05-16-2018, 01:17 PM
So Kaufer, speaking at the gathering in Boston, has doubled his estimate of the company’s footprint in the sector, adding that’s he’s “extremely bullish on that attractions space.” He said that the attractions business should have take rates of 15 to 20 percent, similar to the online hotel business, but the addressable market would be only around half that of hotels. “So if you size Attractions compared to hotels, overall size might be half, but we’re the leader in that category,” Kaufer said. “So what can the margin should kind of look the same as hotels from an OTA [online travel agency] perspective.”
TripAdvisor CEO Doubles Estimate of Attractions Business to $2 Billion – Skift
Kaufer conceded that Iceland-based Bokun, which TripAdvisor bought recently, has a limited geographic scope but TripAdvisor plans to “blow it out globally.” It will take years, however, to build up Bokun’s global supply of attractions. In the interim, TripAdvisor will maintain connections with other technology integrators, too, he said.
TripAdvisor CEO Doubles Estimate of Attractions Business to $2 Billion – Skift
Along with tours and activities, Kaufer is bullish on its restaurant reservations and advertising business, as well. Kaufer said TripAdvisor has 4 million to 5 million restaurant listings on the site, and he’s challenging his team to turn that into a $1 billion business.
TripAdvisor CEO Doubles Estimate of Attractions Business to $2 Billion – Skift