TripAdvisor Inc (TRIP) Quote - XNAS | Morningstar

Skip to Content

Is it the right time to buy or sell?

Find out with Morningstar Premium

Is it the right time to buy or sell?

Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

TripAdvisor’s Demand Improving; We Expect Further Lift Despite the Delta Variant; Shares Overvalued

Senior Equity Analyst Dan Wasiolek

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek | Aug 6, 2021

Narrow-moat TripAdvisor’s second-quarter sales rebounded to 56% of 2019 levels, ahead of our 50% estimate and up from 33% three months earlier, as improving vaccination rates expanded the travel recovery to regions like Europe. TripAdvisor’s experiences and dining segment revenue recovered to 56% of prepandemic marks in the quarter versus the 49% reported last quarter, with U.S. experience bookings ahead of 2019 levels in June. Brand hotel platform sales also increased to 62% of 2019 levels, up from 34% in the first quarter, with metasearch revenue nearly recovered in June. EBITDA progressed to $25 million in the quarter (10.6% margin), from negative $74 million last quarter, driven by the demand recovery and a streamlined cost structure.

Read Full Analysis

Company Profile

Business Description

TripAdvisor is the world’s leading travel metasearch company. The website offers 934 million reviews and information on 7.9 million accommodations, restaurants, experiences, airlines, and cruises. In 2020, 60% of revenue came from the company's hotel, media and platform segment, which includes hotel revenue generated through advertising on its metasearch platform as well as commissions received on its Instant Booking platform. Experiences and dining represented 31% of revenue with the remainder consisting of flight, rental, and nonbranded TripAdvisor sales.

Contact

400 1st Avenue
Needham, MA, 02494

T +1 781 800-5000

ir@tripadvisor.com

www.tripadvisor.com

Sector Consumer Cyclical

Industry Travel Services

Most Recent Earnings Jun 30, 2021

Fiscal Year End Dec 31, 2020

Stock Type Cyclical

Employees 2,648

Related

5 Underperforming, and Undervalued, Stocks in Q2

These stocks struggled in the second quarter but are also trading at bargain prices.

Stock Strategist Industry Reports

Online Travel Agencies' Moats Supported by COVID-19, Key Markets

Competition presents headwinds to players in the travel market, however.

Looking Past the Pandemic: Stocks That Will Benefit From Economic Recovery

A few undervalued stocks remain, but many have already surged past fair value.

These Sectors Performed Best and Worst in the Pandemic

We look at the industries for those most affected by social-distancing and stay-at-home orders.

Sachin Nagarajan

The Week Ahead: Macy's, Airbnb, and Berkshire Hathaway to Report Earnings

Nvidia and Home Depot are among several big companies on our radar for the week ahead.

Carole Hodorowicz

Stock Strategist Industry Reports

Investing in Travel in Uncertain Times

Demand has been hindered but not permanently impaired by COVID-19.

Online Travel Companies Navigate a Detour in Search Traffic

Bookings Holdings, Expedia, and TripAdvisor face a competitive threat now that Google gets top billing on its own site.

33 Undervalued Stocks for 2020

Here are our analysts' top ideas in each sector for the new year.

Susan Dziubinski

Quarter-End Insights

Consumer Cyclical: Global Uncertainty Could Benefit Travel and Leisure Investors

Online booking of experiences should continue to increase.

Stock Strategist Industry Reports

Is Online Travel Amazon's Next Stop?

TripAdvisor would be most affected; Booking and Expedia less so.

Stock Analyst Update

TripAdvisor Extending Its Market Lead in Key Verticals

The narrow-moat firm is fairly valued, and we believe investors looking for online travel exposure should look to undervalued Expedia.

Quarter-End Insights

Consumer Cyclical: Solid Economic Fundamentals Drive Discretionary Spending

Companies offering experience, specialization, and convenience continue to take share of consumers' wallets.

Stock Strategist

SEC Could Let More Small Investors Into Private Equity Fundraising

The regulator is looking at ways to allow retail investment in companies like Airbnb and Uber.

Stock Strategist

Airbnb Offers Investors a Unique Stay

A rare network advantage in a rapidly growing industry is worth a premium valuation.

Premium Article

12 Cheap Summer Stocks

Premium Exclusive: These undervalued picks hail from industries associated with the "play" that comes with the season.

Susan Dziubinski

Stock Analyst Update

TripAdvisor Is Just Getting Started

We expect improving sales and profitability to continue.

Quarter-End Insights

Consumer Cyclical: Confidence, Demographics Support Consumption Gains

E-commerce market share gains present challenges for some, but trends continue to support healthy profitability for many companies.

Stock Strategist

Expedia Poised to Take Off

We think fears regarding the company's near-term profitability are exaggerated.

10 Growth Stocks at Value Prices

We examined the 500-plus holdings in the Morningstar US Growth Index and found some stocks with good growth prospects selling at reasonable valuations.

Investing Insights: TripAdvisor, Chipotle, and Liquid Alts

We analyze earnings reports, discuss charitable donations, and look at winners and losers in this week's Investing Insights podcast.

Morningstar.com

Transparency is our policy. Learn how it impacts everything we do.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.