TripAdvisor
Needham, Massachusetts, United States
Industry: Travel Services
Region: US 🇺🇸
Year Founded: 2000
IPO Date: 12-20-2011
Market Cap: $2.38 billion
Number of Employees: Approx. 3,100
Revenue: $1.49 billion (2022)
Net Income: $20 million (2022)
TripAdvisor, Inc.
TripAdvisor IPO
Tripadvisor went public on December 21, 2011. The company debuted on the NASDAQ stock exchange under the ticker symbol “TRIP.”
The IPO was considered a success, raising approximately $326 million in its initial public offering. Since then, Tripadvisor has become one of the leading online travel platforms, offering a vast collection of user-generated reviews, travel-related content, and booking services.
TripAdvisor IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find TripAdvisor’s Prospectus here.
Company Overview & History
Tripadvisor is an American online travel platform that enables travelers to plan and book their trips with ease. The company was founded in February 2000 by Stephen Kaufer and Langley Steinert as a platform for travelers to share their experiences and reviews of hotels, restaurants, and attractions.
Over time, Tripadvisor has expanded its offerings and now provides a comprehensive range of travel-related services, including hotel bookings, flight reservations, vacation rentals, and restaurant reservations.
Today, Tripadvisor is one of the most trusted and widely-used travel platforms worldwide.
It boasts a vast community of travelers who contribute millions of reviews, ratings, and photos, helping fellow travelers make informed decisions.
With its extensive database of travel information and a user-friendly interface, Tripadvisor has become an indispensable tool for travelers seeking authentic insights and recommendations.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2020 | 0.693 | -0.289 | 0.053 | 0.142 |
| 2019 | 1.560 | 0.126 | 0.418 | 0.418 |
| 2018 | 1.616 | 0.113 | 0.401 | 0.401 |
| 2017 | 1.556 | 0.069 | 0.335 | 0.335 |
| 2016 | 1.480 | 0.120 | 0.352 | 0.352 |
| 2015 | 1.492 | 0.198 | 0.452 | 0.452 |
| 2014 | 1.246 | 0.364 | 0.364 | 0.364 |
| 2013 | 0.944 | 0.205 | 0.205 | 0.205 |
| 2012 | 0.763 | 0.042 | 0.042 | 0.042 |
| 2011 | 0.637 | 0.177 | 0.177 | 0.177 |
Business Model
Tripadvisor operates on a two-sided marketplace business model, connecting travelers with various travel service providers.
The company generates revenue primarily through advertising, click-based advertising, and booking commissions.
It offers advertising solutions to hotels, restaurants, and other travel-related businesses to promote their services on the platform. Additionally, Tripadvisor earns revenue by facilitating bookings and reservations through its website and mobile applications.
To enhance its business model, Tripadvisor has made strategic acquisitions, such as Viator and TheFork, to expand its offerings and provide users with a broader range of travel services.
These acquisitions have enabled Tripadvisor to diversify its revenue streams and strengthen its position as a leading travel platform.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2023 | 2.36 |
| 2022 | 2.52 |
| 2021 | 3.76 |
| 2020 | 3.87 |
| 2019 | 4.17 |
| 2018 | 7.43 |
| 2017 | 4.78 |
| 2016 | 6.75 |
| 2015 | 12.38 |
| 2014 | 10.67 |
| 2013 | 11.77 |
| 2012 | 5.98 |
| 2011 | 3.36 |
Risk Factors
As with any company operating in the travel industry, Tripadvisor faces various risk factors that could affect its business. These risks include:
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Dependence on online traffic and user engagement: Tripadvisor’s success relies heavily on maintaining a significant number of active users and high levels of user engagement on its platform. Any decline in website traffic or user engagement could adversely impact the company’s revenue and growth prospects.
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Competitive landscape: The online travel industry is highly competitive, with numerous players vying for market share. Tripadvisor faces competition from other travel platforms, online travel agencies, meta-search engines, and search engines. Intense competition could affect Tripadvisor’s ability to attract and retain users, as well as negotiate favorable partnerships with travel service providers.
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Technological disruptions: The rapid advancement of technology and changes in consumer behavior pose challenges and opportunities for Tripadvisor. Keeping pace with technological advancements, such as mobile applications, artificial intelligence, and data analytics, is crucial for Tripadvisor to remain competitive and deliver a seamless user experience.
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Regulatory and legal compliance: Tripadvisor operates in multiple jurisdictions and must comply with various laws and regulations related to data privacy, consumer protection, intellectual property, and competition. Non-compliance with these regulations could result in penalties, legal disputes, or reputational damage.
Market Opportunity
The travel industry presents a significant market opportunity for Tripadvisor. As more people embrace travel and seek personalized and unique experiences, the demand for online travel platforms continues to grow.
According to industry reports, the global travel market is expected to expand steadily in the coming years, driven by increasing disposable income, a growing middle class, and rising internet penetration.
Tripadvisor has positioned itself as a leading platform that offers comprehensive travel information and booking services, catering to the diverse needs of travelers.
By leveraging its extensive user-generated content, strong brand recognition, and partnerships with travel service providers, Tripadvisor is well-positioned to capitalize on the expanding market opportunity and drive further growth.
Competitors
- Booking.com
- Expedia
- Airbnb
- Google Travel
- Agoda
- Kayak
- Skyscanner
- Hotels.com
Key/Fun Company Facts
- Tripadvisor was originally named “TripAdvisor Media Group” and later rebranded to simply “Tripadvisor” to reflect its focus on the travel industry.
- The company was acquired by InterActiveCorp (IAC) in 2004, which later spun off Tripadvisor as a separate publicly traded company.
- Tripadvisor operates in over 49 markets and 28 languages, catering to a global user base.
- The platform features more than 860 million reviews and opinions covering over 8.7 million accommodations, airlines, experiences, and restaurants.
- In addition to its website, Tripadvisor offers mobile applications for iOS and Android devices, allowing users to access travel information and make bookings on the go.
- The company has received several accolades, including being named one of the “World’s Most Innovative Companies” by Forbes and one of the “Best Places to Work” by Glassdoor.