Trivago

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trivago N.V.
Public company
Traded as NASDAQTRVG
Industry Travel, Hotel, Information technology, Marketing
Founded January 2005; 12 years ago (2005-01) in Düsseldorf, Germany
Founders Rolf Schrömgens
Malte Siewert
Peter Vinnemeier
Headquarters Düsseldorf, Germany
Areas served
55 countries worldwide
Key people
Rolf Schrömgens
Malte Siewert
Peter Vinnemeier
Andrej Lehnert
Johannes Thomas
Axel Hefer
Products Metasearch for hotel prices
trivago Hotel Manager
Owner Expedia, Inc.
Subsidiaries Base7booking
Rheinfabrik
Website trivago.com

trivago N.V., often referred to as 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,[1] and is one of the fastest growing companies in Germany,[2] with profitability doubling since 2008.[3] Expedia, Inc. owns a majority of the company's stock.

History[edit]

The company was founded in Düsseldorf, Germany in January 2005. Seeing an opportunity in the hotel search space, the founding team developed Germany’s first hotel search engine. Shortly after launch, Stubner resigned as Managing Director, but the three other founders remain.[4]

Initially, trivago received €1 million from investors, including the Samwer brothers, Florian Heinemann and Christian Vollmann. [4] In 2008, trivago received $1.14 million in Series B funding from the British company HOWZAT media LLP. [5] In December 2010, trivago sold a quarter of the company for $52.86M to a US investment fund, Insight Venture Partners.[6]

In December 2012, Expedia, an American travel company, announced that it would acquire a 61.6% stake in trivago for US$632 million.[7][4] The deal was completed in 2013.

In December 2014, trivago acquired mobile app product and development company Rheinfabrik. After the acquisition, Rheinfabrik remains independent from trivago in its work.[8]

In 2015, Andrej Lehnert[9] and Johannes Thomas (Hotel Sales, Business) joined trivago's Managing Director team.[10] In 2015, trivago reported more than $500 million in revenue,[11] and said its revenue had doubled every year from 2008 to 2015. [3]

In March 2016, trivago announced it had acquired 52.3% of Cloud-PMS company Base7booking, after taking majority control of the Switzerland-based company in the third quarter of 2015. trivago integrated Base7booking's property management system, which enables small and independent hoteliers to manage daily operations, run reports, send invoices and manage digital and email marketing.[12]

In April 2016, trivago reached 1000 employees and began building a new campus in Düsseldorf.[13]

On December, 16, 2016, trivago became publicly traded on the NASDAQ exchange under the ticker symbol TRVG.[14][15] Expedia retains 64.7% of voting rights and 59.7% of economic rights.[16]

Operations[edit]

trivago is headquartered in Düsseldorf, where the international operations are conducted and 90% of the company’s employees work.[4] In 2014, trivago opened new offices in Leipzig and Palma de Mallorca. [4]

Business model[edit]

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.[4][17]

trivago also offers free and fee-based versions[10] of its Hotel Manager product, which allows hoteliers to manage their online presence and visibility on the trivago site.[18] 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 and 14 million photos, and reports over 120 million visitors per month. 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. They also offer rates through many sites reselling for travel wholesalers, where rooms may or may not be available at time of booking. No effort is made to ensure the credibility of these sites.[citation needed]

Products and features[edit]

Hotel search[edit]

trivago's hotel search engine was the first of its kind in Germany[1] and has websites in 50+ countries.[4] 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 and 14 million photos, and reports over 120 million visitors per month.[11]

trivago's search tool scans hotel booking sites for prices, availability, images and reviews within seconds.[19] When users choose a hotel, they are redirected to a partner website to complete the booking.[20]

trivago app[edit]

trivago offers a free app for its Hotel Search product on both iOS and Android.[21] In addition to the hotel search feature, the app provides interactive maps and displays accommodations in close proximity to the user's current location.[22]

The trivago App has been listed in Mashable's 25 Apps to save you money,[21] USA Today's 10 best apps for booking your stay,[23] the Independent in Ireland as an app to save you time and money[24] and Australia's News.com.au as one of the top apps to take on holiday.[25]

trivago Hotel Manager[edit]

Hotel Manager is trivago’s B2B platform that allows hoteliers to manage their presence on the trivago site. The platform gives hotels and chains customer data to attempt to secure more bookings and increase business.[26] Hoteliers can monitor their performance, for example seeing the amount of profile views, clicks and bookings they receive.

