Articles tagged “trivago”

As a sage songwriter once said, "You don't need a weatherman to know which way the wind blows." Trivago CFO Axel Hefer knows that, and he said current headwinds are obviously harder to manage than tailwinds. But if Trivago can work its way out of the mess it's in, it may emerge as a stronger company.

Expedia's HomeAway unit isn't as profitable as the parent company initially envisioned, and Booking.com rained on Trivago's parade. Still, Expedia itself — and financial analysts — are optimistic about Expedia's long-term prospects. Regardless of the promise, these are very challenging days in online travel.

What do a debate over landing pages, the acquisition of Momondo, a shift into hotel software services, and regulators forcing changes in online travel agency contracts have in common? Each of those seemingly unrelated things may have pushed Priceline to toggle back its spending on Trivago.

This move could be a modest win-win for Trivago and HomeAway, which both fall within the broader Expedia Inc. orbit. But Airbnb and Booking.com remain fierce competitors for rental search, with Google waiting in the wings.

It should be no surprise that the new Expedia CEO, who Barry Diller claims to have selected without conducting a wider candidate search, would have his own ideas about where to take the $22 billion company. Okerstrom is even talking about a path for Expedia becoming number one in online travel. That's definitely something we haven't heard publicly articulated in awhile.

Expedia’s fast-growing hotel search site Trivago may see its pace of growth stall as both Expedia and rival The Priceline Group have pulled back on spending per acquired customer. This is extraordinary given the fact that Trivago was one of Expedia's growth engines and there was seemingly no end in sight.

Trivago, its parent Expedia, and Booking.com all want to provide business services to hotels. It's easy to see the potential value to resource-strapped hotel managers. Still, many hoteliers remain suspicious of these giants.

While this deal is small, it signals that the Expedia-backed hotel-search company wants to better identify the desires of its customers and become more sophisticated at proposing tailor-made offers that are relevant.

The online travel environment is transitioning at a hectic pace when you consider mobile and artificial intelligence. Expedia's new CEO, Mark Okerstrom, will have to find a way to chart his company's evolution at an appropriate speed to keep up. It won't always be smooth sailing.

Booking.com is pulling back from its advertising spend on Expedia-controlled Trivago. But we must await third-quarter financial data and any company pronouncements on the topic to know all of the implications.