Trivago

Trivago N.V.[2] is a German technology company owned by US-based Expedia Group that specializes in travel and lodging. Its main product is the Trivago online search engine and accommodation booking website that lists prices provided by hotels and other booking websites.

Trivago is headquartered in Düsseldorf, where its international operations are managed. The company operates as a subsidiary of Expedia Group and employs staff across product development, marketing, and data analytics functions, with its platform serving users globally.

History

The company was founded in Düsseldorf, Germany, in January 2005.[3] Seeing an opportunity in the hotel search space, the founding team developed Germany's first hotel search engine. Shortly after launch, Stephan Stubner resigned as Managing Director, but the three other founders (Rolf Schrömgens, Peter Vinnemeier and Malte Siewert) remained.[4]

Initially, Trivago received €1 million from investors, including the Samwer brothers, Florian Heinemann, and Christian Vollmann.[4] In 2007, Trivago received US$1.14 million in Series B funding from the British company HOWZAT media LLP.[5] In December 2010, Trivago sold a quarter of the company for US$52.86 million to a US investment fund, Insight Venture Partners.[6]

In December 2012, Expedia, an American travel company, announced that it would acquire a stake in Trivago for $632 million.[7][4] The deal was completed in 2013.

In December 2014, Trivago acquired mobile app product and development company Rheinfabrik. After the acquisition, Rheinfabrik remains independent from Trivago in its work.[8]

In 2015, Trivago reported more than US$500 million in revenue.[9]

In March 2016, Trivago announced it had acquired a portion of Cloud-PMS company Base7booking.[10]

On December 16, 2016, Trivago became publicly traded on the American NASDAQ exchange under the ticker symbol TRVG.[11][12][13]

On November 5, 2019, CEO Rolf Schrömgens announced he will step down at the end of the year and be replaced by Chief Financial Officer Axel Hefer.[14]

Due to the COVID-19 pandemic, Trivago 2020 had to cut many jobs. In March 2020, sales had fallen by 95% compared to the previous year.[15]

Business model

Trivago also offers free and fee-based versions of its Hotel Manager product, which hoteliers use to market their facilities on the Trivago site.[16]

Products and features

Marketing

Trivago focuses on online marketing (SEM and display advertising), public relations and brand marketing (TV).[28]

Legal issues

In August 2018, the Australian Competition & Consumer Commission (ACCC) instituted proceedings in the Federal Court of Australia against Trivago alleging that the company had made misleading representations on their Australian website and in their Australian television advertising. The ACCC case started in the Federal Court of Australia in September 2019.[42]

In January 2020, the Federal Court of Australia found that Trivago engaged in Australia in conduct that was or was likely to be misleading or deceptive and that therefore contravened Australian Consumer Law. The ACCC argued Trivago promised Australian customers impartial, objective and transparent hotel price comparisons which would allow them to quickly and easily identify the cheapest offer available whereas the listing of an offer on Trivago's Australian website was subject to the payment of a fee (Cost Per Click) by advertisers and whereas Trivago did not show the cheapest offer. The ACCC claimed Trivago failed to properly disclose its operating model and used misleading "strike-through" price comparisons that compared a more expensive luxury room with a standard room.[42]

In April 2022, the Federal Court of Australia fined Trivago AUD44.7 million (plus legal costs) for misleading Australian consumers whereas the ACCC had pushed for a fine of at least AUD90 million. Justice Moshinsky of the Federal Court of Australia noted Trivago's breaches of the law were "extremely serious".[43][44]

Leadership Structure Transformation

In 2023, Trivago announced a significant transformation in its leadership structure, welcoming a team of accomplished travel industry executives, who played significant roles in the company's worldwide growth.

Trivago founder, Rolf Schrömgens, returned to the company as an advisor and joined the supervisory board. Johannes Thomas assumed the role of CEO and Managing Director, succeeding Axel Hefer, who chose not to extend his contract. Jasmine Ezz rejoined as Chief Marketing Officer and Andrej Lehnert as Chief Product Officer. [45][46]

See also

• Webjet

External links