Trivago and TripAdvisor are paying the price for putting all their eggs in a single basket with Priceline and Expedia cutting back on their their meta-search spend, forcing Trivago in particular to reassess its business model.
“Obviously Priceline has been the most vocal about pulling back,” said Lloyd Walmsley, Director Deustche Bank Securities at the recent Phocuswright conference.
“They’ve spent a lot of money on Trivago over the last two years (effectively) funding a competitor in search channels and I think it makes eminent sense to kind of try to reset that auction.
“I think it makes sense to be building a brand. Google is going to move further and further into the travel vertical and that poses obvious risks if you don’t have a strong brand.”
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Read also "How travel metasearch is changing," and "TripAdvisor tanking, more visitors, less bookings"