Tripadvisor Case Study

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Introduction The tourism industry is changing. The internet and customer reviews have changed the whole environment in which tourism is conducted. One of the biggest contributors to this change is TripAdvisor. TripAdvisor (NASDAQ: TRIP) is a website which allows the customer to find the information about the tourist location and see the feedback from the people. TripAdvisor altered the booking habit of the customers as now the customers are not solely dependent upon the official presentation of the hotel staff, but they also have access to the experiences of the other customers that can provide the picture in true light. Probably that is the reason TripAdvisor has turned into a necessary step before booking any hotel or restaurant or planning…show more content…
The purpose of this paper is to analyse the problems, and identify the company’s internal and external factors which influence the company’s management and decision making problems. Thus, analysing the crucial issues and current strategy of the company entailed the strategic question’s formulation for this paper in the following form: TripAdvisor has been empowering users to plan and book their travels as a stand-alone company for five years. For the last year its revenue increased by 61 million dollars; however, TripAdvisor's revenue growth is decreasing year over year and for the same period it dropped from 39% to 17%. What strategy should the company develop and implement in order to achieve a long-term competitive advantage and grow revenue? The paper also provides possible solutions for improving TripAdvisor’s business operations and revenue earning capability. The idea is to understand the strategical changes the…show more content…
At the beginning the company worked on the B-2-B portal, but soon the absence of clients was felt by the CEO of the company. The company then realized the need to get revenue and focused on the other ventures like online advertisement and the cost per click to generate revenue. The company made $70,000 profit in 2002 (4). In 2004, the company was acquired by InterActive Corp or IAC. In 2005, the company became the part of the company’s travel line business also known as Expedia, Inc. Future years saw the expansion of the website into the other languages like German, Italian, French etc. In 2009, the company branched beyond the hotels and ventured into the flights and vacation rentals. The company also acquired many smaller companies as well. Overall the company’s future looked perfect, with the rise in revenue and interest of the public (5). Now the company has branched out as an independent company on the Wall Street after Expedia spun off it in 2011 in a public

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