Is TripAdvisor becoming a big threat To OTAs?
Instant Booking is experiencing slow adoption by hotels and it will be many years before it can begin to become a threat to the leading OTAs.
Leading online travel agencies (OTAs) Priceline (NASDAQ:PCLN) and Expedia (NASDAQ:EXPE) have refused to make TripAdvisor's (NASDAQ:TRIP) hotel inventory available for in-app booking through TripAdvisor's Instant Booking feature. Never mind the fact that both OTAs get a lot of their traffic from TripAdvisor. What does the move mean for TripAdvisor and the two OTAs?
The relationship between TripAdvisor and the two OTAs is largely symbiotic. TripAdvisor is the largest travel review site and has managed to accumulate a staggering 200 million reviews on more than 4 million hotels and other resorts on its site. To underscore the massive popularity of the site, consider that more than 1.25 billion people visited the site to read reviews on their favorite hotels during the first half of 2014. TripAdvisor is reputed to control a market share north of 60%, dwarfing the operations of competitors Zoover, VibeAgent, Google Places and TravelPost.