Trivago is basically a hotel search platform, whose main focus is to reopen the way travelers compare and search for hotels online. During this process, Trivago Hotels enables advertisers to expand their business, giving them access to a large consumer base who visit their platforms via a website or app.
Trivago was conceptualized in the city of Düsseldorf, Germany in the year 2005. The hotel aggregator was started by three university friends, Rolf Schrogmens, Peter Vinnmeier and Stephan Stubner. Similar to the majority of start-ups, the initial foundation of the business was laid from a garage. In addition, one of the 2006 founders, Stephen, decided to pursue a career in education, so Malte Sievert became part of the founding team. To date, Trivago's top management includes CEO Rolf Schrogmens, CFO Axel Heffer and COO Johannes Thomas
How Trivago Got Started And The Initial Day ?
Trivago started its operations in Germany and soon after the company started, it gained momentum and grew in various markets. At its launch, Trivego partnered with OTA (online travel agency) to meet its demands, following its objective of successfully showing information to consumers.
The hotel aggregator collected data from large hotels to littler organizations and showed it properly to hotel seekers. The company basically focuses on accumulating information from reliable sources so that customers can always be provided with reliable and most satisfactory services.
In addition, features such as filter and sorting functions allow every traveler to find the most ideal hotel room at the location of their choice. Trivago is equipped with a highly robust and robust server infrastructure, giving the company the necessary data center that will meet Trivago's high security standards, reliability as well as flexibility. All these features give its visitors and search engines the ability to search for direct and fast results for hotel rooms.
Trivago Growth And Rise In Popularity
Over the years, Trivago has developed extensively. Starting its operations from a garage, the hotel aggregator now employs about 5000 employees in its various offices worldwide. Trivago came with its first advertising campaign in the year 2008–09 when most travel organizations were not doing brand promotion. Trivago ran an effective TV advertising campaign in his native Germany. The proceeds from the brand promotion campaign were used by Trivago to expand its operations in Europe which is one of its most popular and successful markets to date.
The hotel aggregator started its operations from Germany and to date it has achieved tremendous growth with presence in over 190 countries of the world. It attracts over 120 million visitors to its platform on a monthly basis and is now rated as the largest hotel search website in the world. Currently, Trivago analyzes 900,000 hotels in 33 different languages from over 250 placements across the month.
Over the years, Trivego's customers have given more than 150 million hotel reviews with over 17 million photos. At the end of last year, the hotel aggregator provided more than 14.6 million bookings for budget as well as luxury hotels. In addition, Trivago is one of the most successful and fastest growing start-ups, not just in Germany but worldwide, whose profits have been growing manifold since 2008.
Trivago Service
Using Trivago's Hotel Manager, hoteliers can list their hotel through a profile on the Trivago website. Registration is free through the simple online form. Trivago Hotel Manager Basic is completely free to use, allowing you to list your hotel and benefit from the increased risk.
For an even more advanced triangle profile, you can join Hotel Manager PRO. This takes you one step above the original version by highlighting your contact details to enable hotel news prominently on your profile and encouraging viewers to contact you directly through your website or phone number. It also provides you with advanced analytical tools such as viewing visitors' profiles and competitor data so that you can target your audience more effectively.
Once you are registered with the Trivago Hotel Manager, you can assign your hotel to your hotel profile. You can add it if the hotel is not already on Tivago's list, although it takes up to seven days to get approval. You can manage multiple hotels in your account with an easy-to-use dashboard.
Once you have added your hotel, add detailed information, including contact details and eye-catching images, so that your hotel is attractive to visitors and arrives in relevant search results.
Trivago provides professionally written hotel descriptions for every hotel. These feature high-quality keywords to attract web traffic. Hotel reviews from other booking sites are automatically collided by Trivago search robots, contributing to the overall rating score for each hotel. Trivago also offers a rate connect service. This allows you to set up competitive cost-per-click advertising campaigns, track your performance, track through analytics, and control your marketing budget for the best success at the lowest cost. The service pays a set fee through an initial consultation
Trivago Business Model
01. Customer Segments
Trivago has a business model that is multidisciplinary. It mainly consists of two separate customer segments which are required for operations. It is to register brands that make their services available online to consumers who compare services as well as their prices to facilitate the purchase decision.
