Tripadvisor is realigning the company, prioritizing in-destination experiences (tour and activity bookings) over its legacy business of traveler hotel reviews and click-through revenue.
Experiences have outperformed Tripadvisor's legacy business in recent years, and a new company structure will reflect that. Tripadvisor will unify Viator (Tripadvisor's platform for tour/activity bookings) and its legacy business under one team.
With the shift, Tripadvisor expects to reduce its workforce by 20% and anticipates that the job cuts and operational efficiencies will result in $85 million in annualized gross cost savings, fully realized in 2027.
Viator and TheFork, Tripadvisor's restaurant reservations service, account for about 60% of Tripadvisor's total revenue in the last year, up from about 40% three years ago, said CEO Matt Goldberg.
Besides prioritizing Viator, Tripadvisor envisions leveraging its data and content for future AI products and a more personalized experience for customers. The company is experimenting with AI and how travelers use the technology, identifying opportunities for AI to assist users in travel planning and during their trip for decisions about activities, sightseeing and where to eat.
The company also plans to simplify its legacy offerings, but the hotel reviews -- which draw millions of monthly web visitors -- will remain.
Tripadvisor's revenue in the third quarter was $553 million, a 4% increase. Net income was $53 million, up 38%.