An increased share of branded traffic and continuous product improvements have substantially increased our conversion rates in the last quarter.

This week our first quarter results of 2024 were released. Overall, our results are in line with expectations, total revenues amounted to 101.4 million euros, a 9% decline compared to the first quarter of 2023. However, the year-over-year decline was of a lower magnitude as to what was observed in the past three quarters. We are proud that our brand retains a significant global footprint as one of the most recognized travel brands. And it is our belief that the meta-proposition continues to be relevant and of increasing importance to consumers, who remain price-sensitive due to stubborn inflation.

The headwinds and challenges from Google have become stronger, and it is difficult to predict how they will evolve their search and Ad formats. To this end, we continue to participate opportunistically in their Ad formats, but we are not willing to buy traffic at a cost of long-term oriented brand investment.

We are very pleased to report that our strategic investment into our brand at the end of last year is beginning to show positive results. We observe an increased share of branded traffic which has substantially increased our conversion rates, and therefore the quality of leads we send to our partners in the last quarter. Our CEO, Johannes Thomas, had this to say during the Earnings Conference call, “We are encouraged by the progress we’ve made in the first quarter of 2024, particularly in our brand investment and product development efforts. We remain confident in our long-term growth prospects and our ability to deliver value to our users, partners, and investors.”

Below is a summary update on our strategic focus areas as presented by Johannes during the Earnings Conference Call.

• Branded Growth. We are pleased with the results of our latest campaign, which is tracking well against our expectations. We already see branded traffic growing on the back of this investment, reaffirming our decisions and strategic direction. Our renewed brand marketing team continues to impress us with their ability to drive positive impact, as do the new TV ads being tested in preparation for our summer campaigns.

• Provide the best Hotel Search Experience. trivago is taking the next steps to assist today’s savvy travelers with finding their ideal hotels. Our new AI-powered Hotel Highlights feature has been significantly scaled during the last quarter. It is now available in seven languages, across 25 markets and expanded to over 120,000 hotels. This feature is a big differentiator for us, driving engagement and improving user search experience. These Hotel Highlights are very visible in our search results and provide users with distinct aspects to know about a hotel. We will continue to invest in this differentiating feature of our platform.

• Best Deal Discovery Experience. To provide more saving options to our users we have increased the visibility of relevant deals, making search results more price sensitive. By helping users find their ideal hotel and great deals we are creating a more memorable experience and increasing retention.

• Creating Value for our Advertising Partners. An increased share of branded traffic and continuous product improvements have substantially increased our conversion rate – and therefore the quality of leads we send to our partners. As a result, we believe that trivago’s attractiveness as a marketing channel is growing. We expect this to be appreciated by our partners over time. We have also innovated our auction model and further rolled out our second price auction test last quarter. This auction model simplifies bidding for our partners and reduces their economic risks. Based on the positive feedback and test results, we plan to introduce the second price auction in all markets before the summer.

Inflationary pressures continue to be a challenge for consumers in many regions across the globe and trivago is uniquely suited to serve their desire to travel on a budget. As disparity rises for rates across hotels, so too does the intrinsic value of price comparison.  We believe in the enduring appeal and relevance of our metasearch proposition. While competitors offer travel-search options, trivago offers a fit-for-purpose, easy-to-understand value proposition and user experience in hotel price comparison, helping travelers find great hotel deals.

Consumers remain cost-conscious, and our data shows a steady trend of travelers opting for lower-priced hotels and adjusting their booking window as a strategy to ensure they find the best deals. As we head into summer, our busiest season of the year, we are very optimistic about what lies ahead and expect our brand investments to continue their successful trajectory, growing our branded visitor base and improving monetization over the long term.

For more detailed information on our first quarter results, please visit our Investor Relations page: ir.trivago.com