Travel metasearch challenged

Increased competition from Google Hotels and Flights, which draw in users at the onset of their travel inquiries, significantly impacts Tripadvisor and Trivago

Advertising within the travel metasearch realm previously held a prominent position for online travel agencies and hotels. However, the landscape shifted with the emergence of Google Hotels, YouTube, and TikTok, alongside loyalty programs from hotels and online travel agencies, causing a decline in the perceived value proposition.

Key takeaways

• Key points highlighted in a recent research note from Wells Fargo Securities express caution regarding Tripadvisor and Trivago, citing ongoing challenges within the travel metasearch sector despite indications of post-pandemic demand normalization;
• Hotels have successfully attracted more direct traffic by leveraging their loyalty programs, often offering preferential rates to members compared to those found on metasearch platforms like Google, Tripadvisor, Kayak, and Trivago;
• Furthermore, online travel agencies such as Booking.com and Expedia have introduced their own loyalty programs, occasionally implementing substantial discounts to attract direct traffic, thereby impacting metasearch platforms, even those owned by online travel agencies themselves.

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