TripAdvisor has reported a slight decrease in revenue for the first quarter of 2019, which was 1% down year-on-year at $376 million
The company says that excluding currency fluctuations, revenue grew by about 2%, with its core non-hotel divisions contributing to the growth.
Net income increased 420% to $26 million for the quarter while adjusted EBITDA was up 11% to $89 million.
Revenue for the Hotels, Media & Platform segment was flat at $254 million, with EBITDA up 36% to $105 million.
Experiences & Dining segment revenue was up 29% to $80 million and the company says that EBITDA for the segment at a $24 million loss reflects its investments for long-term growth.
TripAdvisor is investing in product development around experiences and dining as well as “sales talent” in the U.S., Europe and Asia Pacific.
One examples is its “Traveler Ranked” sort order for experiences, which is now based on metrics such as browsing behavior, traveler interest, photos and latest reviews.
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Much of the discussion during the analyst call centred on the long-term potential of the Experiences and Dining category.
Chief executive Steve Kaufer says the company is "super excited about the opportunity in restaurants and experiences."
"It's part of the trip and so untapped by major players including us."
He adds that the company's strength in supply from both the TripAdvisor and Viator sides and demand from site visitors puts it in a position of strength compared to online travel giants.
"Because it's one of the last untapped opportunities in the travel ecosystem, of course it attracts attention. Our challenge is to leverage our leading position in supply and demand and make the connection which is why you see us reinvesting in that category and putting our dollars where our talk is."
Chief financial officer Ernst Teunissen also talks of the long-term "attractive margins" for the business unit:
"Commission and take rates are both very healthy and we believe it will scale going forwards. It's a fragmented market and we believe large players will have significant pricing power and the underlying cost structure to support the business is not that different to general OTAs."
He adds that investment in building up Bokun and getting new suppliers on board is one way the company looks to achieve potential revenue growth in 2020.
Other revenue for the company, which includes rentals, flights/cruise, SmarterTravel and TripAdvisor China, was down a third to $42 million.
The company puts this down to the “elimination of some marginal and unprofitable revenue” within non-TripAdvisor branded offerings.
During the first quarter of 2019, the company also invested $29 million in brand advertising, mostly in television, and highlighted TripAdvisor Experiences in its campaigns. Teunissen hinted at the possibility of widening it further to highlight other elements later this year.
Brand advertising for 2019 is expected to be at a similar level to 2018 when spend totalled £115 million.
Kaufer says: “In Q1, we grew profit and while investing in and growing our strategically important Experiences and Restaurants businesses."
He adds that the company is focusing on product improvement and supply growth for 2019.