Tripadvisor hotel revenue declines amid shifting search trends

Tripadvisor reported a 23% decline in hotel revenue for the second quarter, falling to $117.9 million. The company attributed the drop to a decrease in free search engine traffic and fewer travelers clicking through to booking sites. Tripadvisor expects hotel revenue to decline by an additional 20% to 23% in the third quarter, noting increased marketing costs as the company buys traffic to offset the loss of organic search visitors.

The shift in market share is evident as Google Hotel Ads has grown to reach 83% of hotels connected to metasearch sites, while Tripadvisor's usage among European hotels has dropped significantly since 2013. Despite the decline in direct clicks, Tripadvisor remains a critical data source for AI assistants, which frequently cite its reviews when making hotel recommendations.

In response to these shifts, Tripadvisor is seeing growth in its tours segment, with Viator bookings rising 10% during the quarter. Meanwhile, marketing industry insights from the UNBOUND 2026 conference suggest that AI is reshaping search, with AI-driven queries now accounting for roughly 56% of worldwide monthly search volume. Experts suggest that while AI may handle lead qualification and targeting, human involvement remains essential for crafting brand messages.