https://skift.com/2018/05/08/tripadvisor-q1-shows-some-positives-although-core-hotel-business-is-still-tough-going/ - 1 views

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  #1 kdomi006 on 27 Jun 18

   

  During the first quarter, TripAdvisor's hotel search business was under a bit of pressure. There was strong hotel growth throughout the non-hotel areas such as restaurants, tours, and activities thanks to effective marketing. A few investors took a look at some of the positive aspects of TripAdvisors Q1. TripAdvisor's stock rose 19% just a few hours in the same day investors traded on that Tuesday.
  
  Throughout the hotel segment, revenue dropped 5% to $299 million and profits were flat at $88 million in core segment in Q1. There were 800,000 rental listings at the end of March. During the first quarter, TripAdvisor invested $24 million in brand advertising, and used around $100-$130 million in the same area in order to validate their "best-price" message. Investors mentioned that they are happy with the marketing decisions being made throughout the first quarter. TripAdvisors net income fell 61% ($5 million). This was due to a tax adjustment charge, which resulted in total revenue of $378 million (2%).
  
  Currently, TripAdvisor is focusing on non-hotel segments to raise revenue, specifically restaurants and experiences. This is a smart idea for them to do. Right now everyone is focusing on restaurants and experiences, not so much on hotels itself. Millennials will stay in a lower rated hotel versus a luxury one because the mentality is "it's just a place to sleep". The money used on the trip goes towards more modern and popular restaurants as well as experiences.

   

  <div class="cArrow"> </div><div class="cContentInner">During the first quarter, TripAdvisor's hotel search business was under a bit of pressure. There was strong hotel growth throughout the non-hotel areas such as restaurants, tours, and activities thanks to effective marketing. A few investors took a look at some of the positive aspects of TripAdvisors Q1. TripAdvisor's stock rose 19% just a few hours in the same day investors traded on that Tuesday. <br /> <br /> Throughout the hotel segment, revenue dropped 5% to $299 million and profits were flat at $88 million in core segment in Q1. There were 800,000 rental listings at the end of March. During the first quarter, TripAdvisor invested $24 million in brand advertising, and used around $100-$130 million in the same area in order to validate their "best-price" message. Investors mentioned that they are happy with the marketing decisions being made throughout the first quarter. TripAdvisors net income fell 61% ($5 million). This was due to a tax adjustment charge, which resulted in total revenue of $378 million (2%). <br /> <br /> Currently, TripAdvisor is focusing on non-hotel segments to raise revenue, specifically restaurants and experiences. This is a smart idea for them to do. Right now everyone is focusing on restaurants and experiences, not so much on hotels itself. Millennials will stay in a lower rated hotel versus a luxury one because the mentality is "it's just a place to sleep". The money used on the trip goes towards more modern and popular restaurants as well as experiences.</div>

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