Tripadvisor has reported its 2020 financial results with a decline in revenue and plans to focus on Tripadvisor Plus as its key product in 2021.
In the last three months of 2020, Tripadvisor recorded monthly unique users with 68% in October, 58% in November and 59% in December compared to the same period in 2019.
In 2020, Tripadvisor saw a decrease of 61% in revenue to 604 million USD, compared to 1.6 billion USD in 2019. Loss of each in three business units of Tripadvisor including hotels, media & platform, experiences & dining, and others was roughly evenly.
The company achieved more than 200 million USD in workforce-related and discretionary fixed cost savings last year.
Ernst Teunissen, CFO Tripadvisor, said: “In 2020, we successfully navigated the most challenging period our industry and business has ever faced. Our concerted actions throughout the year – rapidly reducing our flexible cost structure, raising debt capital and renegotiating our credit facility – have ensured our strong financial position ahead of a variety of recovery scenarios.”
Although the company lost in revenue in 2020, CEO Tripadvisor, Steve Kaufer is optimistic about the business in 2021 with its new Tripadvisor Plus subscription service that is expected to develop a recurring revenue stream.
Tripadvisor Plus program offers travelers who interested in longer, more complex trips a lot of benefits, perks and exclusive experiences with only 99 USD – a “no-brainer” subscription fee.
Steve Kaufer said that the beta version of Tripadvisor Plus would be launched soon and added more discounts and perks for subscribers as it expands throughout the United States and next to other English-speaking markets.