Tripadvisor

Tripadvisor
	File:Tripadvisor logo.svg Logo used since February 2020 rebranding
Company type	Public company
Industry	Travel, Internet
Founded	February 2000; 26 years ago
Founder	Stephen Kaufer, Langley Steinert, Nick Shanny, Thomas Palka
Headquarters	Needham, Massachusetts, United States
Area served	Worldwide (operates in 40 nations)
Key people	Matt Goldberg (CEO)
Products	Travel agencies, comparison shopping platforms, mobile applications with user-generated content
Number of employees	Approximately 3600 (estimated from 900 layoffs representing 25% in 2020)
Website	www.tripadvisor.com

Tripadvisor is a U.S.-based digital travel enterprise that manages travel agencies, comparison shopping platforms, and mobile applications featuring content generated by users.

Its primary platform, Tripadvisor.com, operates in 40 nations and supports 20 languages, hosting nearly 1 billion reviews for approximately 8 million businesses. Additional brands under its umbrella include Bokun.io, Cruise Critic, FlipKey, TheFork, Holiday Lettings, Housetrip, Jetsetter, Singleplatform, Niumba, SeatGuru, and Viator. The company's main office is located in Needham, Massachusetts.

In 2023, about a quarter of Tripadvisor’s income was derived from pay-per-click advertising collaborations with subsidiaries of Expedia Group and Booking Holdings.

History

Tripadvisor was established in February 2000 by Stephen Kaufer, Langley Steinert, Nick Shanny, and Thomas Palka. The idea stemmed from Kaufer’s dissatisfaction while organizing a family holiday.

Prior to its official launch in September 2000, the startup raised $2 million in initial funding from Flagship Ventures, the Bollard Group, and private investors.

In 2004, Tripadvisor was acquired by IAC/InterActiveCorp. Subsequently, when IAC separated its travel businesses in August 2005, Tripadvisor became part of Expedia Inc.

From 2007 to 2008, the company expanded via acquisitions such as Smarter Travel Media (which operates SmarterTravel.com and SeatGuru), The Independent Traveler (publisher of Cruise Critic), UK-based Holiday Watchdog, Airfarewatchdog, Virtualtourist, OneTime.com, and secured a majority share in FlipKey.

In April 2009, Tripadvisor entered the Chinese market and later that year purchased the local search engine Kuxun.cn; however, Kuxun was sold to Meituan in August 2015.

June 2010 marked the acquisition of Holidaylettings.co.uk, the largest independent vacation rental platform in the UK. That same year saw the introduction of Jetsetter (previously known as SniqueAway), a members-only travel deal website. In July 2011, Tripadvisor acquired Where I've Been, a Facebook application.

Expedia finalized Tripadvisor’s public spin-off in December 2011, with shares beginning to trade on NASDAQ under the symbol TRIP.

Between 2012 and 2014, Tripadvisor aggressively expanded through purchases including Wanderfly (a travel inspiration service), Jetsetter (luxury flash sales), GateGuru (a flight information app), Oyster.com (hotel reviews), Vacation Home Rentals, LaFourchette/TheFork for $140 million, Viator for $200 million, Mytable, Restopolis, and Tripbod.

In 2015, acquisitions encompassed Dutch restaurant review site Iens and reservation system SeatMe; personal journal app Rove via ZeTrip Inc.; Portuguese startup BestTables; and Australian restaurant booking platform Dimmi for $25 million.

April 2016 saw the purchase of HouseTrip (holiday rental service), followed by the acquisition of Citymaps.com in August for its social mapping technology.

Tripadvisor acquired Icelandic travel booking software provider Bokun in April 2018 and later integrated DoorDash into its restaurant listings that same year.

In December 2019, SinglePlatform was acquired for $51 million along with BookATable from Michelin Guide.

The company rebranded from TripAdvisor to Tripadvisor with a lowercase "a" in February 2020.

As a result of the COVID-19 pandemic’s impact on travel demand, approximately 25% of the workforce—around 900 employees worldwide—were laid off in April 2020; this included closing offices in Boston and San Francisco. In July 2020, eight brands such as Smarter Travel and Airfarewatchdog were sold to Hopjump.

In December 2020, China banned Tripadvisor’s app alongside over one hundred others citing regulatory reasons.

By the end of 2020, Tripadvisor.com attracted more than 90 million monthly visitors; its mobile application ranked within the top ten travel apps across 26 countries as of early 2021.

In May 2022, Matt Goldberg took over as CEO from founder Stephen Kaufer.

Criticism of the review system

Tripadvisor has been subject to disputes over its acceptance of anonymous reviews without verification for hotels, inns, bed and breakfasts, and dining establishments.

In May 2021, the platform faced backlash after allowing an offensive review of the Auschwitz-Birkenau State Museum, in which a visitor recounted taking a baby to the gas chambers. Although Tripadvisor initially maintained that the review complied with its guidelines, it removed the content following widespread criticism on social media.

Fake reviews

The issue of fraudulent reviews has persistently challenged Tripadvisor's credibility. In March 2014, attention was drawn to its Chinese website when a single user posted evaluations for 51 restaurants in Paris and 50 hotels worldwide within one month. Later, in November 2017, journalist Oobah Butler exposed how he monetized submitting fabricated positive restaurant critiques.

In September 2019, consumer organization Which? found Tripadvisor still struggling to filter out fake reviews. Their analysis of nearly 250,000 reviews for leading hotels in popular tourist destinations revealed that approximately one in seven contained unmistakable signs of deceptive positive feedback. Tripadvisor defended its ongoing measures against such allegations.

