TripAdvisor Transformation: Most Selling Experiences
Software sales For the past couple of years, the company has been generating the most revenue from selling the experience. However, they face competitors like Airbnb, Booking.com, Ctrip, Expedia, GetYourGuide, Klook, KKDay and others who are trying to get their share of the pie related to excursion offers, activities and attractions. Despite this, TripAdvisor claims that they are still the leaders in offers and reservations around the world. Last year, TripAdvisor acquired Bokun, a software company that offers tour operators the option of an online booking service. “This is an aspect that is very difficult for others to replicate, ”He said, probably referring to the marketing challenge faced by well-funded startups like GetYourGuide and Klook in gaining customers. “The competition is fierce”, Said CEO Steve Kaufer. But it claims TripAdvisor has the most online users buying experiences. He noted that the company has an average of between 400 and 500 million visitors a month. The company plans to focus on demand because they want to attract tour operators and experience providers with the most profitable offers. Investments in marketing Source: Shift; TripAdvisor TripAdvisor claims that their strategy is to be one of the world’s largest travel agencies offering experiences like parasailing and hiking tours. But this week, they revealed a few more tactics with which they want to achieve this, reports Skift. Supply growth Last year, TripAdvisor spent $ 115 million on television advertising, and this year the plan is more or less the same. But the message they send will change over time. Last year’s campaign presented TripAdvisor as a hotel price comparison site. This year, TripAdvisor will be touted as a place to book experiences. Kaufer said that TripAdvisor and its sister brand Viator “leading in supply in most parts of the world.“He said the company now offers 202 experiences across the platform, more than the competition and twice as much as TripAdvisor offered a year ago. “We offer Bokun practically free”, Said CFO Ernst Teunissen. “We offer this software to new suppliers as an additional service. Although it does not bring us much income at the moment, it has the potential to do so in the future.” Tickets at a discount TripAdvisor said in 2018 that their earnings from the experience reached $ 48 million. This year, TripAdvisor plans to encourage cheap experiences like museum tickets and group walking tours. In the first quarter of 2019, the company spent $ 24 million of $ 80 million in revenue on product development and marketing, but also on discounts and promotions.