For nearly two decades, TripAdvisor was one of the most influential websites in the global tourism industry. Customer reviews, hotel reputations, price comparisons: a large part of the research process passed through the platform. But today, its model seems fragile. Between the growing dominance of online travel agencies (OTAs) and the emergence of artificial intelligence in travel research, some analysts are predicting a profound transformation of tourism distribution. So, should we really be worried about TripAdvisor?
According to the specialized press, the platform is mainly going through a phase of adaptation to a market that has profoundly changed since the 2010s. Inspiration and discovery remain important in the customer journey, but the economic value of the sector has gradually shifted towards the players who control the transaction.
Summary
A loss of influence in tourism distribution
In an analysis relayed by the media outlet Hospitality On, Ashkhen Gebondyan, former market manager at Booking.com, believes that TripAdvisor is going through a structural crisis linked to the evolution of the tourism distribution market.
According to this industry observer, the platform has lost a significant portion of its market value over the past decade. This trend, she argues, illustrates the shift in economic power within the travel ecosystem.
“I spent several years at Booking.com observing how power really works in travel. And TripAdvisor is probably the clearest example of a company that didn’t understand the nature of its true asset. Hotels used Booking to get bookings. They used TripAdvisor to build their reputation,” explains Ashkhen Gebondyan.
The heart of the debate lies in the economic model chosen by the platform. By primarily monetizing its traffic through cost-per-click, TripAdvisor has allegedly allowed online travel agencies to capture the main value of the market: the booking.
According to the specialized press, this trend is also reflected in the economic performance of the various players in the sector. Over the same period, Booking Holdings significantly expanded its business, while TripAdvisor primarily diversified its revenue streams through subsidiaries such as Viator and The Fork.
Artificial intelligence is changing the traveler's journey
The emergence of artificial intelligence adds a new dimension to this transformation of the sector. More and more travelers are now starting their search for a destination or hotel via conversational interfaces rather than traditional search engines.
In this new context, economic value is no longer solely in generating traffic but in the ability to influence the final decision of the traveler.
Players who can master inspiration, recommendation, and transaction have a strategic advantage. For now, booking platforms like Booking and Expedia remain dominant in the transactional aspect.
Artificial intelligence could, however, gradually alter this balance. If conversational tools eventually integrate booking or payment functions, they could become a new entry point into tourism distribution.
A gradual redistribution of the value chain
To understand this evolution, we need to look at the typical journey of a traveler today. A user can ask artificial intelligence for recommendations for a stay in Rome, receive a selection of hotels or activities, and then click through to a booking platform to finalize the purchase.
In this scenario, travel discovery takes place outside of traditional review platforms like TripAdvisor. It is this gradual shift in the entry point of the customer journey that fuels questions about the future of the model.
In my view, the issue goes far beyond the case of TripAdvisor. What this debate reveals is a profound transformation of the customer journey in tourism. Inspiration, planning, and booking are no longer necessarily done on the same platforms.
In this new environment, those players capable of accompanying the traveler from the beginning to the end of their journey have a considerable strategic advantage.
A platform that is still widely used
Despite these concerns, TripAdvisor remains one of the most visited websites in the world for travel reviews. Millions of travelers continue to use the platform to compare hotels, restaurants, and activities.
The group's diversification strategy, particularly with the activities and experiences offered via Viator, also shows that the company is seeking to adapt to market transformations.
For tourism professionals, the question is therefore not whether TripAdvisor will disappear, but rather how tourism distribution will continue to evolve in the years to come.
In short
- TripAdvisor remains a major platform for tourist reviews.
- Market value has shifted towards the players who control the booking.
- Online travel agencies (OTAs) now dominate tourism transactions.
- Artificial intelligence could become a new entry point for travel.
- The tourism distribution sector is undergoing a structural transformation.
Sources
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