How Does TripAdvisor Make Money?

TripAdvisor is an online review platform that allows users to explore destinations and even book accommodations. 

Content on TripAdvisor is user-generated, meaning that members are the ones who post pictures as well as rate a given experience or service.

TripAdvisor, which is based in Needham, Massachusetts, was founded in 2000 by Stephen Kaufer and Langley Steinert.

In the early days, TripAdvisor started out as a search engine of searchable travel information for websites such as AOL.

After not getting any clients for the first 1.5 years, they pivoted the business towards reviews – and never looked back.

Expedia ultimately acquired TripAdvisor for $210 million in 2004. Seven years later, the company went public on the Nasdaq. 

In 2021, TripAdvisor generated $902 million in revenue. But how does the firm actually make money? 

ADVERTISING

The majority of TripAdvisor’s revenue comes from click-based advertising. Partners pay a small fee for every click to their website. 

TripAdvisor offers multiple subscriptions, which give hotel owners access to features such as data on future demand or real-time review notifications. 

SUBSCRIPTIONS

SPONSORED PLACEMENTS

TripAdvisor offers partners the ability to promote their business and products via sponsored placements in the form of display ads.

Swipe up to read the full story