Analysis: TripAdvisor and the decline of its core hotels section revenue

October 23, 2019
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Tripadvisor is enabling travelers to review hotels, activities, restaurants and share experiences with others looking to decide what they want to do on their vacations

This user-generated content then drives more audience and further leads to an increase in travel partners on the platform. To make the travel experience better, the platform also provides online reservation, price comparison tools, and associated services. TripAdvisor earns a majority of its revenues from online advertising including both click-based and subscription-based offerings.

On Forbe's interactive dashboard on TripAdvisor’s revenues, Trefis analyzes the changes in TripAdvisor’s key revenue streams over the last two years. You can also make changes to the associated revenue drivers in the dashboard to come up with your forecast for the company. 

Based on our forecast for TripAdvisor’s revenues (shows key revenue components) of $1.65 billion in 2019, we estimate a non-GAAP EPS of $2.30. This EPS figure coupled with a forward P/E multiple of 22, works out to a price estimate of $51 for TripAdvisor stock (shows cash and valuation analysis), which is roughly 30% above the current market price.

— Forbes

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