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Tripadvisor’s experiences and restaurants businesses outpace vacation rentals

Date:2018-11-09 09:05Source: ReadingNumber: Times

TripAdvisor is prioritizing growth in experiences and restaurants over expanding its alternative accommodations business

TripAdvisor is prioritizing growth in experiences and restaurants over expanding its alternative accommodations business.

If you are an online travel company running a lodging business, you probably have to offer home and apartment rentals to supplement your hotel offerings, but TripAdvisor’s rentals business is dragging down the results of its otherwise fast-growing non-hotel segment.

In other words, TripAdvisors experiences business where it sells tours and activities, as well as its restaurants reservations business, are showing strength, but its rentals business notched declining revenue in the third quarter. Experiences, restaurants and rentals comprise the company’s non-hotel segment.

In the third quarter, TripAdvisor’s non-hotel segment saw its revenue jump 20 percent to 3 million, but its rentals business slowed revenue growth, the company said. The non-hotel segment’s adjusted earnings rose a modest 7 percent to million, the company reported Wednesday as it released its third quarter earnings.

TripAdvisor said its rentals business, much of which it inherited as a foundation when it acquired FlipKey in 2008, experienced seasonally high revenue declines, offsetting ongoing strength in experiences and restaurants.

 

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