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Online Travel

Trivago Spins Alternative Accommodations as Its Ace in the Hole

Dennis Schaal photo
Dennis Schaal

Photo Credit: Trivago CFO Axel Hefer is looking for the company to counter a revenue shortfall from Booking Holdings by getting more business from hotels. Trivago

Skift Take

In some ways, Trivago and TripAdvisor find themselves in similar situations, although TripAdvisor has more upside because of its global brand awareness and the breadth of its offerings. But both need time to play the long game. In Trivago's case, it is now seeing alternative accommodations as a potential life line.

Hotel-search site Trivago said earlier this year it expects to post a loss of $30 million to $60 million in 2018, and its formerly largest client, Booking Holdings, dramatically reduced its advertising spend in the platform during the first quarter. Yet, with its stock trading at less than $5 per share, Trivago CFO Axel Hefer is saying that the value proposition of its search engine is increasing. Why? Alternative accommodations. Trivago recently began adding vacation rentals from sister brand HomeAway — both of which are part of the Expedia Group portfolio — and Hefer said when consumers visit the site they are typically aware of the trip type they want to take, whether it is a romantic sojourn or a beach vacation, but many don't neces

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