Hotel Manager Pro[edit]

Hotel Manager Pro is the fee-based version of trivago's Hotel Manager platform. The Pro version enables hoteliers to update and customize their own listings, as well as access analytics about competitor rates. trivago states that up-to-date listings, including images and amenity information, help properties increase their rankings on the site.[10]

Rate Connect[edit]

Rate Connect is a feature that allows individual hotels to update their current rates and availability directly via the trivago Hotel Manager tool.[27]

Indexes and rankings[edit]

trivago Rating Index (TRI)[edit]

The TRI aggregates all ratings for destinations listed on trivago and ranks them between 0 and 100.[28] The index includes criteria such as location, price, food, internet, room and facilities,[29] and is used to create annual trivago rankings and awards such as the Reputation Ranking,[30] Island Ranking,[31] Ski Ranking,[32] the Top Hotel Awards,[33] and the Best Value Destinations (based on an algorithm combining the tRI with price).[34]

trivago Hotel Price Index (tHPI)[edit]

The tHPI displays the average overnight accommodation prices for the most popular cities worldwide. Prices are based on the cost of a standard double room, taken from over 2 million daily price inquiries over the past month.[11]

Travel Advice Calendars[edit]

trivago's Travel Advice Calendars show the most affordable and most expensive months to visit top destinations. The calendars feature 45 cities across six continenPI to provide average monthly hotel prices.[35]

Marketing[edit]

trivago focuses on online marketing (SEM and display advertising), public relations and brand marketing (TV).[36] The company has historically entered new countries using predominantly television advertising.[37]

When Facebook expanded its Dynamic Ads product to cover travel brands, trivago was one of its two initial launch participants.[38]

The "trivago Guy"[edit]

When the company aired its first U.S. TV advertisement in 2012, the ad’s spokesman inspired a trending Twitter hashtag, #trivagoguy, based on his unusual look.[39] According to Rolling Stone, trivago “wanted someone real, approachable and genuine” when it chose actor Tim Williams to star in the ad. The trivago guy became an unexpected celebrity, with some people noting his unbuttoned shirt and creepy vibe, while others found his scruffy appearance and deep voice "inexplicably sexy.”[40]

trivago responded to the comments by launching a contest that invited people to give trivago Guy a makeover.[41] The trivago Guy inspired parodies, fan fiction and a large gay following.[42] Many commenters asked why trivago chose not to have the actor wear a belt. According to the actor, that was an accident. "Unfortunately none of the belts fit the belt loops that I had on," Williams said. "I think that was probably the best break we could have gotten."[39] Following the large response for the U.S. trivago Guy, the company decided to create French and Spanish trivago Guys.[39]

Work environment[edit]

trivago states that it attempts to recruit tech and business employees that are "willing to cross borders".[1] trivago's first employees were hired via Skype interview from Spain, Italy and Canada, and today 90 percent of its staff is recruited internationally.[4]

The company operates with virtually no hierarchies or titles,[1] instead using a model called swarm intelligence. It also does not have fixed working hours, and offers employees a four-day surprise holiday each year and one month working in Mallorca.[43] trivago states that it receives around 50,000 applicants per year.[1]

Employees[edit]

The average age of a trivago employee is 28 years old [1] and it has 63 nationalities working out of its main office. The office space has flags lining the desks representing where each employee originates from.[44]

New campus[edit]

On February 2, 2016, trivago announced its plans to build a global campus in Düsseldorf, designed to accommodate over 2000 people and be ready by 2018.[11] The six-story building is being designed by SOP Architekten in Düsseldorf. The new campus will be built on the docks of Kesselstraße in the Düsseldorf Media Harbour, close to the famous Neuer Zollhof buildings designed by Frank Gehry. The campus will be accessible by public transportation as well as by bike.[11]

Lawsuits[edit]

In August 2016, Buckeye Tree Lodge and Sequoia Village Inn, LLC filed a class-action lawsuit in California, accusing the company and its partners of "brazen deceit" by coordinating with internet search engines and social media institutions to return false results on lodging entities in favor of those affiliated with their websites, in violation of the Lanham Act. The case is pending.[45][46]

References[edit]

