Travel IPO

Trivago Eases onto Nasdaq

  • Why it matters

    Why it matters

    Travel search sites such as Trivago and tripadvisor are currently experiencing a downturn in users, making investors nervous.

  • Facts

    Facts

    • Since 2013, over 60 percent of Trivago has been owned by the larger U.S. travel portal Expedia.
    • Part of Trivago’s success is based on major expenditure on marketing. In 2016, the start-up spent around €500 million on marketing even though they only have revenues of €585 million.
    • On Friday, Reuters reported that Trivago’s IPO was priced well below expectations, at around US$11 per share.
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    Audio

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TUI
Holiday makers on the beach on the Spanish island, Mallorca. Trivago staff get to work there a month at a time. Source: DPA

Five chartered planes took off from Düsseldorf in mid-October, headed for Ibiza. On board: Around a thousand Trivago employees. For three days and nights, they celebrated on the sunny island at the Hard Rock Hotel. The schedule included a GPS scavenger hunt, hiking and partying. Well known DJs kept things upbeat. “We danced non-stop at the pool party for 15 hours,” recounts Perri Rothenberg from the marketing department. “A thousand people have a lot of energy!”

“The miracle of Trivago”, is how Rolf Schrömgens, co-founder and chief executive of the hotel search engine, describes company outings like this. When the IT nerds and the PR people mix on the dance floor, there is better collaboration between departments. Mr. Schrömgens declines to say what the excursions cost: “Our company trips bring a high return on the investment,” he boasts.

Only four years ago, a Trivago excursion had fewer than 300 employees and more of a family atmosphere. But the Düsseldorf-based start-up has grown rapidly and is making an initial public offering, or IPO, on New York’s Nasdaq Friday.

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