TripAdvisor’s hotel revenue has fallen below 2014 levels
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TripAdvisor’s hotel revenue earned $340 million in the third quarter of 2015 and $312 million in the third quarter of 2017. Non-hotel revenue, on the other hand, has increased from $75 million to $127 million over the same period, offsetting the losses.
TripAdvisor’s hotel revenue has now fallen below 2014 levels ($315 million in the third quarter of 2014).
An advertising push for TripAdvisor’s hotel product seems to have fallen flat, with the company spending $42 million in the third quarter after spending $16 million on TV commercials during the second quarter. The company’s attractions, restaurant, and vacation rentals business has helped pick up the slack as the hotels business has stagnated.
TripAdvisor’s stock declined more than 10% in after-market trading, but its user base continues to grow, despite its challenges in hotel booking. Average monthly unique visitors across all TripAdvisor sites grew 17% year-over-year to 455 million. User reviews and opinions grew 32% year-over-year.
TripAdvisor president and CEO Steven Kaufer criticized financial analysts who say innovation has slowed at the online review giant.