TripAdvisor shares: Price analysis before buying or selling

Can I receive dividends when I buy TripAdvisor shares?

No

ISIN code: US8969452015

Ticker: NASDAQ: TRIP

Index or market: NASDAQ

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Elements to consider before selling or buying TripAdvisor shares

Analysis N°1

Buyouts of online travel booking portals that would allow TripAdvisor to expand its portfolio and gain market share.

Analysis N°2

The creation of a mystery shopper service that would allow the site to establish honest and objective opinions about the hotels listed on the site.

Analysis N°3

Finally, the evolution of the tourism market in the world is of course an important data that you must take into account because it is closely linked to the development of TripAdvisor's activities.

Analysis N°4

Firstly, all-in-one online travel portals such as Yatra or other sites that allow you to prepare all the elements of a trip are becoming more and more popular and are gaining more and more market share.

Analysis N°5

Similarly, the combination of hotel booking offers plus flights offered by some of TripAdvisor's competitors is a significant threat to TripAdvisor. So keep an eye on its efforts in this area

Analysis before buying or selling TripAdvisor shares

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General presentation of TripAdvisor

In just a few years, the American group TripAdvisor has succeeded in becoming one of the leaders in the field of online information in the travel and leisure sector. The company specialises in providing travellers' opinions, reviews and recommendations, as well as detailed and comprehensive information about the world's major tourist destinations.

The site provides information and reviews of hotels, restaurants and various leisure activities and attractions in tourist regions. The site also offers to compare the rates of the different hotels and to calculate the price of plane tickets, hotel rooms or car rental from the reservation sites of its partners.

TripAdvisor generates most of its revenue from the sale of online advertising space and subscriptions. This activity alone accounts for nearly 70% of its total revenue.

While almost everyone is familiar with the main site operated by the group which is TripAdvisor.com, the group also owns and operates other sites including Airfarewatchdog.com, Bookingbuddy.com, Cruisecritic.com, Daodao.com, Everytrail.com, Familyvacationcritic.com, Flipkey.com, Holidaylettings.co.uk, Holidaywatchdog.com, Independenttraveler.com, Onetime.com, Seatguru.com, Sniqueaway.com, Smartertravel.com, Travel-library.com, Travelpod.com, Virtualtourist.com, Whereivebeen.com or Kuxun.cn.

From a purely geographical point of view, the TripAdvisor group is an international group that is developing very well throughout the world. However, it still generates more than 54% of its revenue in the United States and 2.1% in the rest of North America. Europe and the Middle East account for 30.7% of its turnover, Asia-Pacific for 9.7% and Latin America for 3.5%.

Photo credits: ©junce/123RF.COM

The major competitors of TripAdvisor

TripAdvisor is one of the major leaders in its industry and enjoys growing popularity with users around the world. However, it must face competition from many other companies in this sector, some of which are very important and aggressive. So to better understand, here are the most important competitors of the TripAdvisor group:

Booking.com

This site is ranked number one in the comparative travel sites in many countries including France. Its success is due to a simple and ergonomic interface that offers a quick use and an advanced search engine for the Internet users.

Agoda

This competitor is also one of the most aggressive in the travel comparison business. Its site is known for quickly finding the cheapest prices on a very wide selection of hotels around the world - far more than most other sites in this sector.

Hotels.com

This competitor poses a real threat to TripAdvisor as it operates in a very similar way with the addition of a low cost restaurant search service. It is well positioned on the market thanks to a wide range of establishments of all kinds but has often been criticized for the lack of seriousness of its customer service.

Trivago

Finally, in the online price comparison sector, we can also mention Trivago, which is committed to offering its users the best possible prices for their holiday rentals. Here again, the ergonomics and modernity of its interface are two major assets with a panoramic view of some hotels and a rather satisfactory customer service.

The major partners of TripAdvisor

If the TripAdvisor group has succeeded in making a name for itself in the field of online information in the tourism sector, it is not without reason. Indeed, the American group relies heavily on strategic partnerships and alliances with other large companies, in addition to marketing partnerships with the hotels and establishments it refers. Here are some examples of the group's latest strategic alliances.

SNCF

In 2011, the American group set up a strategic partnership with the French company SNCF. Indeed, thanks to this alliance, restaurants, hotels and activities located near SNCF stations will be referenced by the TripAdvisor website and will therefore benefit from the opinions of Internet users.

