TripAdvisor 2015 Annual Report Download - page 9

 networks;organicsearchthroughsearchengineoptimization,orSEO;paidsearchthroughsearchenginemarketing,orSEM;andreferralsfrom
partnerswhosesitescontainlinkstoTripAdvisorcontent,badgesorwidgets.Atapproximately18%ofglobalonlinetraveluniquevisitors,
accordingtocomScoreMediaMetrix,webelievethatwehaveanopportunitytocontinuegrowinguniquevisitorstoourwebsites.Inorderto
achievethisobjective,weintendtoinvestintheaforementionedchannels,aswellasanynewchannelsthatwemayidentifyinthefuture.
·Allowing Hotel Shoppers to Book Directly on Our Websites. Webelievethatallowinguserstobookdirectlyonlinewithoutleavingour
TripAdvisor-brandedwebsiteswillresultinabetteruserexperienceaswellas,ultimately,additionalrevenuetotheCompany.Instantbookingisa
featurethatenablesuserstomakeahotelreservationdirectlywithahotelorOTApartnerwhileremainingontheTripAdvisorwebsite.Wehave
beengraduallyrollingthisfeatureoutintheU.S.sinceJune2014andin2015,acceleratedtherolloutofinstantbookingforhotelsacrossourU.S.
andU.K.platformstoallusersonalldevices.Wealsoplantocontinuerollingoutthisfeaturetoadditionalinternationalmarketsin2016.Our
businesssuccessdependsinlargepartonourabilitytomaintainandexpandrelationshipswithourpartnersinthetravelindustry.Thesepartners
powertheinstantbookingfeatureonourwebsiteand,webelieve,alsobenefitfromthisfeature,throughincreasedreservationsandmoredirect
relationshipswithtravelers.
·Enhancing Our Mobile Offerings . WebelieveinvestinginandrapidlyinnovatingandimprovingtheTripAdvisoruserexperienceonmobile
devicesisnecessarytomaintainandgrowourbusiness.Wecreatenew,user-friendlyanddifferentiatedmobileofferingsanddevelopwaysto
efficientlyandeffectivelyadvertiseanddistributeontheseplatforms.Wehaveinvestedindevelopingandimprovingournativeapplicationsand
havemadesignificantprogresscreatingmobileofferingswhichhavereceivedstronguserfeedbackandhavebeendownloaded290milliontimes.
Weseeanopportunitytoincreasemonetizationofmobiledevices,especiallyasweincreasethepercentageofrevenuethatcomesfromtransaction-
basedproducts.
·Enhancing International Offerings .Wearefocusedonstrengtheningourbroadglobalfootprintaswebelievethatpenetratinginternational
marketsrepresentsalong-termopportunityforus.WecontinuetoimprovelocalizationandgrowouruserbaseinEurope,AsiaandSouthAmerica,
especiallyinemergingmarkets,suchasBrazil,RussiaandChina.Inaddition,wecurrentlyhavealeadproductofferingintheChinesemarket—re-
brandedMaoTuYing(orTripAdvisorChina)—headquarteredinBeijing.WecontinuetoinvestintheChinesemarket,despiteoperatingataloss,
andwillcontinuetoenhanceourproductofferingstointernationaltravelers.
·Expansion into Adjacent Categories .Weintendtocontinuetogrowourbusinessandexpandourproductandserviceofferingsthateither
complementourexistingcorehotelsegmentorprovideadditionalresources,productsand/orservicesthatwillimprovetheuserexperienceforhotel
shoppers.Inaddition,wecontinuetomakeinvestments,inadjacentcategoriesinordertoleverageandmonetizethesignificantpercentageofour
userswhoarenothotelshoppers,orwhovisitTripAdvisorsiteswithoutnavigatingtopagesthatcontainalistingofhotelsinacityoraspecific
hotel’spage.TworecentexamplesincludeouracquisitionsofLafourchetteorthefork.com,theleadingonlineandmobilereservationplatformfor
restaurantsinFrance,SpainandSwitzerland,withanetworkofrestaurantpartnersinEuropeandAustralia;andViator,theleadingonlineresource
forresearchingandbookingdestinationactivitiesaroundtheworld.
Our Commercial Relationships
Wehaveanumberofcommercialrelationshipsthatareimportanttothesuccessofourbusiness.Althoughtheserelationshipsarememorializedinsome
formofagreement,manyoftheseagreementsareforalimitedtermorareterminableatwilloronshortnotice.Asaresult,weworkhardtoensurethemutual
successoftheserelationships.
WehaveadvertisingrelationshipswiththevastmajorityoftheleadingOTAsaswellasavarietyofothertravelsupplierspursuanttowhichthese
companiespurchasetravelerleadsfromus,generallyonaCPCbasis.FortheyearendedDecember31,2015,ourtwomostsignificantadvertisingpartners,
ExpediaandPriceline(andtheirsubsidiaries),eachaccountedformorethan10%ofourtotalrevenueandcombinedaccountedfor46%ofourtotalrevenue.
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Ourinstantbookingfeatureenableshotelshopperstobookdirectlywithathird-partypartner,withoutleavingourwebsite.Tofacilitatethis,wehave
partneredwithsevenofthetoptenmajorhotelchains,includingAccor,BestWesternInternational,CarlsonRezidor,ChoiceHotels,HyattHotels,Marriott
InternationalandWyndhamWorldwide.WealsopartneredwithPriceline,wherebysomeofPriceline'sonlinetravelbrandswillparticipateinourinstantbooking
platform,beginningwithitsBooking.combrand.Asaresult,usersareabletobookmorethan450,000hotels,poweredbyourpartners,withoutleavingthe
TripAdvisorsiteormobileexperience.
Wehaveacontentlicensingprogramutilizedbyover1,300partnersaroundtheworld,includinghotelchains,onlinetravelagents,touristboards,airlines
andmediasites.TripAdvisoralsodistributesitscontentthroughself-serviceHTMLwidgets,whichareusedonthewebsitesofhotels,restaurants,attractionsand
destinationmarketingorganizations.Theseproducts,whichareavailableat
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