TripAdvisor
turned in modest 5% growth in total revenue for 2017 but a notable 24% increase
in revenue in its non-hotel category.
In fact, the
non-hotel segment, which includes attractions, restaurants and vacation
rentals, now accounts for 23% of the company’s revenue.
In 2014, non-hotel
activity accounted for just 9% of total revenue.
Meanwhile
hotel segment revenue was nearly flat. It dropped 3% in the fourth quarter
compared to the same period in 2016 and was up just 1% for the full year.
Total
adjusted EBITDA was down 25% for TripAdvisor’s hotel segment but up a whopping
261% for non-hotel activity.
The company’s
core content of user reviews and opinions grew 29% year-over-year, reaching 600
million opinions registered covering 1.2 million hotels, inns, B&Bs and specialty
lodging, 750,000 vacation rentals, 4.6 million restaurants and 915,000
attractions including tours and activities.
That growth
represents a downtrend compared to 2016 when TripAdvisor reported a 45% increase
in user content.
And from
2016 to 2017 one category saw a marked drop in reviews – vacation rentals lost
about 10% of its content - while attractions jumped 20%.
Average
monthly unique visitors on TripAdvisor-branded websites and applications grew
17% in the fourth quarter of 2017.
In the earnings
statement, TripAdvisor says the two main drivers of the company’s fourth-quarter
results were a stabilization in its click-based auction and continued
optimization of its paid marketing mix with a significant reduction in expenses
for online traffic acquisition.
It also
noted recent organizational changes – the restructuring of the company’s
organization by business units rather than function and departure of two
executives announced in early January – that will help it “execute our
long-term growth strategy.”
“During Q4
and 2017 we continued to make progress along our key initiatives,” says CEO Steve
Kaufer.
“Continued
product enhancements, as well as strong content, community and supply growth,
nicely position the TripAdvisor platform in front of long-term growth
opportunities.”