Majority-owned by Expedia, the Dusseldorf, Germany-headquartered company founded in 2005 recently posted first-quarter revenue declines of 73 percent compared to the same period in 2020.
Trivago CEO Axel Hefer sees a light at the end of the pandemic tunnel after strategically reducing the company’s workforce and looking for ways that travel can grow in this new environment.
“We realized very early that this wouldn’t be just a few months, but something that would last longer,” Hefer told CNBC.
Hefer added that the firm went through an overhaul in April 2020 that led to a reduction in expenses and an uptick in cash flow, per CNBC.
First-quarter results showed an operating loss of €8.9 million (about $10.76 million) from €215.3 million a year before, but it’s a 96 percent improvement.
“On the cash side, we are in a very good position,” Hefer told the news outlet.
He said that the company is now in a better position to focus its attention on strategy instead of short-term and immediate profit, Heifer said.
The digital travel platform primarily relied on its online hotel booking search tool that curates information from sites like Hotels.com and Priceline in order to offer users a comparison model.
The company is exploring a move beyond that function after teaming up with the Musement unit of TUI Group. The collaboration will offer travelers ways to book different activities on its platform.
Airbnb said on Thursday (May 13) that it foresees a strong rebound for the travel industry post-pandemic. Airbnb’s Global Head of Payments Sam Shrauger told PYMNTS’ Karen Webster that a recent economic discussion at the ConnectedEconomy forum showed that people are itching to leave home but would rather stay at someplace that’s not a typical hotel.
PYMNTS Innovation Playbook indicated that many hospitality firms lost some 70 percent of their bookings during the pandemic, while other brands like Airbnb were better suited to find other ways to stay afloat.
May 14, 2021 at 09:02PM