How does TripAdvisor make money?

TripAdvisor makes money through advertising, subscription services, commissions, and listing fees. Here is a closer look at the different ways TripAdvisor makes money:

• Advertising. TripAdvisor makes money through ads using a click-based advertising model. This ad model works when users of TripAdvisor click on an ad on the company's website.

  They also receive income from travel agencies when users book travel via the platform. When a user selects to book a trip, hotel, or other option, the partnering company pays TripAdvisor a fee.

• Subscription services. The second most profitable model for TripAdvisor is its subscription services. These services are offered to various hotels, bed and breakfasts, and other lodging companies. TripAdvisor has three main subscription services in this area called:

  • Rate Spotlight

  • Market Spotlight

  • Reputation Pro

When lodging companies elect to subscribe to these services, TripAdvisor gives them the ability to:

• Do market research in the form of comparing nightly rates with other competitors, and this applies to a variety of room types and lengths of stay

• Make adjustments to their pricing and rates based on data that comes in real-time

• Make assessments and evaluations on future consumer demand using flight occupation rates and amount of reviews

• Collect real-time review information via notifications from TripAdvisor

In addition to offering hotel and lodging services subscription services, TripAdvisor also has a subscription service for its users called Plus membership. Plus membership benefits include discounts on hotels and places for lodging, as well as experiences, travel consultation, and more.