02. Value Proposition
There are mainly four primary value propositions that Trivago offers, namely access, customization, convenience, and brand / positioning.
The online hotel aggregator initially reduces accessibility by only enabling its customers to contribute to the content of their website. In addition, they are motivated to add lodging brands and text descriptions. Complete the missing profile, as well as edit the profile to ensure the quality of the content.
The website promotes customization only by allowing brands on its platform to personalize their user profiles. The facility is offered by allowing visitors to find hotel rooms and compare prices according to brands.
Also Read: MakeMyTrip - Success Story, Founder, Business Model, Funding, Revenue, News
Trivago App
Trivago offers a free app for its hotel search product on both mirror and Android. In addition to the hotel search feature, the app provides close proximity and interactive maps to the user's current location. The Trivago app is listed in Mashable's 25 apps to save you money, USA Today's 10 best apps for booking your stay, the independent app in Ireland to save you time and money, and Australia's News.com.au As one of the top. Apps to take on vacation. Current Location
Trivago Referral Revenue
Methods of earning income, commission from hotels listed on Trivago sites, called revenue, when the user clicks, include Trivago subscription fees paid by hotels for services provided by TRIVAGO's business model Trivago.Outbound Fee is a global hotel search platform. According to Trivago, its mission should be "the traveller’s first and independent source of information to find the ideal hotel at the lowest rate." Users can access Trivago in 55 local websites and applications (applications) and 33 countries. Trivago combines hotel content from various sources on its platform. These hotels are then displayed to users based on their search criteria. Trivago also claims to help users achieve the best rates by providing comparisons to over a million hotels on over 250 booking sites. However, users cannot book on Trivago; They can only select the hotel. For booking, they are redirecting to traditional OTAs (online travel agencies) such as Trains (PCLN), CTRP.com (CTRP), and Expedia (XPE). From search results in a particular hotel.
Trivago Geography Split
Trivago has classified its revenue into three geographical regions: America, developed Europe, and the rest of the world. For the nine months ended September 30, 2016, the US constituted 38.2% of Trivago's revenue, developed Europe constituted 47.2%, and the rest of the world constituted 13.6%. However, costs are increasing at a similar pace, which we will see in detail in the next part of this series. You can get in touch with Expedia (XPE) through the First Trust Dow Jones Internet ETF (FDN), which has a 3.0% stake in the company. FDN holds 1.7% stake in rival TripAdvisor (TRIP). However, Archery Train (PCLN) does not have any stake in it, in which Ctrip.com (CTRP), China's leading online travel agency player, has a stake.
Trivago Statistics
- 120+ million month site visitors
- Compares rates in over 1 million hotels
- Over 190 million hotel ratings
- There are more than 250 booking sites worldwide
- Websites in more than 50 countries
- More than 14 million photos
Also read: Dara Khosrowshahi: Turning The Tables For Uber
Swot Analysis
Strengths Of Trivago…
It compares hotel prices to 700,000+ hotels. Nearly 5 million monthly visitors reach the site, which reaches the hotel platform. Strong support by Expedia, a leading name in the travel industry, has 50 international forums.
Weakness Of Trivago….
Limited product offering. It only covers hotels and thus, does not cater to all aspects of travel. General competition means limited market share and low brand loyalty.
Opportunities For Trivago…
Acquisition of online travel booking portal to expand its portfolio. Increased interest in travel tie-ups with more hotels may increase its presence.
Threats For Trivago …
Expanding its portfolio to add flight, car and bus booking facilities, Flight Plus Hotel's combo packages presented by various portals are a major threat. The popularity of online travel portals erases a significant market share in India.
