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What Could Drive TripAdvisor’s User Base?

Andrew Brunton
What Could Drive TripAdvisor’s User Base?

Will TripAdvisor Stock Keep Its Momentum Alive in 2019?(Continued from Prior Part)## Unique visitorsTripAdvisor’s (TRIP) strong effort toward improving its user base through marketing initiatives and continuously enhancing its mobile-centric product design has been attracting new users. The online travel agency’s average monthly unique visitors grew 8% YoY (year-over-year) to 490 million users in the third quarter. The unique visitor growth averaged 10% in the first three quarters of 2018.In the third quarter, user reviews on the company’s website grew 23% YoY to 702 million reviews. The growth helped TripAdvisor create brand awareness and drive users to its website.TripAdvisor managed to report YoY growth for the revenue per shopper metric for the first time in the last 13 quarters. The metric improved 5% YoY to $0.41 due to mobile device monetization.During the third quarter, desktop and tablet devices drove 10% of the revenue per hotel shopper growth, while mobile devices contributed 25% of the growth. TripAdvisor’s efforts toward enhancing mobile-centric product design and test-and-learn velocity led to a 40% increase in mobile click-based revenues. Mobile hotel shoppers increased 12% in the third quarter and contributed 50% of the total hotel shoppers for the first time in the company’s history.## What’s ahead?TripAdvisor’s unique visitors are expected to continue to grow as more users shift to booking travel online and on mobile devices. For the next few quarters, the company’s management will focus on increasing the revenue per hotel shopper, which is a critical business metric. The company expects revenue per hotel shopper growth and click-based revenue growth to improve in the fourth quarter—compared to the third quarter.Investors could gain exposure to TripAdvisor by investing in the First Trust Dow Jones Internet ETF (FDN), which has allocated 1.6% of its funds in the company. FDN has invested 2.5% of its funds in Expedia (EXPE) stock. FDN doesn’t have any holdings in Trivago N.V. (TRVG) or Ctrip.com International (CTRP).Continue to Next PartBrowse this series on Market Realist: * Part 1 - TripAdvisor in 2018: Fourth-Best Performer in the S&P 500 * Part 2 - Non-Hotel Segment: TripAdvisor’s Key Revenue Growth Driver * Part 4 - TripAdvisor’s Top and Bottom Line: Analysts’ Expectations