Hotel? Trivago

Have you ever stop and wonder, when was the last time you visited a travel agency to book a vacation? Holiday planning has been rapidly evolving for the last few decades as the introduction of new technology has brought the world closer to us. Forget about travel magazines, and the pain staking task of finding hotels, comparing prices, and most important of all, “Where is the hotel’s location!”, nowadays you just have to think of a land mark you want to explore, key in the name of the city that you want to visit and you will probable figure out which suburb you should stay in with the aid of Google.

Today, Trivago has streamline this process even further and turn what use to be days and weeks of planning to something as simple as a few clicks of a button.

The Hotel Market

Hotel booking use to be a complicated, time consuming and stressful task. It remained so until website like Expedia, Orbitz, Hotels.com and Booking.com intervene and revolutionize the hotel booking process. They provide consumers a compilation of available hotels from their data base, price, images of the hotels and its facilities.

In 2005 four German students Rolf, Peter and Stephan saw the success of such websites and decide to launch their own search website and bring it a step further.

“…Google is too broadly position to really go deep in one segment like hotel search.” (Rolf Schrömgens interview, CEO of Trivago, Tech Open Air 2017)

Trivago’s Market

Trivago’s mission is to “be the traveller’s first and independent source of information for finding the ideal hotel at the lowest rate”. To achieve this, Trivago combines hotel content from various source, comparing its competitors’ rates and utilize them as part of the meta-database to provide customers a greater variety of options.

This is very sound ideal, eliminating as much work as possible for your consumer who is trap in a very complicated and confusing service industry, however Trivago as in infant company and firstly it has to make itself known to its consumer. Advertisement! Trivago’s liberal spending on television advertisement has raised its brand awareness in the past decade. Since the first televised campaign in 2009, Trivago blundered into success and since then has progressively reinvest into advertisement until the name Trivago burnt into our heads by the “Trivago guy or girl” depending on where you are.

 

Strengths

Today Trivago claims to be the largest online hotel price search and comparison website, boasting over 1.8 million hotels to choose from, 190 different countries and collaboration with over 180 online travel agencies worldwide. There are many competition websites that has functions similarly however Trivago has allocated a phenomenon advertising budget just to capture a large chunk of the market share.

 Aside from that Trivago has made quality of life improvement on their website by Integrating an overhead map function that allows you to zoom in and compare the nightly rate of the surround ting hotels, color coded user review rating for easy assessment, as well as local landmark that may be of interest if you are feeling adventurous. The most important aspect that sets Trivago different from all its competition is that Trivago focus mainly as a hotel comparison search engine, meaning it will display a list of prices for the exact same hotel and room by different booking websites to ensure that you won’t needlessly spend extra for the same product.

Weaknesses

Due to the nature of how Trivago function and operates, it does not offer its consumers reward programs that can be redeem from spending through Trivago’s services. It doesn’t mean you don’t get to earn rewards points, you will have to subscribe to the website Trivago is redirecting you towards. It is however unlikely that you will use the same online travelling agency website twice recommended by Trivago thus just forget about the rewards program altogether.

Opportunity

Trivago is also one of the few Hotel search site that provides a B2B platform which allows hoteliers market and advertise their business on Trivago. This enable independent hotels to market and make themselves known. This platform also allows hotels to monitor their performance and create packages on Trivago and as a result Trivago has more options to offer to its users.

Threats

There are many competitions out there that provides similar services such as TripAdvisor who partnered with many large famous hotel chain and Google whom that has enable customers to book accommodation through Google search, Google Maps, and Google+. The competition for market share of this sector is high even though it is not saturated.

Epilogue

Trivago has ventured into a new market and has created a new product, a service that allows consumers to compare any purchase the most affordable deals available on the market. Do not mistake them as Cost leader, they are by porter’s theory a Focused group who does one thing only and are really well at it. They have secured a major market share, capitalise on their threats and turn it into opportunities and strength. Will they continue to coexist with their competition? What is their next move?

 

Reference

Adam, L (2015) “Why is Trivago Called Trivago?”, Rewind & Capture,  Retrieved 24th March, 2018, available at: http://www.rewindandcapture.com/why-is-trivago-called-trivago/

BrandIndex (2017) “Trivago’s Ads Are Reaching Plenty of Consumers, But Not Necessarily The Right Ones”, Forbes, retrieved 22nd March 2018, available at:  https://www.forbes.com/sites/brandindex/2017/08/14/trivagos-ads-are-reaching-plenty-of-consumers-but-not-necessarily-the-right-ones/#532daad64e41

Brian, D (2017) “Trivago In Strong Position To Grow Market Share In Hotel Bookings”, Investors, retrieved 22nd March, 2018, available at: https://www.investors.com/news/technology/trivago-in-strong-position-to-grow-market-share-in-hotel-bookings/

Dennis, S (2018) “Trivago Wants to Do More Google Advertising Now That a Ban Is Lifted”, Skift, retrieved 22nd March, 2018, available at: https://skift.com/2018/03/16/trivago-wants-to-do-more-google-advertising-now-that-a-ban-is-lifted/

Firat (1995) “Marketing in a postmodern world, European Journal of Marketing 29,1, pg. 41-53, retrieved 23rd March, 2018

Iacobucci (2013) “MM4 Marketing Management”, Cengage Learning, pg. 211-219, retrieved 21st March, 2018

Johny, J (2017) “What’s the Deal with Trivago?”, Forbes, retrieved 22nd March, 2018, available at:  https://www.forbes.com/sites/johnnyjet/2017/09/22/whats-the-deal-with-trivago/#751e139e7927

Toby, C (2018) “Trivago Reveals Unprecedented Behavior Data”, HOTELDESIGNS,  retrieved 22nd March, 2018, available at: https://hoteldesigns.net/uncategorised/trivago-reveals-unprecedented-behaviour-data/

Trefis Team (2015) “Is Trivago Expedia’s Answer to Google and TripAdvisor’s Hotel Partnership Spree?”, Forbes, retrieved 22nd March, 2018, available at: https://www.forbes.com/sites/greatspeculations/2015/10/08/is-trivago-expedias-answer-to-google-and-tripadvisors-hotel-partnership-spree/#565625cd6d62

Sam, W (2017) “The Trivago woman: ’People have an opinion, but don’t know me from a bar of soap’”, The Guardian, retrieved 23rd March, 2018, available at: https://www.theguardian.com/lifeandstyle/2017/dec/19/trivago-girl-tv-adverts-gabrielle-miller-phenomenon

 

Leave a Reply

Your email address will not be published. Required fields are marked *