Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What needs to happen for Trivago to accelerate growth into double digits from current levels, and will the brand campaign expand into new markets? A: Robin Harries, CFO, explained that Trivago is already seeing strong double-digit growth in January and plans to scale brand investments further. The company sees opportunities to expand brand marketing into new markets beyond the current 23, as well as increase spending in existing markets. Growth will be driven by brand investments and product improvements, including better retention and conversion rates.
Q: Why is Trivago expecting high single-digit growth for the year despite strong January results? A: Robin Harries noted that January's performance exceeded expectations, with strong growth across all segments and channels. However, the full-year outlook remains cautious due to easier Q1 comparisons and more challenging conditions expected later in the year. The company anticipates Q1 to be strong, with Q3 also expected to perform well due to higher investments.
Q: Will Trivago continue to prioritize growth over profitability, and what are the early results of the AI Smart Search? A: Robin Harries stated that growth is prioritized over profitability, with investments focused on brand marketing to achieve higher revenue levels. Johannes Thomas, CEO, highlighted the AI Smart Search as a new way of searching hotels, allowing users to input specific queries. While still in early stages, the feature is gradually being integrated into search suggestions, with expectations for gradual user adoption.
Q: How does Trivago's differentiated member proposition differ from traditional loyalty programs? A: Johannes Thomas explained that Trivago aims to differentiate from other search engines by offering exclusive deals to logged-in users. The focus is on providing better prices and personalized notifications, rather than a traditional loyalty program. This approach targets price-conscious travelers and encourages them to start their journey on Trivago.
Q: Can you share any metrics related to branded channel performance, such as repeat customers or organic traffic mix? A: Robin Harries mentioned that while specific KPIs are not disclosed, Trivago evaluates brand campaign success through direct response, brand awareness, and other quality measures. Conversion rates, particularly among branded users, serve as a proxy for retention, indicating positive trends in user engagement and product performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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