  1. ^ a b c d e f Lead Digital "Arbeiten bei trivago: Keine Hierarchien und 15 Biersorten gratis"
  2. ^ Grunderszene Ranking
  3. ^ a b Expedia Inc "Expedia Announces Agreement To Acquire Majority Of trivago"
  4. ^ a b c d e f g h Grunderszene "trivago, auf leisen Sohlen"
  5. ^ Stellant Partners "HOWZAT media invests in trivago, the German-based travel website focused on hotels, reviews & community"
  6. ^ Grunderszene "Insight steigt zu 160-Millionen-Bewertung bei trivago ein"
  7. ^ "Expedia to acquire stake in German hotel site". Reuters. 2016-12-21. Retrieved 2017-02-21. 
  8. ^ RP Online "Mit 29 Jahren den "Exit" geschafft"
  9. ^ Anrej Lehnert Linkedin
  10. ^ a b c Skift "Interview: trivago Building Big Team in Shift Toward Direct-Hotel Relationships"
  11. ^ a b c d e Hospitality Net "trivago Unveils Plans for New Global Campus"
  12. ^ Skift "trivago Acquisition of Hotel-Tech Startup Highlights Evolution of Booking Sites"
  13. ^ Grunderszene "Mit Altbier zu neuen Startup-Visionen"
  14. ^ "Expedia's Hotel Search Service trivago Plans IPO". Fortune. Retrieved 2017-02-21. 
  15. ^ Roof, Katie. "trivago closes up 8% in public debut". TechCrunch. Retrieved 2017-02-21. 
  16. ^ "trivago - Expedia, Inc.". Expedia, Inc. Retrieved 2017-02-21. 
  17. ^ Quora "How much does trivago charge hotels per provision"
  18. ^ Hotel Marketing "trivago helps hotels manage online presence"
  19. ^ Hotel Insight "Worried about how to optimse your hotel on OTA websites? trivago offer a helping hand"
  20. ^ Pulsoturistico "trivago desembarca en Argentina"
  21. ^ a b Mashable "25 Apps to Save You Money"
  22. ^ CNET "trivago - The Hotel Search for Android"
  23. ^ USA Today "HomeExchange.com Wins Best App/Website for Booking Your Stay!"
  24. ^ Independent "Save time and money when booking your holiday with these handy apps"
  25. ^ News.com.au "The 10 top apps to take on holiday"
  26. ^ Mercado Continuo "trivago inaugura oficinas en España"
  27. ^ AHGZ "trivago startet Direct Connect für Hotels"
  28. ^ Edmonton Journal "Edmonton hotels fail to make online list of country's best"
  29. ^ Imneuquen "La Angostura y San Martín se destacan por su hotelería"
  30. ^ Hotel News Resource "trivago releases global hotel reputation ranking 2015"
  31. ^ Travel Daily News "European Islands trivago Reputation Ranking 2016"
  32. ^ Torno News "6 Greek destinations among best winter skiing resorts in the world"
  33. ^ Bath Echo "Seven Bath hotels listed in trivago's inaugural Top Hotel Awards"
  34. ^ Huffington Post "The 25 Best Value Cities in the World"
  35. ^ Hospitality Net "trivago launches new Travel Advice Calendars"
  36. ^ Revista Tourismo & Tehnologia "trivago es uno de los comparadores de precios de hoteles más grandes del mundo - Entrevista"
  37. ^ Travel Trends "trivago Boosts Australian, NZ, US and Canadian Spend"
  38. ^ Skift "Marriott and trivago Sign on to New Ad Product for Facebook and Instagram"
  39. ^ a b c ABC News "The trivago Guy As You've Never Seen Him Before"
  40. ^ Rolling Stone "What's the Deal With the trivago Guy? Meet TV's Sloppy, Sexy Pitchman"
  41. ^ The Globe and Mail "trivago spokesman to undergo ‘celebrity’ makeover"
  42. ^ Elle "You're Not the Only One With a Crush on trivago Guy"
  43. ^ Handelsblatt "Feiern für die Firma"
  44. ^ Business On "trivago baut neues hauptquarter entsteht im medienhafen"
  45. ^ "Buckeye Tree Lodge files lawsuit against Expedia", John Elliot. The Kaweah Commonwealth. September 9, 2016. Retrieved 25 jan 2017
  46. ^ "Buckeye Tree Lodge and Sequoia Village Inn, LLC v. Expedia, Inc. et al", Justia Dockets. August 17, 2016. Retrieved 25 jan 2017

External links[edit]