TripAdvisor TRIP recently launched an annual subscription plan, Tripadvisor Plus, to help travelers save more money and enjoy their travel with more experiences.
Currently, TripAdvisor Plus is available in the United States for just $99 a year, offering value-added reward and endless travel savings with one membership.
The subscription provides savings on around 400 thousand bookable experiences on TripAdvisor including tickets, tours and attractions, access to savings on rental car and benefits from Hertz, customized travel advice from Trip insiders as well as additional benefits and deal alerts.
The latest move is likely to expand TripAdvisor’s reach to travelers due to pent-up demand, in turn driving top-line growth.
Markedly, the company reported revenues of $123 million for first-quarter 2021, down 65% year over year due to negative impact of coronavirus-induced lockdowns, and travel restrictions across Europe as well as international markets. However, revenues increased 6% sequentially, primarily driven by an improved U.S. travel market.
Recovery in the U.S. leisure travel market is expected to gain momentum as vaccination drive reaches more people, thereby boding well for the adoption of TripAdvisor Plus. Additionally, the company extended partnership with Trip.com to benefit from the launch of Tripadvisor Plus.
TripAdvisor, Inc. Price and Consensus
TripAdvisor, Inc. price-consensus-chart | TripAdvisor, Inc. Quote
TripAdvisor’s Initiatives Bolster Prospects
TripAdvisor is making strong efforts to widen reach to travelers with new launches and services as well as attractive deals and partnerships. TripAdvisor Plus is a step forward in that direction.
TripAdvisor recently collaborated with WarnerMedia's streaming platform, HBO Max, to celebrate pride and support LGBTQIA+ travelers who are willing to participate in Pride when there will be events across the United States. The alliance will promote Pride curated programming available to stream on HBO Max during the month of June. The partnership reflects TripAdvisor’s focus on diversifying the customer base.
Moreover, TripAdvisor introduced live data intelligence dashboard for destination marketing organizations. The new live sentiment dashboard, backed by Tourism Sentiment Index, is expected to aid in global tourism recovery.
Further, TripAdvisor teamed with Reckitt to support the disinfection of 8 million tourism and hospitality businesses listed on its platform to boost confidence among travelers.
Demand Recovery to Fuel Competition
TripAdvisor’s latest endeavors are expected to boost its competitive prowess.
Markedly, travel agencies witnessed a severe downturn due to the coronavirus pandemic. However, the rising vaccination drive and lifting of restrictions in many parts of the world are improving the travel agency market’s prospects.
According to the U.S. Travel Association’s Monthly Travel Recovery Data Report, around nine out of ten American travelers have traveling plans in the next six months. Also, according to a poll conducted by the Global Business Travel Association (GBTA), 74% of the GBTA buyer and procurement respondents feel that their employees are willing to travel for business in the current scenario.
Moreover, the recent Tripadvisor research reveals that 74% of vaccinated U.S. travelers have plans of summer trips this year. While 52% are likely to travel domestically, around 22% expect to travel abroad.
The upbeat scenario will benefit not only TripAdvisor but also other players including Booking Holdings BKNG-owned Booking.com, Agoda, Priceline.com, Expedia EXPE-owned Expedia and Hotels.com, Airbnb ABNB and others.
Booking.com recently collaborated with the Friends Experience flagship in New York City, letting fans of the show ‘Friends’ to enjoy an overnight stay in the apartment, used by the casts of the show, for just $19.94.
Meanwhile, Expedia recently announced Expedia Travel Week, biggest sale of the year between Jun 8 and Jun 12, to help travelers plan their next trip, featuring savings on more than 30 thousand hotels, 800 activities, cruise lines and more.
Moreover, Airbnb collaborated with Expedia’s Vrbo for developing the Community Integrity Program to address community safety by providing important information on listings and taking actions on repeat party house offenders.
Nevertheless, the launch of low-cost subscription plan TripAdvisor Plus is expected to be a game-changer for TripAdvisor in the near term. Markedly, for the second quarter of 2021, this Zacks Rank #3 (Hold) company expects revenues and adjusted EBITDA to improve sequentially.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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