President TripAdvisor: “We Compete With Google”

Posted On 27 Mar 2015
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Tag: Tripadvisor compete google, Tripadvisor earnings history, Tripadvisor president interview

The American company TripAdvisor Inc. 14 years of the little-known site with tips for travelers and feedback into a business that combines multiple services with annual revenues of more than $ 944 million. The site came up with Harvard graduate, the programmer Stephen Kaufer - today he is the president and CEO of TripAdvisor Inc. In his interview with media, he told company’s plans and Uber partnership with Facebook and the scheme of earnings TripAdvisor.

People do not go into Google, to plan their trip

When you start in 2000, you open a new niche. TripAdvisor now very popular, but what have you done lately to not take positions in a very dynamic online business?

We think about it all the time. In the last couple of years we have started to buy advertising on TV, to expand our audience. One of the main areas in which we are moving, - option booking on our website. To do this, we conclude new partnerships in different countries. We understand that people use our service not only when planning a journey, but when already on the road. Therefore, we develop a mobile app - today we have more than 150 million downloads worldwide.

Who are your global competitors? Search Engines like Google, too?

We compete with Google, because they collect all the reviews. But people do not go into Google, to plan their journey: they use it as a search engine. Same with “by Yandex” - this is a good search engine, but it is not a service for tourists.

Another type of competition - services for booking, such as and other sites that also collect feedback. Generally, - our client in CPC [system of advertising in metasearch Cost per Click]. Price comparisons of hotels on TripAdvisor site allow users to track real-time prices for hotel accommodation and the possibility to book rooms through our partners. To get to the Meta TripAdvisor, our partner (hotel chain or online travel agency) must connect to TripAdvisor through the API. Then the partner provides information about the availability of rooms in the interests of the traveler days and their prices, and then it can transmit your request to our auction system. Partner pays per click, if a traveler chooses a link to his site.

How is your business in China? Why do you need a separate site daodao. com in this country?

We are coping well in order to help people go to China from other countries. We launched the site daodao. com primarily for the Chinese from small towns who want to go for the first time in a big city or abroad. In China, many migrate, and it is a very strong economy. But in the Chinese market competition is high, so for us it is a big challenge.

Do TripAdvisor not the best position in China. When I talk about the global success, I constantly repeat that we are number one or two in most countries, except China. In this market, we are still just trying to evolve, but our competitors there is still more traffic. Ranked Among them Strip. com - the largest travel agency in China, Chinair - great site to search for airline tickets, hotel reservations and train tickets, in addition, e-Long. China - the only part of the world where our trump cards do not work.

What do you earn?

Our trump card - it’s content. We have more reviews, photos and tips to our community of users are broader than that of other travel sites. Content is constantly generating people around the world - it’s magic. I just started to work in the morning, but while I was sleeping on the site, thousands of new reviews and pictures. Filling of the site content is actively going on at night, although no one in the office of TripAdvisor not working at this time. Of course, our programmers and designers are constantly working on the development of the site, but the foundation of our business model, like eBay, is that the service is driven by the fact that it is increasingly used.

Basically we earn from advertising, as well as get a commission from the booking. Advertising Cost per Click model gives us about 70% of revenue. In this model, the rate per click advertisers appoints themselves - on the auction model. A little more than 10% gives media

TripAdvisor Figures

  • $ 205 million net profit TripAdvisor Inc. in 2013
  • $ 944 million The company’s revenue in 2013
  • $ 294 million operating profit in 2013
  • $ 10.1 billion capitalization of TripAdvisor Inc. on December 2, 2014
  • 315 million people the number of unique visitors to the site TripAdvisor
  • More than 190 million site visitors reviews about 4.4 million restaurants, hotels and other tourist spots.
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