TripAdvisor expands its subscription business
Reviews of an attraction, hotel or restaurant can be make or break in forming public perception. And, that is why TripAdvisor have proved so successful, by providing in-depth and wide-ranging reviews of the world’s events – and now they are expanding one of their key features.
TripAdvisor announced last week it was expanding the subscription and additional services area of the business to include restaurants.
As you will know, their app and website already offer reviews and listings for restaurants all over the world. But, this change from TripAdvisor will look to work extra advertising revenue out of these fine dining and quick eatery outlets. It will take its services beyond simple listings and a pay-per-click business model to offer extra services with a monthly or annual fee attached.
Writing in Skift, Dennis Schaal has reported: ‘The various features in the new subscription services, as rolled out so far, aren’t game-changing but appear as incremental changes — and they seem especially suited to mobile.’
‘These include pinned reviews and cover photos for hotel listings that emphasize what management wants to show consumers as a first impression in the restaurant or hotels’ appearance on TripAdvisor. These might provide improved marketing capabilities for restaurants and hotels but it is hard to see how these services improve anything for TripAdvisor’s consumers.’
TripAdvisor share price over the last month
As of 20 January 2017: 52.16
SOURCE: Yahoo Finance
Subscriptions are already a big source of income for TripAdvisor, as, in their most recent financial results, the company lumped their branded display advertising together with subscriptions and together they were worth $200m to the business for the year.
Currently, TripAdvisor’s La Fourchette (The Fork) has around 38,000 bookable restaurants in a dozen, mainly European, countries. The company also has Opentable for restaurant reservations, but their coverage of dinner reservations will increase greatly with this new subscriptions expansion.
Dominion holds TripAdvisor in its Global Trends Luxury Fund.
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