IPO-Bound Trivago Is Growing Fast Because of Its Massive Marketing Spend
Photo Credit: Poland's Trivago Guy 'shows you how to find the perfect hotel at the best price.' Trivago will likely spend well over $500 million on sales and marketing in 2016. Trivago
Skift Take
If Expedia is successful in turning its Trivago hotel-metasearch unit into a public company in 2016, it would be the second time Expedia has monetized an asset in such a way in five years. Expedia shareholders made a ton of money when Expedia spun out TripAdvisor in 2011.
A financial analyst's research note says Expedia's Trivago unit is "the fastest growing travel metasearch asset," and one of the reasons why is because it spends 68 to 87 percent of revenue on sales and marketing.
That's "not a typo," states the investor note from Raymond James, referring to the massive marketing spend.
Yeah, all of that television advertising around the world doesn't come cheap.
Expedia recently announced that
