TripAdvisor, la startup qui a failli ne jamais décoller

Initially launched in 2000 as a B2B tool without a public-facing brand, TripAdvisor experienced a challenging start. The original project, aimed at providing a search engine for travel portals, failed to gain traction, generating only $500 in revenue after 18 months. The company became profitable in March 2002 and was sold four years later for $200 million.

At its inception, TripAdvisor was not a consumer platform. Founder Steve Kaufer envisioned a system that indexed online reviews (blogs, forums, editorials) to sell as a search engine to Yahoo Travel, Expedia, or Travelocity. The "TripAdvisor" brand was a technical name, intended to facilitate demonstrations. Despite launching in October 2000, the product failed to attract interest, securing only one contract worth $500 within 18 months.

Post-September 11, the travel market stalled. Steve Kaufer offered to return remaining funds to investors, but they suggested attempting a final pivot. The team of ten shifted focus to B2C experiments, seeking a revenue-generating model due to a limited financial runway.

In December 2001, TripAdvisor tested inserting links to Expedia hotels from review pages, earning revenue per click. Expedia approved a test, yielding favorable conversion rates, resulting in TripAdvisor's first order with 20,000 paid clicks at $0.50 each. By March 2002, the startup achieved profitability.

During this period, major booking sites were not optimized for SEO. Conversely, TripAdvisor was structured like an editorial site, with regularly updated, user-generated review pages, improving its visibility in Google search results. This SEO strategy became the company's economic engine, with user referrals to booking platforms generating revenue at a minimal cost.

In 2004, media magnate Barry Diller offered $200 million for TripAdvisor, which Steve Kaufer accepted. Despite strong financials (approximately $50 million in revenue and $20 million in EBITDA), the reliance on Expedia, comprising a significant portion of revenue, and past business experiences influenced the sale decision.

Continued Success and Independent Operations

As an Expedia subsidiary, TripAdvisor maintained autonomy, experiencing robust growth. In 2011, it went public at $24, with stock prices rising to $96. The platform attracted over 400 million unique monthly visitors and remained profitable for nearly two decades.

To reduce reliance on Google, TripAdvisor attempted several transformations, including the TripAdvisor Plus subscription service, launched during the pandemic for exclusive rates. The service did not gain traction and was discontinued. In 2022, Steve Kaufer departed after 22 years at the helm.

With Google integrating reviews and booking modules, TripAdvisor's SEO advantage diminished. The rise of generative AI presents a new opportunity. As travelers increasingly use AI like ChatGPT, which aggregates information without redirecting traffic, TripAdvisor's extensive database of reviews and structured content offers a potential partnership avenue for AI-driven travel assistants. This transition, from SEO to Generative Engine Optimization, is vital for maintaining its role in digital travel.

D’après FrenchWeb.