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For the best price.
ABOUT
TRIVAGO
Trivago, is a German
multinational technology
company specializing in
internet-related services and
products in the hotel, lodging
and metasearch fields.
Trivago was the first hotel
search engine in Germany,
and is one of the fastest
growing companies in
Germany, with profitability
doubling since 2008.
Expedia, Inc. owns a majority
of the company's stock.
Strong brand and its hotel
network
Unique Selling Proposition
The world’s largest hotel
search
Tagline
Online Travel-Flight, bus and
train tickets, hotels etc
Sector
BUSINESS MODEL
Hotel Price Comparison Website
As a hotel price comparison website, Trivago makes money
from advertising partners primarily using a cost-per-click
(CPC) business model. Booking platforms, hoteliers and other
providers list rates and advertise on the Trivago site, paying
for the clicks received from Trivago users.
Trivago also offers free and fee-based versions of its Hotel
Manager product, which allows hoteliers to manage their
online presence and visibility on the Trivago site. Trivago
claims to be the world's largest online hotel search site,
comparing rates from over 1 million hotels and more than
250 booking sites worldwide. Since their majority
shareholder is Expedia, the effort is to direct bookings to their
sites by way of various "adjustments" to how other sites' rates
are perceived.
HOTEL SEARCH
The Hotel Search Engine…
Trivago's hotel search engine was the first of its
kind in Germany and has websites in 50+
countries. Trivago claims to be the world's
largest online hotel search site, comparing rates
from over 1 million hotels and more than 250
booking sites worldwide. The site includes over
190 million hotel ratings, 14 million photos
and over 120 million visitors monthly.
Trivago's search tool scans hotel booking sites
for prices, availability, images and reviews
within seconds. When users choose a hotel,
they are redirected to a partner website to
complete the booking.
TRIVAGO
APP…
Trivago offers a free app for its Hotel Search
product on both iOS and Android. In addition to
the hotel search feature, the app provides
interactive maps and displays accommodations
in close proximity to the user's current location.
The Trivago App has been listed in Mashable's
25 Apps to save you money, USA Today's 10 best
apps for booking your stay, the Independent in
Ireland as an app to save you time and money
and Australia's News.com.au as one of the top
apps to take on holiday.
Current Location
referral revenue.
Revenue
Earning ways
Commissions
from hotels
listed on Trivago
sites, which is called
Revenue is
earned when
users click
It includes fees
paid by hotels for
services provided
by Trivago
Subscription
Fee
TRIVAGO’S
BUSINESS MODEL
Trivago is a global hotel search platform. According to
Trivago, its mission is to “be the traveler’s first and
independent source of information for finding the ideal
hotel at the lowest rate.” Users can access Trivago
through 55 localized websites and apps (applications)
and across 33 countries.
Trivago combines hotel content from various sources on
its platform. These hotels are then displayed to users
based on their search criteria. Trivago also claims to help
users get the best rates by providing a comparison for a
million hotels on more than 250 booking sites.
However, users can’t book on Trivago; they can only
choose the hotel. For booking, they’re redirected to
traditional OTAs (online travel agencies) such as
Priceline (PCLN), Ctrip.com (CTRP), and Expedia (EXPE).
on a particular
hotel from the
search results.
GEOGRAPHY SPLIT
Trivago has categorized its revenue across three geographies: the
Americas, Developed Europe, and the Rest of World. For the nine
months ended September 30, 2016, the Americas formed 38.2%
of Trivago’s revenue, Developed Europe formed 47.2%, and the
Rest of World formed 13.6%.
However, costs have been growing at a similar pace, which we’ll
look at in detail in the next part of this series.
You can gain exposure to Expedia (EXPE) through the First Trust
Dow Jones Internet ETF (FDN), which has 3.0% of its holdings in
the company. FDN also has a 1.7% holding in rival TripAdvisor
(TRIP). However, it doesn’t have any stake in archrival Priceline
(PCLN), which has a stake in Ctrip.com (CTRP), China’s leading
online travel agency player.
It compares hotel
prices from
700,000+ hotels
Monthly close to
50 million visitors
access the site
Trivago Hotel Manager
platform helps hoteliers
to enhance their
business positioning,
thus fostering good
relationship with hotels.
Strong backing by
Expedia, which is
a major name in
the travel
industry
It has 50
international
platforms.
STRENGTHS…
Weeknesses
1. Limited product offering.
It only covers hotels and
thus, does not cater to all
facets of travel
2. Intense competition
means limited market share
& less brand loyalty
Acquisition of online
travel booking portals
to expand its portfolio.
Increasing interest
of people in travel
Tieups with more hotels
can boost its presence
Opportunities…
Expansion of its portfolio to add
flight, car and bus booking
facilities
Combo packages of flight plus
hotel offered by various portals is
a big threat
Popularity of online travel portals
erodes away a significant market
share in India.
THREATS…
IPO FILING…
01 Trivago, Expedia’s (EXPE) German-based hotel booking site, has filed
for an IPO (initial public offering) in the United States.
