Hotel metasearch company Trivago has announced a strategic investment in artificial intelligence-driven hotel rate aggregator and white-label booking engine provider Holisto, marking a significant step forward in their partnership that began in 2022. This move is part of Trivago's efforts to enhance conversion rates and deliver a more seamless booking experience for users.
According to Johannes Thomas, CEO of Trivago, the investment in Holisto will allow the company to offer 'Trivago Book & Go' to all its advertising partners. “Holisto's expertise in rate optimization and dynamic pricing is exceptional, and their technology delivers real value to travelers. We are excited about their expansion and the potential to drive higher conversions for our partners,” he said.
On the same day, Trivago reported its second-quarter financial results, revealing a total revenue of €118.6 million, a 5% decline from €124.4 million in the same period last year. The company also posted a net loss of €4.9 million, compared to a net income of €5.8 million in Q2 2023. Adjusted EBITDA showed a loss of €5.4 million, down from €12.2 million last year.
“The second quarter of 2024 showed an improved year-over-year trajectory, bringing us closer to our goal of returning to top-line growth,” Trivago stated in its earnings report. The company highlighted revenue growth from branded traffic channels, which helped offset losses from performance marketing channels.
Trivago’s Q2 losses follow a net loss in the first quarter of 2024, compared to a net profit in the first quarter of 2023. The company continues to rely on its marketing spend to drive future results.
Referral revenue for the quarter was €117.2 million, a 4% decline year-over-year. The Americas saw a 5% increase in referral revenue to €47.9 million, but this was offset by a 9.7% decline in "Developed Europe" to €47 million. The "Rest of World" category saw a slight decline of less than 1% to €22.4 million.
Advertising spend increased by nearly 11% year-over-year to €95.5 million globally, while return on advertising spend dropped 16%, from €37.8 million last year to €21.7 million for the April-June period. Trivago continues to face challenges in its performance marketing channels, largely due to changes in Google's advertisement format, but expects revenue from branded traffic to bolster its results moving forward.
“We remain optimistic about achieving year-over-year top-line growth in the second half of the year by maintaining disciplined and results-oriented marketing investments,” Trivago said.
