CHANGE PROPOSAL FOR TRIPADVISOR
I. Company Background
Tripadvisor is an American online travel company founded in 2000, operating through its website
and app (Bussgang, 2012). Initial idea was to focus on official words from guidebooks and media instead
of user-generated content. Tripadvisor’s main business concept is based on trust from users as well as
travelers, and its main sources of income is advertising and hotel revenues. It operates in 48 countries with
28 different languages worldwide (Jacotine, 2016) and owns various other websites.
II. Evident Triggers to Change
1. Plummeting Stock Prices
The company lost 54% stock value in the last 4 years, $63 in February 2016 to $29 in February
2020 (NASDAQ, 2020). Executives revealed that revenue was worsening in both its core revenue streams:
core hotel booking business and its new line of bookable experiences, the focus on defining new product
segment is needed
2. Inability to Deliver Strategy
▪ Around 60% of its revenue comes from the click-based strategy on promotion from hotels.
However, the cost of generating this traffic is the same as the expense.
