Revenue Streams
Click-Based Advertising, Subscription and Others, Display-Based Advertising
- Click-based advertising. The company allows the customers to book the hotels in two manners: by redirecting them to the client’s website or by allowing them to book the room using Booking.com website for different hotels. This meta-search business model (consolidated data from various suppliers of tourism services) allows the customers to click on the link which will directly connect them to the website of the hotel. Each click by the customer generates a certain amount of revenue for the company. This is decided using the auction or bidding system. When a partner agrees to click-per-click model he agrees to pay the amount of that bid each time the user clicks on the URL link of the partner’s website. The size of the bid determines the position of the partner’s advertising and text on the company's website. Similarly each of the booking through booking.com provides a certain amount of revenue. In total, this click-based system is responsible for around 73% of the revenue. Figure 2 The chart shows three segments from which TripAdvisor gains its revenue. The
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The company set up an affiliate revenue scheme similar to the affiliate model followed by the Amazon. The company developed a model which allows the affiliate to display the TripAdvisor’s toolbar, widget, search bar and others. It also allows the users to pocket the 50% of the revenue earned by the TripAdvisor. The idea behind this is that such a system will enhance the traffic to the company. Furthermore, the company also gets revenue from 24 other media brands which have been acquired by TripAdvisor since its inception (see the section Brief History, p. 5). These brands can be listed as Tingo, Travelpod, IndependentTraveler, JetSetter, Cruise Critic, etc. These brands add to the revenue earned by the