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TripAdvisor to List All Marriott Hotels on Instant Booking - Analyst Blog

TripAdvisor Inc.TRIP , the world's largest online travel research company, recently announced an expanded partnership with the leading hotelier, Marriott International MAR .

Following the announcement, TripAdvisor's share price gained more than 14%, while Marriott's share price increased about 0.4%.

Per the partnership, TripAdvisor will add Marriott's global hotel portfolio to its Instant Booking platform. Users can now click on the "Book on TripAdvisor" button to make a hassle-free hotel reservation at any Marriott hotel worldwide, without leaving the TripAdvisor website. Also, customer support inquiries will be handled by Marriott representatives, thus offering a more efficient hotel booking experience.

Given Marriott's property locations and strong brand recognition, TripAdvisor will increase its conversion rates as users are now more likely to click on the link for booking rather than just for gathering information.

The Instant booking platform, was launched in Jun 2014, was initially made available in the U.S., and is expected to reach other international markets in the quarters ahead. Currently, there are a few partners offering instant booking facility such as, Choice Hotels, Getaroom.com and TripAdvisor's own, Tingo. However, the company expects to involve more partners over time.

TripAdvisor has built a strong portfolio through partnerships, continuous product upgrades, expansion into international restaurant reservation space and strategic acquisitions. These have also increased page views per visitor since users now spend more time on its website. The company is striving to help consumers make their travel decisions easily while expanding the revenue base.

In the first quarter reported recently, TripAdvisor's earnings missed the Zacks Consensus Estimate by a penny. However, the company witnessed strong top-line growth, driven by strength in click-based and display-based advertising business. Over the long term, TripAdvisor is well positioned to grow, given the expanding user base, improving margins and increasing monetization of social and mobile platforms.

Currently, TripAdvisor has a Zacks Rank #3 (Hold). A couple of better-ranked stocks are Changyou.com Limited CYOU and Tucows Inc. TCX , both sporting a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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