TripAdvisor revenue falls
TripAdvisor’s quarterly revenue fell 3 percent, missing analyst estimates, as a rise in hotel bookings on its websites hurt revenue from referrals to third-party sites.
TripAdvisor has been allowing users in the US and the UK to reserve hotels directly on its websites since 2014, charging hotels a fee for the bookings. The feature was rolled out globally in the first quarter.
The company, whose profit also fell more than expected, said that referral revenue dropped 13.3 percent to US$189 million in the quarter.
TripAdvisor-branded display-based advertising and subscription revenue, rose 11 percent in the period.
The company’s results follow those of larger travel website operator Expedia, which posted a surprise first-quarter profit last week, helped by acquisitions of Orbitz Worldwide Inc, Travelocity and HomeAway.