Love it or hate it, TripAdvisor has certainly been at the forefront of many accommodation owners’ minds for some time now. Every B&B owner knows the joyous feeling that comes from getting a great review and the misery of getting a bad one – particularly if they suspect it is malicious or fake.
But TripAdvisor can only keep growing – and becoming more and more influential – if it can keep generating bigger and bigger profits. According to Bloomberg and the Wall Street Journal, its shares plunged as much as 24% after second-quarter revenue didn’t live up to analysts’ expectations. As Bloomberg observes, “The company is facing headwinds from the sputtering economy and the credit crisis in Europe, which has crimped consumer spending.”
Here are the details:
- TripAdvisor Inc.’s second-quarter earnings slipped 1.9% as its expenses increased.
- Selling and marketing expenses jumped 22% and technology and content expenses climbed 61%.
- Total costs and expenses jumped 33%.
- Click-based advertising revenue rose 13% year over year, but represented a slowdown from the 20% year-over-year growth seen in the first quarter.
Is it just a blip? Or is it the beginning of a larger trend, where TripAdvisor will cease to be as dominant? Only time will tell.
Read More: http://bloom.bg/Ml8p94