Advertising through metasearches like TripAdvisor is becoming less popular

March 2, 2019
Share this Post: 

Online travel agencies marketing through metasearch engines like TripAdvisor are losing interesting in the latter, changing their marketing tactics to other resources, specifically brand advertising.

For example, the collective marketing spending of Booking Holdings and Expedia Group through TripAdvisor reached a four-year low in 2018, and their contribution to TripAdvisor as a percentage of its total revenue hit rock bottom since it became a public company in late 2011.

In fact, in 2018, as reported in TripAdvisor’s year-end financial filing, Booking Holdings and Expedia Group’s contribution to TripAdvisor’s total revenue fell to 37 percent, or $597.5 million, compared with 43 percent, or $669.1 million, in 2017.

The trajectory of Booking Holdings and Expedia Group’s marketing spend in TripAdvisor are detailed in the chart below. That collective marketing spend peaked in 2015 when TripAdvisor and Booking Holdings announced an instant booking partnership, and has trended downward ever since for a variety of reasons. Chief among them are that the major online travel agencies have seen a reduction of their marketing efficiency in performance, or search engine, advertising and have put new emphasis into brand marketing, including TV, as a way to attract direct bookings.

Expedia-Booking Holdings Spending in TripAdvisor 2012-2018

Year % of TripAdvisor Revenue Expedia/Booking Spending % Change
2018 37% $597.5 million – (10.7%)
2017 43% $669.1 million 1.25%
2016 46% $680.8 million – (0.80%)
2015 46% $686.32 million 19.70%
2014 46% $573.16 million 29.10%
2013 47% $444 million 21.20%
2012 48% $366.2 million N/A

Source: TripAdvisor’s Securities and Exchange Commission filings

While TripAdvisor has had to adjust to the hardball dynamic of reduced marketing spend from the two largest U.S.-headquartered online travel agencies, the picture is not all doom and gloom.

For years, TripAdvisor, and other metasearch sites such as Trivago and Kayak, have been criticized for an over-dependency on marketing spend from just two major online travel agencies, and their subsidiaries.

Read more here

Join us in Bangkok the 19th to the 21st of March for the Property Portal Watch Conference.

Bkk 2019 Ppw Banner 02062019

Read more

March 2, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Shutterstock 1454624438
U.S. Portal Operator OJO Labs Acquires The LEAD Syndicate

The U.S. PropTech operator OJO Labs has announced that it has acquired The LEAD Syndicate, a provider of teach solutions...

Read More
Onthemarket Employees
OnTheMarket PR Push Continues with Agent Signups and Roadshow

The UK's number three portal OnTheMarket (OTM) is definitely ramping up its PR in the early months of 2024 with...

Read More
Product Roundup 13March24
Product Roundup: FangDD, Yandex, Redfin, Realtor.com, Keyper, OneDome and MagicBricks

Another week, another big product roundup for portals and proptechs worldwide. Here's what we've spotted...   FangDD shares soar 80%...

Read More
Proptechfundingroundup060324
PropTech Funding Roundup: Cove, FOIP, EasyKnock, GoFlint, Rukita

While the average value of this week's proptech fundraising roundup hovers around the $3M mark, one of today's featured startups...

Read More