Phantom establishments

In May 2013, a disgruntled entrepreneur created a fictitious restaurant listing that misdirected customers to an alley cluttered with garbage bins. This fraudulent entry remained live on Tripadvisor for roughly two months before detection.

In November 2017, journalist Oobah Butler manipulated the system by posting fake reviews that propelled a non-existent restaurant, The Shed at Dulwich, to become one of London’s top-rated venues on Tripadvisor. This incident exposed significant weaknesses in the platform’s review verification protocols and raised questions about the dependability of user-generated content shaping consumer perceptions.

Reviews alleging criminal acts

In November 2017, Tripadvisor removed reviews submitted by two women who accused the Iberostar Paraiso Maya resort in Playa del Carmen of rape incidents dating back to 2010 and 2015, including an allegation involving a hotel security officer. Although hotel personnel promised to notify authorities, no action followed. The women posted warnings on Tripadvisor about their experiences, but their reviews were deleted. Kristie Love’s review was eventually reinstated; however, Jamie Valeri’s was classified as "hearsay" and not restored. Investigations uncovered at least 12 similar cases at Mexican hotels where guests attempted to alert others about crimes ignored by resorts or law enforcement but had their warnings removed or rejected by Tripadvisor.

Meriton’s incentives offered to guests for altering reviews

In October 2015, a former manager at Meriton disclosed that guests were given incentives to change negative feedback on Tripadvisor. Subsequently, in 2018, Meriton was penalized with a AU$3 million fine by the Australian Competition & Consumer Commission for misleading consumers through manipulation of online ratings.

Malicious reviews

In 2012, Richard Gollin, proprietor of a guesthouse in the Outer Hebrides, initiated legal proceedings against Tripadvisor in a Scottish Sheriff Court over defamatory statements. While Tripadvisor initially argued for US jurisdiction, it later accepted UK legal authority. The court determined that Tripadvisor’s terms of use constituted a binding contract with businesses under review. The case raised concerns under the Unfair Terms in Consumer Contracts Act 1977 and was escalated to a higher court. Due to financial limitations, Gollin ultimately withdrew the lawsuit.

In March 2015, German hotel operator Dietmar Doering from The Cosy Beach resort in Sri Lanka accused Tripadvisor of hosting harmful malicious reviews and pursued legal action seeking damages estimated at US$500,000.

Politically Motivated Fake Reviews Targeting Establishment

In 2019, a guesthouse functioning as the headquarters for Reform UK in Norfolk experienced a surge of coordinated one-star ratings on Tripadvisor. This property was owned by the spouse of Catherine Blaiklock, the party's leader, demonstrating how politically driven fake reviews can pose significant threats to a business’s reputation.

Penalty for Unfair Commercial Conduct

In December 2014, the Italian Antitrust Authority imposed a €500,000 fine on Tripadvisor, mandating both the company and its Italian branch to cease disseminating misleading information regarding the origins of reviews. The vulnerability of Tripadvisor’s review system was further exposed in June 2015 when a fictitious restaurant, fabricated by a newspaper, briefly ascended to the top of the site’s Italian rankings.

In August 2013, Kenneth Seaton was unsuccessful in a $10 million lawsuit against Tripadvisor after his Grand Resort Hotel and Convention Center in Tennessee was labeled as "America's dirtiest hotel." The court determined that the ranking constituted protected opinion rather than baseless allegations.

Violations of Advertising Regulations

In September 2011, after a complaint by the online investigation company KwikChex, the UK Advertising Standards Authority (ASA) examined Tripadvisor's assertions about providing reliable traveler reviews. The ASA ruled that Tripadvisor should not claim or imply that all reviews were authored by genuine travelers or were entirely honest and trustworthy. Consequently, the phrase "reviews you can trust" was removed from its UK platform. This was replaced with "reviews from our community," a rebranding effort that had commenced prior to the ASA’s investigation.

The ASA highlighted concerns that consumers might be deceived by fraudulent submissions, which could be posted without verification. However, it acknowledged Tripadvisor’s deployment of "advanced and highly effective fraud systems" aimed at detecting and eliminating fake content. Around 30 hotels faced penalties for dubious reviews, including one in Cornwall that incentivized guests to provide positive feedback.

Tripadvisor utilizes a verification mechanism that examines IP addresses, email data, and behavioral patterns to detect suspicious or abusive contributions. Moreover, its user base can flag questionable reviews, which are then assessed by Tripadvisor staff to uphold content authenticity.

Security Breach Incident

In March 2011, Tripadvisor revealed a data breach incident where an unauthorized individual accessed its email subscriber list, potentially for spamming purposes. Importantly, no passwords or sensitive user data were compromised during this event.

Drip Pricing Violation

In July 2012, Tripadvisor was fined $80,000 by the United States Department of Transportation for failing to comply with regulations requiring airfare quotes to include all taxes and fees upfront—a practice known as drip pricing. This regulation had been implemented earlier that year.

Association with Israeli Settlements

On 12 February 2020, the United Nations released a database identifying companies involved in activities connected to Israeli settlements located in the West Bank, East Jerusalem, and the Golan Heights. Tripadvisor appeared on this list due to its provision of services supporting these settlements, which are widely regarded by the international community as breaches of international law.

Denigration

In November 2022, the Paris Commercial Court mandated Tripadvisor to compensate Viaticum, the company behind Bourse-des-vols.com, with €57,000 covering damages and legal expenses due to defamation.

Awards

Tripadvisor earned the distinction of America's Best Midsize Employer from Forbes in 2019.

External links