Trip Advisor Case Analysis
- Submitted by: gallegosdl
- Views: 464
- Category: Other
- Date Submitted: 02/19/2014 08:57 AM
- Pages: 2
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1. List 4 key factors/reasons you believe made Tripadvisor so successful [use bullet points & very short answers if needed, don’t exceed 60 words]
* TA pioneered a method to capture unbiased reviews coupled with relevant vacation destination information.
* TA gave consumers a voice and a way to monetize their opinions creating value for both consumers and insight for the hospitality industry.
* TA’s integration into Facebook easily expanded the network and exposure to an already massive member list.
* Large and sophisticated SEM strategy.
2. How does TA manage to create balance between consumers and hotel managers/owners? [short answer not to exceed 60 words]
TA allows consumers to voice and share both their experiences and opinions other consumers. TA also offers the hospitality industry the ability to manage their listing including the ability to promote their hotels and utilize TAs ranking and reviews. Most importantly, TA allows hotel managers to address visitors’ problems and concerns giving the entire TA followers resolution.
3. How does TA make most of its money? [40 words or less]
TA generates revenue through text links. These text links navigate users to the external OTA. TA charges these OTA a predetermined rate based on a cost-per-click basis.
4. List 3 pros & 3 cons for offering vacation rentals service (similar to hotel reviews) [bullet points & very short answers if needed, not to exceed 80 words]
PROs
* Large global rental inventory.
* Vacation rental market accounted for $24.3 billion in 2009, and accounted for 20% of U.S. lodging revenue reflecting a growing industry from 2008.
* Online booking is increasing and less than half VRMCs as well as the majority of RBOs did not have online booking abilities.
CONs
* HomeAway has majority lead in fragmented market.
* Owner market hard to reach.
* Negative TA reviews could lead to unappealing desire to use TA.
* Consumer unaware of...
* TA pioneered a method to capture unbiased reviews coupled with relevant vacation destination information.
* TA gave consumers a voice and a way to monetize their opinions creating value for both consumers and insight for the hospitality industry.
* TA’s integration into Facebook easily expanded the network and exposure to an already massive member list.
* Large and sophisticated SEM strategy.
2. How does TA manage to create balance between consumers and hotel managers/owners? [short answer not to exceed 60 words]
TA allows consumers to voice and share both their experiences and opinions other consumers. TA also offers the hospitality industry the ability to manage their listing including the ability to promote their hotels and utilize TAs ranking and reviews. Most importantly, TA allows hotel managers to address visitors’ problems and concerns giving the entire TA followers resolution.
3. How does TA make most of its money? [40 words or less]
TA generates revenue through text links. These text links navigate users to the external OTA. TA charges these OTA a predetermined rate based on a cost-per-click basis.
4. List 3 pros & 3 cons for offering vacation rentals service (similar to hotel reviews) [bullet points & very short answers if needed, not to exceed 80 words]
PROs
* Large global rental inventory.
* Vacation rental market accounted for $24.3 billion in 2009, and accounted for 20% of U.S. lodging revenue reflecting a growing industry from 2008.
* Online booking is increasing and less than half VRMCs as well as the majority of RBOs did not have online booking abilities.
CONs
* HomeAway has majority lead in fragmented market.
* Owner market hard to reach.
* Negative TA reviews could lead to unappealing desire to use TA.
* Consumer unaware of...