TripAdvisor SWOT & PESTLE Analysis

TripAdvisor

• TripAdvisor started in 2000 is famous for the online reviews and reliable
information that they provide on travel destination, hotels, products (Minazzi 2015)
.
• TripAdvisor belongs to the travel industry with personal webpage: tripadvisor.com
founded by Stephen Kaufer.
• TripAdvisor makes easy to choose from a number of alternatives and reduce
uncertainties.
Introduction

Overview
• TripAdvsior has high engagement rate (Minazzi 2015)
• Current market position- it has a competitive advantage and has higher popularity
rate than sites like BBB for Business and Angie’s List (Banerjee and Chua 2016).
• A majority of tourists’ choices are reported to be influenced by TripAdvsior

• Headquartered in Massachusetts
• Current market position- it has a competitive advantage and has higher popularity
rate than sites like BBB for Business and Angie’s List (Banerjee, S. and Chua,
A.Y., 2016).
• Customer segment- mobile users create a solid foundation for company’s traffic
due to android phone dependency. Serves to supply-side like hotels and restaurants
as well as demand-side, travellers. It strives to boost a more filtered search result
for efficiency.

• Product- hotels, flights, vacation rentals
• Price- makes money from companies whose products gets features in the site and earns
most of its revenue and travel guides and is therefore rich in content.
• Place- dominant in China, Turkey, Russia, Spain, Poland, USA and Indonesia where
people depend on apps for travelling
• Promotion- by making the site free for access to users which has gathered strong
customer base
Marketing Mix

Promotions and advertising-TripAdvisor

TV Promotions

It caters to business professionals, solo travellers who take into consideration a
number of cues from the site before deciding on which product/service they will avail.
Consumer Taste

• It is somewhat difficult to sustain in the market with the help of reviews
• It can furthermore get affected by Google’s monopolistic search that diverts the
consumers to Google’s own products (Raguseo, Neirotti and Paolucci 2017)
Current Challenges

SWOT
• International
presence
• Demographic market
range
• Employee strength
• Security Breach
• Biased Reviews
• Online rivals
• Market competition
• Availability in
applications related to
mobile
• Technological
revolution
Strengths Weakness
ThreatsOpportunities

PESTELPESTEL
Political
Factors
Economi
c Factors
Social
Factors
Technologi
cal Factors
Environme
ntal
Factors
Legal
Factors

• TripAdvisor can suffer a blow to the business due to increasing innovation of sites
like Expedia that conduct tests and researches to know in-depth about customer
preferences (Giousmpasoglou and Marinakou 2016)
• Hotels compare has incorporated more customer-oriented information that has
helped them to fetch and retain a loyal customer base.
Future Challenges

• It should enhance customer participation and increase their contributions to the site
by letting them share personal experiences and feedback.
• Gifts and discounts as a gesture of reminding the users of their contributions to the
growth of site (Minazzi 2015)
• TripAdvsior should facilitate greater customer interaction on social media sites.
• Developing new strategies to meet the resistance they meet in fees from travellers
and owners
Recommendations

Banerjee, S. and Chua, A.Y., 2016. In search of patterns among travellers' hotel ratings in
TripAdvisor. Tourism Management, 53, pp.125-131.
Epuran, G., Ivasciuc, I.S. and Micu, A., 2015. From 4P's to 4 E's–How to Avoid the Risk of Unbalancing the
Marketing Mix in Today Hotel Businesses.
Filieri, R., Alguezaui, S. and McLeay, F., 2015. Why do travelers trust TripAdvisor? Antecedents of trust
towards consumer-generated media and its influence on recommendation adoption and word of
mouth. Tourism Management, 51, pp.174-185.
Giousmpasoglou, C. and Marinakou, E., 2016. Using Tripadvisor© for exploring cultural tourism
development in Bahrain.
Minazzi, R., 2015. Social media marketing in tourism and hospitality. Heidelberg: Springer.
Raguseo, E., Neirotti, P. and Paolucci, E., 2017. How small hotels can drive value their way in infomediation.
The case of ‘Italian hotels vs. OTAs and TripAdvisor’. Information & Management, 54(6), pp.745-756.
Scott, D.M., 2015. The new rules of marketing and PR: How to use social media, online video, mobile
applications, blogs, news releases, and viral marketing to reach buyers directly. John Wiley & Sons.
Reference List

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