Booking can indeed act as a game changer for the company. However, in case it fails to revive growth, there’s also a possibility of the company becoming an acquisition target for one of the larger OTAs.
- Why Has Tripadvisor Stock Slumped 35% This Year?
- Gaining 20% This Year, Will Tripadvisor Stock Rally Further After Q1 Results?
- Up 26% Already This Year, What Is Next For Tripadvisor Stock?
- Up 21% Since 2023, How Will Tripadvisor Stock Trend Post Q4 Results?
- Down 18% This Year, How Will Tripadvisor Stock Trend Following Q3 Results?
- What’s Next For Tripadvisor Stock?
Have more questions about TripAdvisor? See the links below.
- What Is TripAdvisor’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- Advertising Vs Subscription: What’s TripAdvisor’s Revenue and EBITDA Breakdown?
- How Has TripAdvisor’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- TripAdvisor Year 2015 In Review
- Where Can TripAdvisor’s Growth Come From In The Next 5 Years?
- What Drove TripAdvisor’s Revenue And EBITDA Growth Over The Last Five Years?
- TripAdvisor Q1 2016 Earnings Preview
- How Is TripAdvisor Gearing Up For Competition In The Vacation Rental Space?
- How Can Instant Booking Stir Up The OTA Space And Be A Game Changer For TripAdvisor?
- TripAdvisor’s Expected Revenue And EBITDA Growth For 2016: Trefis Estimate
- Why Might TripAdvisor Be An Attractive Acquisition Target For Priceline?
- What Has Been The Immediate Impact Of The Brexit Decision On The Online Travel Companies?
- How Is TripAdvisor’s Non-Hotel Business Expected To Grow?
- What Might Be The Long-Term Impacts Of Brexit On The Online Travel Agencies?
- What Is The Significance Of TripAdvisor’s Upgraded Flight Search Platform?
- TripAdvisor’s Q2 2016 Earnings Preview
- TripAdvisor’s Q2 2016 Results Remain Subdued But The Company Is Eyeing Long Term Growth
- Reasons Behind Our 12% Downward Revision Of TripAdvisor’s Stock Price
- How Is TripAdvisor’s Top Line Trending?
Notes:
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)