Tripadvisor faces growing competitive and financial pressure

Slowing growth and market share losses raise concerns about long-term relevance

Tripadvisor is losing momentum in a travel market where its major competitors are accelerating. Recent financial results show slowing revenue growth, declining bookings, and widening performance gaps versus Expedia, Booking Holdings, and Airbnb. While management has announced a restructuring plan aimed at improving efficiency and margins, the measures appear insufficient to offset deeper challenges around demand, brand relevance, and competitive positioning. As a result, Tripadvisor’s outlook has weakened, prompting a downgrade in its investment appeal.

Key takeaways

• Revenue growth is decelerating: Tripadvisor reported low single-digit revenue growth that missed expectations, contrasting sharply with stronger performance from other major online travel platforms.
• Core hotel booking business is shrinking: The Tripadvisor-branded OTA segment showed a year-over-year decline, indicating weakening demand and loss of relevance among travelers.
• Competitors are gaining momentum: Expedia, Booking Holdings, and Airbnb all reported accelerating bookings growth, highlighting a market share problem specific to Tripadvisor rather than a broader travel slowdown.
• Viator shows relative strength but faces risks: The experiences segment continues to grow faster than the core platform, but high cancellation rates and rising competition from peers limit its upside.
• Restructuring impact is limited: Planned cost savings from organizational changes represent a modest margin improvement that is unlikely to offset continued top-line weakness.
• Profitability remains under pressure: Adjusted EBITDA margins are declining, particularly within the Tripadvisor brand, reducing the effectiveness of cost-cutting efforts.

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