In recent years, Google has made frequent changes to its search results pages, affecting competing businesses like Tripadvisor. Tripadvisor recently reported a muted outlook across its major businesses, attributing the softness to changes in Google’s travel search results pages. These changes have impacted Tripadvisor’s revenue and EBITDA margins, leading to a cautious view on full-year expectations for 2024. The changes in Google’s search engine results pages began late last year and continued into the first quarter, affecting Tripadvisor’s hotel metasearch, tours and activities brand Viator, and dining reservations platform TheFork.
Despite the challenges from Google, Tripadvisor remains optimistic about its future. The company’s teams are working to mitigate the adverse changes and are exploring other channels such as the Tripadvisor app and paid marketing efforts. Officials stated that the Tripadvisor app is performing well, and Tripadvisor and Viator have an advantage as Google partners. While Tripadvisor is facing pressure from Google, it is actively seeking solutions to adapt to the changing landscape and maintain its competitive edge in the travel industry.
Tripadvisor’s share price fell nearly 30% after the announcement of Google’s impact on its financial results. The company’s controlling shareholder, Liberty Tripadvisor, also announced that a sale proposal received in February would not result in a deal. Talks are ongoing between Liberty Tripadvisor and a Tripadvisor special committee about potential strategic alternatives. Despite the setbacks, Tripadvisor remains focused on navigating the challenges presented by Google’s search engine results pages and finding new opportunities for growth.
While Tripadvisor did not detail the specific changes Google made to its travel search results pages, it is clear that the impact has been significant. Recently, Google’s algorithmic changes have de-indexed and penalized websites that it believes do not offer high-value content, potentially affecting Tripadvisor’s performance. Trivago, a competitor offering hotel price shopping, has also highlighted challenges with Google’s advertising formats, including the use of carousels and a decrease in text ads. The Digital Markets Act in the European Union has also impacted the way travel search results are displayed on Google, adding to the complexity of the situation.
Despite the challenges posed by Google, Tripadvisor is focused on finding bright spots for the company. The Tripadvisor app and paid marketing efforts are showing promise, and Tripadvisor remains a Google partner, giving them an advantage in navigating the changes. While the company is taking a cautious view on expectations for 2024, Tripadvisor is actively working to adjust to the shifting landscape and capitalize on opportunities for growth. With ongoing discussions about potential strategic alternatives and a commitment to mitigating the impact of Google’s changes, Tripadvisor remains determined to overcome these challenges and emerge stronger in the ever-evolving travel industry.