Accor

In 2015, it is with the hotel chain Accor that the TripAdvisor group set up a commercial partnership. Indeed, the first hotel operator of the time with more than 3,700 hotels worldwide agreed to join the platform of the American giant. Thus, it is now possible for users of the site to book one of the 470,000 rooms of this chain directly online.

TakeAway

Finally, more recently in 2018, TripAdvisor partnered with TakeAway, the leading online meal delivery company in Europe. This partnership thus allows access to ordering meals in TakeAway's 31,000 partner restaurants from TripAdvisor's website or its app.

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The factors in favour of a rise in the TripAdvisor share price:

A good knowledge of a company's strengths and weaknesses is of course essential if you want to make a good analysis of its stock on the market. Indeed, TripAdvisor's strengths and weaknesses in relation to the competition are all elements likely to play a role in the company's ability to meet its future challenges.

Let's start our overview by discovering what are currently the major advantages and assets of this group and therefore its strengths to improve its growth in the years to come:

Firstly, we can of course highlight the effectiveness of the TripAdvisor group's international expansion strategy. Indeed, the company already has a particularly strong international presence with activities in 45 countries around the world, including the United States, the United Kingdom, India, France and Germany.
The growing popularity of the TripAdvisor website among the general public is of course also an asset that you should take into account. In just a few years of existence, the site has managed to attract more than 300 million unique visitors every month, which is well above the competition's figures.
Still among the qualities and assets of TripAdvisor, we can also talk about the innovations implemented by the group in order to meet the needs of customers. This includes the creation of new features such as the ability to book online or personalized recommendations that are an integral part of the loyalty strategy defined by the group.
Also from a strategic point of view, another strong point of TripAdvisor concerns its acquisition strategy. The company has indeed made several important acquisitions that have contributed to strengthening its brand image and making it a strong player in this sector.
We can also cite the current size of the TripAdvisor company as one of its main strengths. Indeed, the company currently employs around 3,000 people, making it a major player in this sector.
Finally, and still on the subject of TripAdvisor's strengths, we can recall that the company was a pioneer in the field of hotel and flight bookings, holiday rentals, but also restaurant searches and travel guides with a unique concept that has often been competed with but never equalled.

The factors in favour of a drop in the TripAdvisor share price:

If the TripAdvisor group benefits from many strengths as you have seen above, it also has its weaknesses that you must know before carrying out the analysis of its course and that can slow down its growth. Here are the main ones:

Although the group does everything it can to ensure the reliability of its services, a few years ago it was the victim of a theft of email addresses from its site's database. This affair, which was highly publicized, contributed to creating a feeling of insecurity among users and customers.
Finally, the TripAdvisor group has also been the target of numerous controversies regarding the validity of reviews posted on some hotels' listings with fraud by hoteliers. Although this issue has since been resolved and the reviews posted on the site are now verified, this problem has called into question the group's fundamental value proposition and may still deter the most wary customers from using the site.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

In which countries is TripAdvisor available?

The TripAdvisor website operates in different countries around the world as localized websites. Its services can be accessed from the UK, France, Ireland, Germany, Italy, Spain, India, Portugal, Brazil, Sweden, the Netherlands, Canada, Denmark, Turkey, Mexico, Austria, Norway, Poland, Australia, Singapore, Thailand, Russia, Greece, Indonesia and China, and of course the USA.

What were TripAdvisor's strategic acquisitions?

TripAdvisor Group has made many strategic acquisitions over its history including Flipkey in 2008, Holidaylettings in 2010, Tinypost in 2013, Jetsetter in 2013, CruiseCritic in 2013, Niumba in 2013, GateGuru in 2013, the Fork in 2014, Viator in 2014, Housetrip in 2016 and SinglePlatform in 2019. It is this acquisition strategy that has made it the industry giant that it is today.

How is the capital of the TripAdvisor group currently distributed?

Currently, the capital of TripAdvisor Group is divided between floating capital and capital held by some large private shareholders such as Liberty TripAdvisor Holding with 14.3% of shares, The Vanguard Group with 8.21% of shares, Eagle Capital Management with 6.68% of the shares, Capital Research & Management with 6.50% of the shares, Wellington Management with 5.89% of the shares, FIL Investment Advisors with 3.61% of the shares, Tcmi with 3.60% of the shares, Baillie Gifford & Co with 3.31% of the shares, BlackRock Fund Advisors with 2.39% of the shares and Matrix Capital Management with 2.90% of the shares.

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Analysis before buying or selling TripAdvisor shares