Trivago case study

understanding trivago business model

 we discuss about trivago case study and business model.

First of all, let’s check the website of trivago.

First it’s asking us to fill the location

After location, we need to fill check in and check out.

we filled it.

Now

They are asking us about the type of room.

Here we’ve the results.

If you look carefully , there’s a bar on left side.

Where you can adjust the price.

Can change the stars

Whether you want an ac room or not

and if you open a hotel, we get all the results on it.

We can buy the most affordable hotel we like.

This is the business of trivago.

But how do they earn?

Whenever you buy something from their hotel, page is redirected

and other sites gets their commission.

Like if they gave a conversion to make my trip

then make my trip will give a commission to trivago.

This is their business model.

Which is called affiliate marketing.

Let’s talk about their history. It was created in 2005 in germany.

They’ve around 5000 employees.

and they have entered the market of america

Last year they released their IPO of around 1800 cr.

Let’s talk about some numbers.

23 sept 2016, they had registered around 13 lakh hotels

in more then 190 countries.

Let’s talk about funding.

They’ve received around 345cr. funds.

and let me tell you one thing.

This company was started in 2005 and after three years

In 2008 , they got a funding of only 7.5 cr.

You only get this much money.

Don’t think that you have the idea

You’ll become rich

If you want funding

Then it takes time. So after three years

they adapted fund of 7.5 cr and managed their business with this money for 2 years.

In 2010

They applied for venture round

and from their they got large amount of funding

Around 300 cr.

Let’s talk about some acquisition

They’ve acquired a company named tripple.

Who provided a personalised solution in hotels.

Around his domain that’s why they could expand it.

They acquired one more who provided hotel management company.

Efficient hotel management system.

Not just hotel management system.

So they acquired it first then learned everything from it and at the end sold it.

In IPO, they received around 1800 cr.

Let’s say some 350 cr more.

But how much is their revenue?

Do you know last time

Before launching the IPO, company was in loss.

After IPO, their profits were increased. HOW?

We’ll learn a new thing from this company business model.

Very important and solid thing

Last year they generated a revenue of 2600 cr.

and loss of 380cr.

And recently they generated a profit of 32 cr.

How? they launched their IPO and invested that money in company

and majority of money was spent on marketing.

so many ads.

Because their business model is very solid.

In affiliate marketing, you need to workk hard first.

It’s not related to oyo rooms.

You just know that if i want a cheap hotel

Visit trivago

That’s it.

You don’t care about the commission of trivago.

In all the ads, trivago is the marketing medium.

Trivago will help you find your ideal hotel in your budget.

This is their marketing statement.

There are not like oyo rooms that you’ll get a room at 999

Where you’ll get ac wifi

They are saying that come to our website, buy anything you want

and buy the affordable hotel

According to me , it’s a solid business plan

and very profitable too.

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I apologize for any error ,I tried my best to write this .

be curious

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