Trivago Focusing on Booking Tool to Fight Online Travel Agencies
Skift Take
In its effort to gain a stronger hold on the hotel market, Trivago is implementing a tool that could change how it makes money and reduce the role of online travel agencies in bookings.
In an effort to combat the hold that online travel agencies have on the hotel market, Trivago is focusing on building a capability for direct access between hotels and travelers.
“What has happened over the last 10 years is that a few OTAs have gained more and more market share, so the industry is quite consolidated,” said CEO Axel Hefer in an interview with Skift, adding that that means customers have less choice, and hotels have many of their bookings coming through the top OTAs.
“That's why we believe that is one of the biggest — or the biggest — opportunities in online travel, in a way to dis-intermediate the OTAs, because the OTAs got too big.”
Trivago is a metasearch site for hotels and accommodations, meaning that user search results are compiled from multiple search engines into a single list, allowing users to compare prices. As of the end of 2022, the company offered access to more than 5 million hotels and other types of lodging accommodations in more than 190 countries.
Trivago executives shared info about the direct booking tool in development and other details during its fourth-quarter earnings call on Wednesday.&
