Author Topic: TRIP - Tripadvisor Inc.  (Read 96191 times)

WneverLOSE

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Re: TRIP - Tripadvisor Inc.
« Reply #10 on: February 06, 2016, 01:24:49 PM »
A few things I don't understand,
1) Why did he bought a position in both TRIP and LTRPA ?
2) It seems that they replacing the CPC (Cost per click) model to CPA (cost per action), why the revenue they get on booking should be better than the revenue the get from CPC ?
3) They are part of the fair search (anti google) so they are not going to sell to them, although it will be a great acquisition, google may compete with them for their business, why can't google take their business ?


Sionnach

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Re: TRIP - Tripadvisor Inc.
« Reply #11 on: February 10, 2016, 11:50:30 AM »
I think the fact that he bought both TRIP and LTRPA is interesting.

Is there any chance that it would be the sign of a pair trade?

http://thefritzblog.com/pair-trade-idea-liberty-tripadvisor-vs-tripadvisor/

LTRPA is trading at a discount despite a potential control premium.

Anyone know what could be going on here?
Short positions aren't disclosed in 13fs so it wouldn't show up in Arlington's.
Marathon Partners (shutterfly activist) also has small positions in TRIP + LTRPA

roark33

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Re: TRIP - Tripadvisor Inc.
« Reply #12 on: February 10, 2016, 12:32:25 PM »
I think this board, not just this specific company, would benefit from refraining to discuss who owns something.  An investment isn't better or worse based on who owns it. 

ccplz

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Re: TRIP - Tripadvisor Inc.
« Reply #13 on: February 14, 2016, 08:54:40 AM »
Doesn't Instant Booking make the OTAs redundant?


kab60

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Re: TRIP - Tripadvisor Inc.
« Reply #14 on: February 14, 2016, 09:02:21 AM »
Doesn't Instant Booking make the OTAs redundant?
I think they might serve different needs. If I know where I'm going and just need accomodation I would go to something like Hotels and not Tripadvisor. But I think Tripadvisor will benefit a lot from Instant Booking and I'd bet on it rather than OTA's.

KJP

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Re: TRIP - Tripadvisor Inc.
« Reply #15 on: February 14, 2016, 09:17:00 AM »
Doesn't Instant Booking make the OTAs redundant?

Not immediately.  Today, how Instant Booking works depends on whether or not the hotel has a direct relationship with TripAdvisor.  See here  https://www.tripadvisor.com/TripAdvisorInsights/n2513/faqs-instant-booking-tripadvisor   

If I understand the link correctly, if a hotel has a direct relationship with TripAdvisor and an OTA, then some of the instant bookings will be through the direct relationship and some through the OTA.  Of course, this is only the set up today.  You can see how one potential  endgame is for TRIP to successfully squeeze the OTAs out altogether by exploiting its position at the "top of the funnel" to gain control of the consumer relationships.  Once it has the consumer relationships locked up, the OTAs become essentially distributors, and TRIP will try to cut them out by expanding their direct relationships with hotels.   

ccplz

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Re: TRIP - Tripadvisor Inc.
« Reply #16 on: February 14, 2016, 09:46:56 AM »
Thanks for the link KJP. Very interesting.

KJP

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Re: TRIP - Tripadvisor Inc.
« Reply #17 on: February 14, 2016, 10:51:45 AM »
Thanks for the link KJP. Very interesting.

I think any investor in Priceline or Expedia has to ask themselves how a digital distributor succeeds when it does not control the digital relationship with the consumer.  What company in that strategic position has ultimately succeeded? 

ccplz

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Re: TRIP - Tripadvisor Inc.
« Reply #18 on: February 14, 2016, 11:58:48 PM »
Thanks for the link KJP. Very interesting.

I think any investor in Priceline or Expedia has to ask themselves how a digital distributor succeeds when it does not control the digital relationship with the consumer.  What company in that strategic position has ultimately succeeded?

The bull thesis for TRIP does make sense conceptually. For me the problem is actually valuing the company; although I do agree that, for long term investors, the stock is quite undervalued at current prices.

"As we look at the first half of 2016, we expect that these growth rates to decelerate further due to the tougher first half 2015 Meta CPC comps as well as near-term dilution of our instant booking roll out this quarter and next."

From the 2015 Q4 earnings call

Given that revenue per hotel shopper is higher for instant booking than traditional meta CPC, would you have an idea where this dilution is coming from?

KJP

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Re: TRIP - Tripadvisor Inc.
« Reply #19 on: February 15, 2016, 07:05:29 AM »


Given that revenue per hotel shopper is higher for instant booking than traditional meta CPC, would you have an idea where this dilution is coming from?

I don't know what is causing the revenue "dilution," which I understand to mean less revenue than TRIP otherwise would have if it had not rolled out Instant Booking.