Will TripAdvisor Disappear? - By Madigan Pratt
I can hear the cheers already from every hotelier who has ever received a poor review.
Last week when Expedia announced that it was spinning off TripAdvisor there was a lot of speculation as to what it meant for hoteliers. At the same time many investors were wondering how owning a piece of the travel industry’s 800 pound gorilla would improve the performance of their portfolio.
According to the Wall Street Journal investing in TripAdvisor isn’t the “no brainer” travel insiders might think. The WSJ reports that Google with its new “Places” search product has been aiming squarely at TripAdvisor” . Like TripAdvisor, “Places” provides hotel reviews as well as access to sites where people can book a hotel room. (see: “Is Your Hotel Ready For Google Places“)
According to Comscore which measures web traffic to sites, “since November, TripAdvior’s page views have fallen from the year-earlier number.” And Google recently received approval from anti-trust authorities to purchase travel search firm ITA Software.
This led the WSJ to speculate, “[with Google having its own travel search] there may be little need to click through to other travel search sites like TripAdvisor.
What does this all mean?
For the record – Expedia paid $219 million for TripAdvisor in 2004. One Wall Street analyst estimated TripAdvisor’s current valuation at $2.4 billion.
About Madigan Pratt
Madigan Pratt has more than 25 years of strategic marketing communications experience, including advising Fortune 500 companies, Tourism Boards, destinations, and luxury resorts. Madigan leads a team of marketing, public relations and social media professionals at Madigan Pratt & Associates. Originally founded in New York and now headquartered in Williamsburg, Virginia, Madigan Pratt & Associates is an award-winning marketing and advertising agency specializing in customer relationship marketing for hospitality and luxury service clients.
A well published author and popular conference speaker, Madigan provides expert counsel to the hospitality industry and publishes tips at Hospitality Marketing Blog. He has served on numerous travel industry association boards including the Caribbean Tourism Organization, The Association of Travel Marketing Executives and HSMAI Resort Marketing Advisory Board.
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