02 It’s seeking to list its ADRs (American Depositary Receipts) on
Nasdaq under the symbol TRVG.
03
The IPO will be filed through a holding company called Travel BV.
The company plans to raise ~$400.0 million, a placeholder amount
that may change.
04
Trivago plans to have two classes of shares. Class A shares, currently
held by Trivago’s management, includes Rolf Schroemgens, Peter
Vinnemeier, and Malte Siewert. These will be available for sale to the
public under the Trivago IPO. Class B shares are held by Expedia.
05
Expedia acquired a controlling stake of 61.6% in Trivago. It paid
$628.0 million in cash and stock, valuing the company at ~$1.0
billion. The acquisition was in line with Expedia’s plan to expand its
global presence.
TRIVAGO’S IPO JOURNEY
2017Nov 2016July 2016201520122005
Trivago was founded
in Duesseldorf,
Germany, and has
grown to be one of
Germany’s most
successful startups of
the past decade.
Duesseldorf remains
its headquarters.
Expedia bought a
61.6% stake in
Trivago, paying
about $628.0
million in cash
and stocks. Both
Trivago and
Expedia agreed to
put in a put/call
window.
This date
marked the
first window
closure of the
put/call
window,
which was
postponed
to March
2017.
Expedia’s CEO
Dara
Khosrowshahi
said the two
companies would
work toward
filing a Trivago
IPO
Trivago filed
for an IPO.
Trivago filed for
an IPO. The IPO
is expected to
close.
Analyzing Trivago’s Financials:
Revenue at the Cost of Ads
Trivago’s revenue has risen an impressive 90.0% CAGR
(compound annual growth rate) from 2010 to 2013. As
Trivago’s markets mature, the growth rate will decline, as is
evident from recent trends.
Revenue rose 43.0% in 2015 to $324.6 million compared to
$253.0 million in 2014. For the nine months ended in
September 2016, revenue rose 38.0% year-over-year to
$657.4 million.
Revenues for the Americas and the Rest of the World are
expected to rise at a faster pace than Developed Europe. That’s
because they’re newer markets than Europe. As a result, brand
awareness and penetration are already high in Europe,
leading to moderate growth in the region.
Revenue Growth
BALANCE SHEET
EFFORTS BY-
ANIRUDH YADAV - 5380
ANJALI KUMARI - 5413
ANJEET YADAV - 5377
ANKIT - 5389
ANKITA KUSUM - 5397
ANKITA SAXENA - 5415
ANKUR VERMA - 5423
ANUBHAV RAJ CHAURSIA - 5458

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Trivago - one of the largest hotel search engine

  • 1. Find your ideal hotel.. For the best price.
  • 2. ABOUT TRIVAGO Trivago, is a German multinational technology company specializing in internet-related services and products in the hotel, lodging and metasearch fields. Trivago was the first hotel search engine in Germany, and is one of the fastest growing companies in Germany, with profitability doubling since 2008. Expedia, Inc. owns a majority of the company's stock. Strong brand and its hotel network Unique Selling Proposition The world’s largest hotel search Tagline Online Travel-Flight, bus and train tickets, hotels etc Sector
  • 3. BUSINESS MODEL Hotel Price Comparison Website As a hotel price comparison website, Trivago makes money from advertising partners primarily using a cost-per-click (CPC) business model. Booking platforms, hoteliers and other providers list rates and advertise on the Trivago site, paying for the clicks received from Trivago users. Trivago also offers free and fee-based versions of its Hotel Manager product, which allows hoteliers to manage their online presence and visibility on the Trivago site. Trivago claims to be the world's largest online hotel search site, comparing rates from over 1 million hotels and more than 250 booking sites worldwide. Since their majority shareholder is Expedia, the effort is to direct bookings to their sites by way of various "adjustments" to how other sites' rates are perceived.
  • 4. HOTEL SEARCH The Hotel Search Engine… Trivago's hotel search engine was the first of its kind in Germany and has websites in 50+ countries. Trivago claims to be the world's largest online hotel search site, comparing rates from over 1 million hotels and more than 250 booking sites worldwide. The site includes over 190 million hotel ratings, 14 million photos and over 120 million visitors monthly. Trivago's search tool scans hotel booking sites for prices, availability, images and reviews within seconds. When users choose a hotel, they are redirected to a partner website to complete the booking.
