Articles tagged “trivago”

Much of the metasearch business is beyond the control of the metasearch companies themselves because their largest advertisers can switch things up five minutes ago. Just ask Trivago, and to a lesser extent, TripAdvisor. The best they can hope to do is to diversify their advertiser base and to keep plugging away.

This must-read introduction is the first excerpt from Skift's recent digital book For the Long Haul, in celebration of our sixth anniversary.

Trivago and Booking.com have dramatically reduced their U.S. TV advertising. Trivago is doing so to try to stem losses, and Booking.com, which last year indicated it would lean into TV advertising, may be trying to tighten control of some marketing costs.

Has the worm turned? Have Expedia and Booking.com found a way to trim the growth of their bloated advertising spend? That would not be great news for some advertising platforms, and would be a significant change in the way the largest players conduct their marketing operations.

A lot of Trivago's problems, including an advertising diss from Booking Holdings, are beyond the company's control so it is doing what it can, namely reducing advertising spend and headcount in an attempt to get into the black. Speaking of Booking Holdings, Trivago may need a dot-com-like Priceline comeback to right the ship.

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.

Everyone blames Booking.com for Trivago's woes. But we're reserving judgment on the hotel search company's worse-than-expected second-quarter forecasts until we can hear from its other largest advertiser, Expedia Group, which holds its own first-quarter earnings call soon.

Evolve or be crushed. That's CEO Glenn Fogel's philosophy about business in general and Booking Holdings in particular. But the move toward becoming more of a full-service online travel agency comes with the risk of losing focus on accommodations. No one ever said all this online travel agency stuff is easy.

Trivago views Google Hotels as a separate channel from Google AdWords, and it is testing participation now that sites such as its own are no longer banned. Then comes the question of how profitable using Google Hotels would be, and whether Trivago wants to spend a lot of money in a competitive product.

It seems that Priceline Group's recent pullback from advertising on Expedia-backed Trivago may be a new normal. In a brutal move, Booking.com pulled almost entirely out of Trivago's search listings in Germany and Italy in December.