High Margin = Poor End User Experience

Tripadvisor really knows how to monetize travel. And according to a post on Techcrunch: “It’s more or less the worst experience in the world for an end user.”

The worst end user experience somehow generates spectacular growth: Tripadvisor’s revenue for Q3/2010 grew by 40% from 2009 (.pdf). It means their revenue for 2010 will be around $495 million with margins “well north of 50%”.

$250 million yearly profit!? And what does it mean to the 40 million unique monthly visitors? According to TC:

You’re greeted at the top by a banner ad. Below that, you get 10 sponsored links. To the right of that, affiliate links. Below that, hundreds more affiliate links. And more banner ads. There is not a single piece of actual content on this page. It’s one giant ad. And there are 76 pages of this.

Right. :)

Here’s their page that is the 1st hit on Google: Paris Vacation. In all fairness: it’s not Tripadvisor’s main page for Paris. The main page is better, but I still prefer Tripsay’s version of showing information about Paris, France.

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