Why Is TripAdvisor Opening A Branded Travel Retail Store?

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TRIP: Tripadvisor logo
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Tripadvisor

In an effort to further promote its Instant Booking capabilities, TripAdvisor will be opening a first of its kind TripAdvisor-branded store at Raleigh-Durham International Airport. The store, set to open next year, as a part of the retail shops in the Terminal 2 of the airport, will offer gear required for travel including some items branded with the TripAdvisor logo, touch screens for browsing vacation destinations and hotels etc. The branded retail store will be launched in partnership with travel retailer Paradies Lagardere, which has a presence in around 100 airports across the world, where it operates around 850 stores and restaurants. TripAdvisor has an online store called The TripAdvisor Store currently, and the brick-and-mortar version might carry similar products to this one.

For close to three years now, TripAdvisor has been struggling to establish itself as a hotel booking website. Despite the favorable treatment it received from the industry suppliers resulting in 9 out of the top 10 global hotel chains to be present on its platform along with the world’s two leading OTAs (Priceline and Expedia), it seems that most travelers still consider TripAdvisor to be a metasearch and travel review platform and do not book their hotels on TripAdvisor. The company has been suffering from a persistent lack of traction for its Instant Booking to such a great extent that its share price has fallen by over 50% currently from its 2014 levels. There have also been rumors about it being acquired by one of the OTA leaders. TripAdvisor is contemplating on bringing back its TV advertisements to further educate customers about its booking capabilities. The retail store might be yet another step by the company to make consumers aware of the Instant Booking platform. If this strategy proves to be successful, we might encounter more TripAdvisor branded stores across the travel retail domain in the future.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for TripAdvisor
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