- What is Trivago, and how does Trivago work?
- How does Trivago make money?
- Referral Revenue (from Online Travel Agencies)
- B2B Solutions
- Trivago’s Subsidiaries, Acquisitions, and Exits
- Trivago’s profit and revenue
- What is the Trivago business and revenue model?
- Trivago’s funding and market cap
How does Trivago make money if it’s free to use? Here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Trivago business model, their year over year revenue, and how Trivago works.
What is Trivago, and how does Trivago work?
Trivago N.V., styled as trivago, is a global search platform that allows users to easily find, compare, and book hotels, cars, flights, and more.
Founded in 2005 by Rolf Schrömgens, Stephan Stubner, Peter Vinnemeier, and Malte Siewert, Trivago began trading on the NASDAQ on December 16, 2016, under the ticker symbol “TRVG”.
Since that time, Trivago has grown to over 2 billion website visits per year helping more than 120 million travelers each month book and accommodate travel through its platform.
How Trivago works is: To use Trivago, users can simply visit their website or download the mobile app on Apple Store or Google Play.
Once there, users can simply begin a search by entering in where they’d like to travel to, the dates, and the number of guests. From there they can compare and book accommodations.
How does Trivago make money?
According to Trivago’s Business Studio page, Trivago has over 2 billion website visits per year as well as more than 500,000 registered properties on its platform.
So how does Trivago make money off of all these users?
Below is a breakdown of how much money Trivago makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 2 ways of how Trivago makes money (in 2022):
Trivago has a revenue model that makes money in two (2) ways; referral revenue from online travel agencies and B2B solutions.
#1. Referral Revenue (from Online Travel Agencies)
Trivago makes the majority of its money from referral revenue. In fact, $368.7 million USD, or 96.7% of Trivago’s total revenue came from referrals in 2021.
How does Trivago make money from referrals? Trivago makes money from a referral every time a Trivago user clicks on a hotel offer or advertisement in the Trivago search results and goes on to complete the booking on the advertisers’ website.
Trivago had a total of 282.2 million qualified referrals through its platform in 2021, according to pages 47 and 48 of Trivago’s 2021 Form 10-K. Of which, Trivago received money for each of those referrals. Which adds up to a “revenue per qualified referral (RPQR)” of $1.31 USD per referral.
Note: 96.7% of Trivago’s total revenue came from referral revenue in 2021.
#2. B2B Solutions
Trivago makes the remaining portion of its money from the B2B solutions it offers its advertisers. Which, collectively, generated an additional $12.65 million of revenue for Trivago in 2021.
These B2B solutions include things such as display advertisements, white label services, and subscription fees made from advertisers using the Trivago Business Studio PRO Package.
Note: Trivago Business Studio has 500,000 properties registered on its platform.
Trivago’s Subsidiaries, Acquisitions, and Exits
Aside from trivago being acquired by Expedia for $632 million, trivago has also had its own fair share of acquisitions.
To date, trivago N.V. has made a total of 5 acquisitions, 2 investments, 1 lead investment, and 1 successful exit.
Trivago’s profit and revenue
In 2021, Trivago reported $381.4 million USD in revenue.
Note: Because trivago N.V. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Trivago’s publicly released financial reports, including annual reports, through Trivago’s investor section on their website.
What is the Trivago business and revenue model?
Trivago makes money through a few revenue models that they combine within their company, they are:
- Affiliate business model
- Advertising based business model
- Subscription based business model
- Fee for service (FFS) business model
- B2B2C (partnerships) business model
- Mergers & acquisitions (M&A) business model
Trivago’s funding and market cap
According to Trivago’s Crunchbase profile, Trivago has raised $55 million over 3 rounds and has a market cap of $629.4 million as of May 2022.