The Tripadvisor Earnings Call That Became a Sales Pitch for Viator
Photo Credit: A view of the lobby in the global headquarters of TripAdvisor in Needham, Massachusetts. Tripadvisor may spin out Viator through an IPO. TripAdvisor
Skift Take
Whether it is hotel-like commission levels on the online travel agencies, new product features, or market share gains, Tripadvisor was unabashedly selling the virtues of a Viator IPO — or deal. It's not a winner-take-all market, but rivals have narrowed any competitive gap.
Tripadvisor's fourth quarter earnings call with financial analysts amounted to a sales pitch for its potential Viator initial public offering — or other options under discussion with third parties that Tripadvisor said are taking place in "parallel."
No company files a registration statement with the U.S. Securities and Exchange Commission to spin out a brand, as Tripadvisor has done for Viator, as a bargaining chip, but the prospect that Tripadvisor has a viable alternative in taking Viator public and strengthening it as a competitor could give it leverage in talks with potential acquirers or partners.
During the discussion about Tripadvisor's fourth quarter and full-year 2021 results, Tripadvisor Chief Financial Officer Ernst Teunissen said Viator has traditionally been strong in selling experiences in English-speaking countries, particularity in cities as part of international travel.
However, in 2021, although Tripadvisor saw a European rebound in the July to December period, the year was notable because Viator gained market share in the U.S. domestically, an arena that it hadn't previously taken advantage of, he said. Tripadvisor had upped its marketing of Viator in the U.S., and saw revenue growth, he added.
Teunissen argued that Tripadvisor, which would still control Viator in the event of a sub-IPO, is "uniquely positioned" to sell tours and activities as standalone products, while Tripadvisor can market them as part of the overall trip.
While there will be other onl