  • 5. TRIVAGO APP… Trivago offers a free app for its Hotel Search product on both iOS and Android. In addition to the hotel search feature, the app provides interactive maps and displays accommodations in close proximity to the user's current location. The Trivago App has been listed in Mashable's 25 Apps to save you money, USA Today's 10 best apps for booking your stay, the Independent in Ireland as an app to save you time and money and Australia's News.com.au as one of the top apps to take on holiday. Current Location
  • 6. referral revenue. Revenue Earning ways Commissions from hotels listed on Trivago sites, which is called Revenue is earned when users click It includes fees paid by hotels for services provided by Trivago Subscription Fee TRIVAGO’S BUSINESS MODEL Trivago is a global hotel search platform. According to Trivago, its mission is to “be the traveler’s first and independent source of information for finding the ideal hotel at the lowest rate.” Users can access Trivago through 55 localized websites and apps (applications) and across 33 countries. Trivago combines hotel content from various sources on its platform. These hotels are then displayed to users based on their search criteria. Trivago also claims to help users get the best rates by providing a comparison for a million hotels on more than 250 booking sites. However, users can’t book on Trivago; they can only choose the hotel. For booking, they’re redirected to traditional OTAs (online travel agencies) such as Priceline (PCLN), Ctrip.com (CTRP), and Expedia (EXPE). on a particular hotel from the search results.
  • 7. GEOGRAPHY SPLIT Trivago has categorized its revenue across three geographies: the Americas, Developed Europe, and the Rest of World. For the nine months ended September 30, 2016, the Americas formed 38.2% of Trivago’s revenue, Developed Europe formed 47.2%, and the Rest of World formed 13.6%. However, costs have been growing at a similar pace, which we’ll look at in detail in the next part of this series. You can gain exposure to Expedia (EXPE) through the First Trust Dow Jones Internet ETF (FDN), which has 3.0% of its holdings in the company. FDN also has a 1.7% holding in rival TripAdvisor (TRIP). However, it doesn’t have any stake in archrival Priceline (PCLN), which has a stake in Ctrip.com (CTRP), China’s leading online travel agency player.
  • 8.
  • 9. It compares hotel prices from 700,000+ hotels Monthly close to 50 million visitors access the site Trivago Hotel Manager platform helps hoteliers to enhance their business positioning, thus fostering good relationship with hotels. Strong backing by Expedia, which is a major name in the travel industry It has 50 international platforms. STRENGTHS…
  • 10. Weeknesses 1. Limited product offering. It only covers hotels and thus, does not cater to all facets of travel 2. Intense competition means limited market share & less brand loyalty
  • 11. Acquisition of online travel booking portals to expand its portfolio. Increasing interest of people in travel Tieups with more hotels can boost its presence Opportunities…
  • 12. Expansion of its portfolio to add flight, car and bus booking facilities Combo packages of flight plus hotel offered by various portals is a big threat Popularity of online travel portals erodes away a significant market share in India. THREATS…
  • 13. IPO FILING… 01 Trivago, Expedia’s (EXPE) German-based hotel booking site, has filed for an IPO (initial public offering) in the United States. 02 It’s seeking to list its ADRs (American Depositary Receipts) on Nasdaq under the symbol TRVG. 03 The IPO will be filed through a holding company called Travel BV. The company plans to raise ~$400.0 million, a placeholder amount that may change. 04 Trivago plans to have two classes of shares. Class A shares, currently held by Trivago’s management, includes Rolf Schroemgens, Peter Vinnemeier, and Malte Siewert. These will be available for sale to the public under the Trivago IPO. Class B shares are held by Expedia. 05 Expedia acquired a controlling stake of 61.6% in Trivago. It paid $628.0 million in cash and stock, valuing the company at ~$1.0 billion. The acquisition was in line with Expedia’s plan to expand its global presence.
  • 14. TRIVAGO’S IPO JOURNEY 2017Nov 2016July 2016201520122005 Trivago was founded in Duesseldorf, Germany, and has grown to be one of Germany’s most successful startups of the past decade. Duesseldorf remains its headquarters. Expedia bought a 61.6% stake in Trivago, paying about $628.0 million in cash and stocks. Both Trivago and Expedia agreed to put in a put/call window. This date marked the first window closure of the put/call window, which was postponed to March 2017. Expedia’s CEO Dara Khosrowshahi said the two companies would work toward filing a Trivago IPO Trivago filed for an IPO. Trivago filed for an IPO. The IPO is expected to close.
  • 15. Analyzing Trivago’s Financials: Revenue at the Cost of Ads Trivago’s revenue has risen an impressive 90.0% CAGR (compound annual growth rate) from 2010 to 2013. As Trivago’s markets mature, the growth rate will decline, as is evident from recent trends. Revenue rose 43.0% in 2015 to $324.6 million compared to $253.0 million in 2014. For the nine months ended in September 2016, revenue rose 38.0% year-over-year to $657.4 million. Revenues for the Americas and the Rest of the World are expected to rise at a faster pace than Developed Europe. That’s because they’re newer markets than Europe. As a result, brand awareness and penetration are already high in Europe, leading to moderate growth in the region. Revenue Growth
  • 17.
  • 18. EFFORTS BY- ANIRUDH YADAV - 5380 ANJALI KUMARI - 5413 ANJEET YADAV - 5377 ANKIT - 5389 ANKITA KUSUM - 5397 ANKITA SAXENA - 5415 ANKUR VERMA - 5423 ANUBHAV RAJ CHAURSIA - 5458