Trivago is crediting the end of lockdown measures in a number of its markets for a jump in revenues during the second financial quarter of 2021.
Metrics remain "significantly below 2019" but an initial surge in referrals for the accommodation metasearch brand during the three-month period saw some countries come in higher than in the corresponding timeframe two years ago.
Total revenue at the Germany-based company in Q2 was €96 million, up almost 500% from €16 million in the same quarter last year, when much of the industry had ground to a halt.
Money the business makes from each qualified referral has increased by 115% from €0.59 to €1.27 year-over-year.
Adjusted EBITDA saw the beginning of a turnaround in performance, with Q2 2020's loss of €19 million narrowed to a loss of €4 million this year.
In a letter to shareholers, Trivago says despite an early flurry of attention on private accommodation options, hotels have recently gained a "relatively higher share of the total accmmodation market."
"Even though we believe that hotels are better suited to increase capacity quickly and pick up incremental demand, we expect that alternative accommodations will have gained market share post pandemic – although are likely to stabilize at a lower share than last years’ data might suggest."
The company's core revenue referrals coninue to come from online travel agencies, in particular Booking Holdings and Expedia Group.
In the first six months of 2021, Expedia Group brands accounted for 21% of referral money, compared to 32% in the corresponding period in 2020. Booking Holdings came in at 59%, a shift from 40% in 2020.
Trivago says it expects the emergence and rapid spread of the Delta variant of COVID-19 will create a challenging environment for the business over the course of the next few months.
The company says: "The pandemic is not over yet – and the travel business will likely remain challenging and volatile for quite a while. But we are excited to see travelers return at scale allowing us to continue to execute on our strategy, develop new features and products and adapt our marketing activities."
* Check out this interview with Trivago CEO Axel Hefer, recorded in May 2020 for PhocusWire's New Reality With... series.
New Reality With... Axel Hefer of Trivago