TripAdvisor Struggles on Hotel Weakness

It's always hard for a company to reinvent itself, and TripAdvisor (NASDAQ: TRIP) has made a big strategic shift that it found necessary in order to survive in a changing environment in the online travel segment. Many investors have been less than certain about TripAdvisor's ability to stand up to much larger, longer-established players in online travel. Yet that hasn't stopped the company from aggressively moving toward challenging rivals directly by offering customers another way to book the travel services they want.

Coming into Monday's third-quarter financial report, TripAdvisor investors knew that the money that the company would need to invest in restructuring its business and finding growth would weigh on near-term earnings results, but they hoped to see solid gains on the top line. Unfortunately, TripAdvisor's revenue growth wasn't as strong as expected, and the hotel business has proven to be tough to crack for the travel service. Let's look more closely at how TripAdvisor did and what's coming next for the company.

Image source: TripAdvisor.

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Source: Fool.com