Viator, a subsidiary of Tripadvisor, outperformed its parent company in quarterly revenue for the first time, recording $270 million, a 10% increase from the previous year, and comprising 51% of Tripadvisor’s total $532 million revenue.
Tripadvisor‘s subsidiary, Viator, has achieved a significant milestone by surpassing its parent company in quarterly revenue, as revealed in the latest financial results for the three months ending September 30. Viator, known for its extensive array of bookable experiences, generated $270 million in revenue, marking a 10% increase from the previous year and constituting 51% of Tripadvisor’s total revenue of $532 million.
The growth in Viator’s revenue was accompanied by a 9% rise in the gross booking value of experiences, reaching nearly $1.1 billion. Additionally, Viator’s adjusted EBITDA stood at $30 million, representing 11% of its revenue, an improvement from 7% in the same quarter last year.
Tripadvisor CEO Matt Goldberg highlighted the strategic importance of Viator during a call with analysts, stating, “Our ambition is to extend our leadership position in this large and expanding market with our scaled global platform and attractive financial profile.” Goldberg emphasized the significant potential within the travel experiences sector, driven by low online penetration and increasing consumer recognition of experiences as a crucial component of travel.
The experiences segment under Viator includes contributions from both Viator and Tripadvisor’s B2C points of sale, as well as B2B offerings for operators and third-party distributors. Viator now boasts over 350,000 bookable experiences, with more than 55,000 operators and over 4,000 demand partners.
Mike Noonan, Tripadvisor’s CFO, noted the dual advantages within its experiences business, citing the broad reach of the Tripadvisor brand and Viator’s targeted approach to high-intent travelers as key growth drivers.
Looking to the future, Goldberg expressed optimism about expanding Viator’s market presence through new source markets, additional categories of supply, and geographic expansion via partnerships and new B2B sellers. He conveyed strong enthusiasm for the prospects of 2025, indicating robust growth strategies in place.
Meanwhile, Tripadvisor’s own brand revenue for the quarter was reported at $255 million, a decrease of 12% year-over-year, representing just under 48% of the total company revenue. Despite the decline, brand Tripadvisor’s adjusted EBITDA was $87 million or 34% of its revenue, surpassing expectations. The company is actively transforming its business model, moving away from its traditional reliance on hotel meta offerings, and enhancing its travel planning, engagement through its mobile app, and booking conversion capabilities.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
