Imagination on

“Vacation”

“Vacation”
Planning a “Vacation”
The Game Changer
 At Glance

• TripAdvisor, Inc. is an American travel website

company providing reviews of travel-related
content. It also includes interactive travel forums.
• Founded: February 2000
• Head Office: Needham Massachusetts, US
• Founder : Stephen Kaufer & Langley Steinert
• CEO: Stephen Kaufer (2000-Now)
• Presence in 24 countries (2016)
• IPO: 21 December 2011, Nasdaq- TRIP
• Shareholder Majority 2016: Liberty Tripadvisor
Holding, Inc. (13,7%)
• Forbes: one of fastest growing company 2000-
2015
 The Story, Problem as an opportunity

It all began with a trip to Mexico.

Like many travelers in 1999, Stephen Kaufer’s vacation began with a travel agent. Seeking recommendations
on where to stay in Mexico, he left the agent’s office with three beautiful brochures for three gorgeous
resorts at three distinct price points.
At the mercy of marketing materials that all painted a similar picture (“The brochures made each place look
spectacularly beautiful.”), Kaufer initially considered booking the inexpensive option.

Before putting down a deposit, he searched online for the cheap resort, hoping to uncover something more
authentic than company- or travel agent-owned pages. He found a personal homepage—equivalent to a blog
today—with a firsthand account of the resort, including photos. “It made me want to think twice about
staying there,” he said. So, he booked the moderately priced resort, and had a great time on his trip.

“The decision process—searching the web to find what real people had to say about the resort—changed a
very expensive purchase decision for me,” said Kaufer. “So, I thought, how can I turn this into a business?”

And, so, TripAdvisor was born.

 The Story, Speedy & Innovative Mindset

• In its earliest stages, TripAdvisor’s model was business-to-business, meant to serve as a

database of searchable travel information for consumer-facing sites such as Expedia and
AOL to license for use. Though the product worked, it didn’t catch on, forcing Kaufer to
rethink the company’s strategy and shift to a consumer-focused model.
• “We changed, and what we landed on turned out to be a bigger business than anything we
hoped for originally.”
• Today, TripAdvisor is continuously evolving. “We’re constantly looking at what we’re
offering and trying to think of what the customer wants as opposed to what we do well,”
said Kaufer. “That keeps us cutting edge and ahead of where our travelers want to be.”
•  “Our culture is we’re just going to move. We don’t want to be locked into a process that’s
going to slow us down,” he said. That speed enables the team to release small patches of
software on the site every day, and release new features every week. “That sets a mindset.
Everyone knows it’s on that cadence all the time.”
The Story, One stop Solution @Technology driven
 The Story, Revenue Stream

1. Click based Advertising (68%), Travel industry is one of the industries, which is becoming
free of middle man because of internet. A user can compare the hotel prices and can choose
the convenient to his budget and comfort. As TripAdvisor has a great user base, many of
hotel chains and hotel websites divert the TripAdvisor traffic to their websites. They pay to
TripAdvisor on the basis of number of clicks that has been made in a time period.

2. Display Advertising (15%), The firms that related to travel & tour booking (in terms of
transportation booking, accommodation booking) and restaurants display their banner or
any other shape ads of specific size that cover some space of webpage. These ads include
information in text, logos, pictures, audio and video formats of respective firms.

3.Subscription & Affiliate Model (17%), Some of the booking sites, hotels, restaurants and
agencies paying TripAdvisor on regular basis for showing their information to get exposer to
more customers and to find out more information of their services and direct contact
details.
The Story, Competitor

Primary competitors include large online portals, social networking sites and search
engines, such as Google (including Google + Local), Facebook (including Graph
Search), Yahoo! (including Yahoo! Travel) and Baidu. We also face competition from
OTAs (such as Expedia and Priceline and their respective subsidiaries), as well as
wholesalers, tour operators and traditional offline travel agencies. We also compete
with a wide range of other companies, including Airbnb, Inc., Alibaba, Ctrip.com
International, Ltd., HolidayCheck AG, HomeAway, Inc. (a subsidiary of Expedia), Yelp,
Inc. and OpenTable, Inc. (a subsidiary of Priceline).
Achievement, Customer Growth (120 Mio in 2016)
Achievement, Market Capitalization & Revenue (1.492 Mio in 2016)
 Disruptive the current game?

Tripadvisor has (2016)

• 995.000 Hotel
• 3.800.000 Restaurant
• 625.000 Attractions
• 125.000 Destination
Thank You