Tripadvisor and Ugc
Case – Trip Advisor
Summary
TA(Trip Advisor) is a travel website helping customers to get advice on hotels, restaurants, tourist destinations, etc. During this year, TA has encountered several challenges both in its business expansion and its established domains. TA monetizes its User Generated Content so need to encourage customers to write reviews. Furthermore, TA encounters challenges from competition in restaurant market and its expansion strategy in flight, vacation rental services and international market. Through discussions with data support, we recommend TA to simplify its censor process and optimize its app to beat Yelp; it is very hard for TA to replicate its success in Vacation Rental, flights and China. TA needs to create quality requirements on vacation rental, try to focus on SEM in flight search market, and pull out of Chinese market. TA is the largest travel site in the world and monetizes UGC (User Generated Content) in different ways from other UGC sites such as Yelp or YouTube.
Yelp gets their revenue mainly from local ads, brand ads and some additional revenue from deals, reservations and bookings 1. YouTube generates their revenue from ads and giving away revenue to uploaders 2. TripAdvisor generates revenue from Click-based advertising (77%), Display advertising
(13%), Subscription revenue (10%) 3.
Chart 1- reasons for customers to write reviews 4
1
Yelp:http://seekingalpha.com/article/1155551-yelp-earnings-will-highlight-revenue-growth-and-expansion-plans
YouTube: http://support.google.com/youtube/bin/answer.py?hl=en&answer=2467968
3 TripAdvisor: http://news.investors.com/technology/072412-619352-tripadvisor-second-quarter-sales-missestimates.htm?p=full
4http://community.demandforced3.com/t5/The-Demandforce-Blog/Here-s-Looking-Out-for-You-Kid-The-Unselfish-ReasonsWhy-People/ba-p/3180
2
The reasons for customers to write reviews (see chart 1) can be categorized as Intrinsic Motivation,
Herding Behavior and
Summary
TA(Trip Advisor) is a travel website helping customers to get advice on hotels, restaurants, tourist destinations, etc. During this year, TA has encountered several challenges both in its business expansion and its established domains. TA monetizes its User Generated Content so need to encourage customers to write reviews. Furthermore, TA encounters challenges from competition in restaurant market and its expansion strategy in flight, vacation rental services and international market. Through discussions with data support, we recommend TA to simplify its censor process and optimize its app to beat Yelp; it is very hard for TA to replicate its success in Vacation Rental, flights and China. TA needs to create quality requirements on vacation rental, try to focus on SEM in flight search market, and pull out of Chinese market. TA is the largest travel site in the world and monetizes UGC (User Generated Content) in different ways from other UGC sites such as Yelp or YouTube.
Yelp gets their revenue mainly from local ads, brand ads and some additional revenue from deals, reservations and bookings 1. YouTube generates their revenue from ads and giving away revenue to uploaders 2. TripAdvisor generates revenue from Click-based advertising (77%), Display advertising
(13%), Subscription revenue (10%) 3.
Chart 1- reasons for customers to write reviews 4
1
Yelp:http://seekingalpha.com/article/1155551-yelp-earnings-will-highlight-revenue-growth-and-expansion-plans
YouTube: http://support.google.com/youtube/bin/answer.py?hl=en&answer=2467968
3 TripAdvisor: http://news.investors.com/technology/072412-619352-tripadvisor-second-quarter-sales-missestimates.htm?p=full
4http://community.demandforced3.com/t5/The-Demandforce-Blog/Here-s-Looking-Out-for-You-Kid-The-Unselfish-ReasonsWhy-People/ba-p/3180
2
The reasons for customers to write reviews (see chart 1) can be categorized as Intrinsic Motivation,
Herding Behavior and