trivago N.V.

Trivago N.V. operates online platforms that allow travelers to search for hotels. The company earns revenue by providing advertisers with referrals, which occur when a visitor to Trivago's websites or apps clicks on a hotel offer and is directed to an advertiser. Trivago primarily charges advertisers for each referral on a cost-per-click (CPC) basis. Key factors influencing referral levels include traffic volume to Trivago's platforms, the number of available accommodations, content quality (information, reviews, pictures), hotel room prices, hotel ratings, user-friendliness of the platforms, and customization of search results. Trivago's investment in advertising spend, through brand and performance marketing, also significantly impacts referral levels. Additionally, Trivago generates revenue from direct hotel booking services and business-to-business (B2B) solutions for advertisers. These B2B solutions include subscription fees for trivago Business Studio, which offers hotels advanced data analytics and tools to improve the accuracy, visibility, and performance of their listings on Trivago. The company also receives consideration from hotel service providers and affiliates based on achieving sales volume targets or gross transaction volume of affiliate services. These additional revenue streams, including those from trivago DEALS, do not constitute a significant portion of Trivago's total revenue. Revenue is monitored by tracking the number of referrals, Revenue per Referral (RPR), and Return on Advertising Spend (ROAS).