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Trivago N.V (Nasdaq: TRVG) is the world's largest hotel search company. They are focused on reshaping how travelers find and compare hotels, with personalized searches that show prices from different vendors in one place all at once. The company gives users the power to find, compare and book hotels in their own language with ease. Trivago operates in three segments: the Americas, Developed Europe, and the Rest of the World.
Since Covid-19 reached a pandemic status, the travel sector has been hit harder due to the collapse of world traveling. Trivago’s revenue tumbled 73% to 38.2 million euros during 2020, however the company effectively controlled costs and overcame the loss, managing even to improve its platform and cost structure.
Trivago modified its bidding auctions, so partners pay for bookings rather than clicks, which align customers interests with its own. One of the biggest changes came with the acquisition of weekend.com, creating trivago Weekend that offers suggestions for local destinations. The new product gives options for travelers to discover places around them or find safer destinations. Trivago also announced a partnership with TUI Musement, resulting in a convenient way to book travel related activities.
All those market movements point to a successful return to historic levels. The Covid-19 vaccines rollout also hit positively global travel demand. Trivago has a market cap above $1BI, which appears to have substantial upside potential. However, the success of the hotel search company depends mostly on the capitalization strategies during this moment of the pandemic.