Tripadvisor’s revenue in 2020 fell by 61% to $ 1 billion

The travel and tourism industry has been one of the hardest hit by the COVID-19 pandemic, and has not overlooked the world’s most visited travel and tourism site. TripAdvisor had one of the worst years when revenue fell in history. According to data provided by TradingPlatforms.com, TripAdvisor’s revenue in 2020 fell by 61%, which means a loss of almost a billion dollars a year.

Due to the constraints, global mobility has dealt a severe blow to the tourism industry
In early 2020, countries will close their borders in an attempt to mitigate the already devastating effects of COVID-19, which will undermine the strong dynamics of the tourism industry. Tripadvisor, one of the most popular travel and travel booking websites in the world, was not insured against the effects of the pandemic and suffered huge losses in 2020.

Since 2014, Tripadvisor and the tourism industry as a whole have shown an upward trend in many economic and financial indicators. This year, for the first time, Tripadvisor earned more than $ 1 billion in revenue, and this figure did not decrease until the events of 2020. Tripadvisor reported revenue of $ 604 million in 2020, nearly $ 1 billion less than revenue of $ 1.56 billion in 2019. This is 61% less than in 2019 and almost 62% below the record level of $ 1.61 billion set in 2018.

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Revenue set in 2020 is the lowest since 2010, when the company was only 10 years old.

Tripadvisor cost reduction measures – almost 40% staff reductions and cost reductions of more than 50%. In response to the pandemic, Tripadvisor has taken several cost-cutting measures. Sales and marketing costs fell to $ 316 million in 2020, the lowest level since 2012 and 53% lower than in 2019 – $ 672 million. The company also made a difficult decision to significantly reduce the number of its employees, only a year after investing in your workforce.

In 2019, Tripadvisor increased its workforce by 25%, reaching just under 4,200 employees. Then the reduction of the workforce was introduced in 2020, while the number of employees decreased by 38.1% and amounted to slightly less than 2600. The figure is the lowest since 2013 and 23% less than in 2018, a year before Tripadvisor expanded its labor force.

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Despite these cuts, Tripadvisor still suffered a significant net loss of $ 289 million in 2020.

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