Tripadvisor beats 2019 revenue for first time, Viator up 138% year-over-year

Tripadvisor revenue in the third quarter of this year was $459 million, up 51% year-over-year and exceeding Q3 of 2019 by $31 million - the first quarter revenue has exceeded 2019 levels since the start of the pandemic.

Building on a trend seen in the last several quarters, Viator and TheFork saw the strongest recovery of revenue.

Since the company’s Q2 report in August – and under the leadership of new CEO Matt Goldberg – Tripadvisor now provides a breakdown of revenue and adjusted EBITDA coming from Viator and TheFork separate from what it calls “Tripadvisor Core” – comprising Tripadvisor-branded hotels, display and platform, Tripadvisor experiences and dining and other offerings such as cruises, rental, flights and cars.

A spokesperson says the more detailed reporting is “a means to drive more insights into the performance of those businesses.”

In the third quarter, Viator saw the biggest jump in revenue, growing 138% year-over-year to $174 million and up 179% compared to 2019 levels.

Total adjusted EBITDA in Q3 was $115 million – 25% of revenue – up from $72 million in the same period last year. Again Viator had the biggest jump in adjusted EBITDA – growing a whopping 1,100% from one million in Q3 2021 to 12 million in Q3 this year.

Selling and marketing costs were up 58% year-over-year in Q3 to $234 million. The company says the increase is due to “an increase in our SEM, other paid online traffic acquisition spend, and other marketing costs, the substantial majority of which was within our Tripadvisor Core and Viator segments...”

“A combination of positive factors drove strong third quarter 2022 performance, which exceeded our expectations,” says Tripadvisor CEO Matt Goldberg.

“The Tripadvisor group of brands and offerings continue to provide a trusted source of travel and experiences, delivering value to consumers hungry to connect with the world as travel recovery continues. All of our segments delivered another quarter of sequential revenue improvement, thanks to the focus and execution from our teams. We look forward to finishing out the year and setting our sights on 2023.”

In a letter to shareholders, the company says while it is too early to share specific details, “we believe that we are well positioned to capitalize on the numerous opportunities for growth in the broader travel industry...  Our brand, our reach and our community, as well as other enduring assets such as our data and content, are strengths that we intend to leverage as we set our strategic priorities.”

During a call Tuesday morning with analysts to discuss the results, in response to a question about the future of Tripadvisor Plus , Golberg says the company is "deeply exploring" direct-to-consumer offerings as part of its broader strategy work.

“We think we can certainly do better with consumer facing products and services. We haven’t yet finalized how Tripadvisor Plus would fit into that, but I think the direct to consumer offering needs to address very clear travel needs with tangible benefits that consumers value. And we need to communicate that clearly to drive a compelling opportunity,” he says.

“It can’t just be a separate proposition just about discounting, which is kind of the starting point for Tripadvisor Plus. We need to find ways to recognize and reward loyalty... Certainly it could be tiered. There ought to be a way to think about membership where it’s not just about the consumer necessarily paying for something but rather if you are a member we learn more about you and engage with you and monetize in multiple different ways.”