Trivago has reported a net income loss of €165 million for 2023.
Revenue for the hotel metasearch service came in at €485 million, down 9% versus 2022 and €92 million for the fourth quarter, down 13% year over year.
The company, which announced announced Johannes Thomas as its new CEO and managing director in May, reported adjusted EBITDA down 68% for the quarter to €7 million while for the year EBITDA was down 50% to €54 million.
Referral revenue decreased 12% in the quarter to €89 million and was down 9% to €477 million for the full year.
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“In the fourth quarter of 2023, we continued to observe lower levels of monetization compared to the same prior year period when we had benefited from a strong auction in our marketplace, as well as foreign exchange headwinds, which negatively impacted our financial performance," the company said in a statement. "We continued to observe average booking values normalize during the fourth quarter towards prior year levels, which continue to exceed 2019 levels. Higher levels of competition in performance marketing channels continued to negatively impact our results, which resulted in traffic volume declines, particularly in our Developed Europe and Americas segments. These declines were partly offset by increased traffic volumes in our Rest of World segment.”
The statement added that the company expect its new launched advertising campaigns to reap high levels of advertising spend.
"We continue to believe that, as we increase our brand marketing efforts throughout 2024 and in the coming years as part of our multi-year strategy, this will have a long-term positive impact on the volume of direct traffic to our platform."
Trivago's selling and marketing spend in the fourth quarter increased 4% to €64 million year over year with 90% attributed to advertising spend.