Also read: Deep Kalra: Travel Booking Made Easy Through MakeMyTrip
Partnership perks of Trivago
Listing your hotel on Trivago's website gives you the opportunity to see more than 120 million monthly visitors. It also shows overall reviews for your hotel from several booking sites. Depending on your hotel specialty on Trivago, you will reach a global audience of relevant travelers looking for a place to stay during your next travel adventure.
IPO Filing
01. Trivago, Expedia (XPEE) German-based hotel booking site, has filed for an IPO (initial public offering) in the United States.
02. It is seeking to list its ADRs (American Depository Receipts) on the Nasdaq under the symbol TRVG.
03. IPO will be filed through a holding company called Travel BV. The company plans to raise ~ $ 400.0 million, a placeholder amount that is subject to change.
04. Trivago has two classes of shares planned. Class A shares, currently organized by Trivago's management, include Rolf Schroemgens, Peter Vinnmeier and Malthe Sievert. These will be available for sale to the public under the Trivago IPO. Class B shares are held by Expedia.
05. Expedia acquired a controlling stake of 61.6% in Trivago. It paid $ 628.0 million in cash and stock, bringing the company's value to ~ $ 1.0 billion. The acquisition was in line with Expedia's plan to expand its global presence
Also read: Best Airbnb Business Model For Your Business
Brand Awarenness
In recent times, Trivago has emerged as one of the most successful brands in its category. According to the data, Trivago enjoys the most impressive aided brand awareness over its rivals in key areas of its operations. The hotel aggregator which entered the USA in 2012 managed to claim a 63 percent aided brand awareness mark compared to Expedia (80 percent). Furthermore, due to its branding efforts, Trivago saw some significant growth in the US market and in the 6 years of its presence, it has emerged as one of the biggest players in the industry.
Analyzing Trivago’s Financials:
Revenue at the expense of advertisements increased 90.0% CAGR (compound annual growth rate) from 2010 to 2013 in Trivago's revenue. As the Trivago market matures, growth rates will decline, as is evident from recent trends. Revenue increased 43.0% in 2015 to $ 324.6 million compared to $ 253.0 million in 2014. For the nine months ended September 2016, revenue grew 38.0% year-over-year to $ 657.4 million. Remnants for the US and the rest of the world are expected to grow at a faster rate than developed Europe. Because they are new markets compared to Europe. As a result, brand awareness and penetration is already high in Europe, leading to moderate growth in the region
Ever Growing Success Of Trivago
- Initially, Trivago received one million euros from angel investors - Christian Vollmann and Florian Hahnemann.
- In the year of 2008, Trivago decided to take the help of TV commercials to develop its business. This move was because the top management believed that solely on the basis of Google and other search engines to promote the business could prove unsafe in the long run.
- Over the last 11 years, Trivago has been tasting success and expanding. The organization, which had funding of just € 1.4 million in 2008, was able to achieve revenue of 1.035 billion by the end of 2017.
- The hotel aggregator entered the US market in 2012 and entered into a joint venture with Expedia, an American travel organization. Expedia acquired a 61.6% stake in Trivago for US $ 632 million in the year of 2013 and thus claimed the majority of the organization's stock.
- In the same year, Trivago entered the Asian market and India became the first country to operate in Asia.
- In the month of December 2016, Trivago achieved another feat as it successfully listed on the symbol of the NASDAQ TRVG ticker. By that time, Trivago had hired over 1000 employees in its various offices worldwide.
Traffic on the Trivago continues to increase with each passing year. And, compared to the previous year, Trivago's traffic expanded by 25% in the year 2018. - Trivago has been acquiring large and small businesses for the past few years and its most recent acquisition was TripHappy for an undisclosed sum in the month of May 2018.
Link : https://startuptalky.com/trivago-case-study-how-they-earn/
Author :- Krishna kumar
June 07, 2020 at 09:47PM
StartupTalky - Your Entrepreneurial Journey Starts Here!