Author Topic: TRIP - Tripadvisor Inc.  (Read 120108 times)

scorpioncapital

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Re: TRIP - Tripadvisor Inc.
« Reply #340 on: March 11, 2019, 11:17:11 AM »
Yeah. I actually think also the entire booking business of hotels is in jeopardy. I mean when you click on your hotel and Expedia, booking etc..come up with the prices, perhaps 5-7 listings. The prices are almost identical. Except for perhaps some reputational value and an aggregated account, I don't care which one I buy through. However, if it is something more exclusive like an apartment it might be different as prices can differ substantially in one street I suppose and might be exclusive to a particular platform.


patientcapital

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Re: TRIP - Tripadvisor Inc.
« Reply #341 on: March 11, 2019, 11:28:18 AM »
Bingo.

I think if you look to the airfare business, all the margin for the OTAs has been sucked out, and they pretty much abandoned that line of business. Hotels will probably look similar in the future.

The biggest difference between hotels and airlines is that there are tons of hotels and fewer airlines, so it's a much harder search problem to solve. The invention of metasearch all but solved that issue, and made the process somewhat easy.

You're right, there's too many booking engines all offering the same hotels at the same price. It doesn't make sense. That's especially the case for the hotel itself who is paying 15% to those commoditized OTAs.

Google hates vertical/metasearch (per my February post), and they intend to capture those $ for themselves, as well as divert customers to the hotel itself. They'll do this all while capturing a bigger piece of the total pie.

Google is the real play here. I wish I bought it back in 2012 when it was trading for like 12-15x earnings. Really stupid on my part.
« Last Edit: March 11, 2019, 11:30:36 AM by patientcapital »

scorpioncapital

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Re: TRIP - Tripadvisor Inc.
« Reply #342 on: March 11, 2019, 11:38:05 AM »
Do you think governments (I think EU tried it) will force Google to share the space with the 'soon to be dying' competitors? )


patientcapital

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Re: TRIP - Tripadvisor Inc.
« Reply #343 on: March 11, 2019, 02:38:29 PM »
Hard to know the answer to that question. Anything is possible when you have wacky politicians on either side of the aisle (at least here in the USA where I am).

I don't know about that kind of regulation, but I do think there are other forms of regulation about privacy or monetizing user data that are very possible. IMO the biggest risk for any of these tech giants is government regulation. But that makes a pretty good business if you ask me - their biggest risk is that they are too good of a business.

I like Peter Thiel's explanation - real monopolies try to make it look like they aren't monopolies.  Crummy businesses try to make it look like they are more dominant than they are.


patientcapital

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Re: TRIP - Tripadvisor Inc.
« Reply #344 on: November 14, 2019, 11:23:15 AM »
Below is a link that further discusses what we discussed earlier in this thread - how google is squeezing out companies like TRIP that rely on free google traffic.

https://stratechery.com/2019/the-google-squeeze/

walkie518

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Re: TRIP - Tripadvisor Inc.
« Reply #345 on: November 15, 2019, 07:38:01 AM »
Below is a link that further discusses what we discussed earlier in this thread - how google is squeezing out companies like TRIP that rely on free google traffic.

https://stratechery.com/2019/the-google-squeeze/
While I agree with the gist of this article, I am not certain all is lost.

In organic search, tripadvisor seems to come in first for restaurants or hotels whenever I've tested since the awful quarter.  Should TRIP choose to spend more on advertising w/Google, they will be on the top.  Then again, Google will wind up with a little bit less money but more than what they're currently generating. 

Tangential but I must note that it's also a little gross what has happened to Google.  At one point, they did no evil.  Now, the platform is mostly ad-driven and it's less of a useful experience--this might hint to a Foxification of the internet where opinions drive narratives.  Also, that youtube is filled with ads justifies paying for content from other providers?