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Published · transcript-backed

Speaker unverified: belief

26 Jul 2017 Acquired Booking.com with Jetsetter & Room 77 CEO Drew Patterson

“Expedia I think has a 40% stake in Trivago. The founder is still part of it. But yeah, it’s part of the Expedia portfolio.”

— Speaker unverified

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Everything needed to verify it.

Speaker
Speaker unverified
Attribution
Not verified from this transcript
Claim type
belief
Recorded
26 Jul 2017
Publisher
Acquired

Transcript context

…And they’re Expedia-owned, right? Expedia I think has a 40% stake in Trivago. The founder is still part of it. But yeah, it’s part of the Expedia portfolio. But taking the same playbook in the sense of can we get enough demand here to make this a platform that gets some lock-in? But the follow-up question, if you wanted to go spend $3.5 billion a year on marketing, could you do it? Absolutely. This is one tech theme I was thinking about too. After talking to sort of a former Expedia marketing person, this person was mentioning that Trivago is like absolutely exceptional at digital marketing and really understanding exactly when to be bidding on Google, understanding exactly how high value that traffic is, how high value that keyword is, it's super high fidelity, and instrumenting it all the way from placing the ad all the way through the end of the transaction and continuing to track that lifetime customer value over time. It seems like the way that you kind of win on this is better and better digital marketing. I think there was actually a lot of articles back around the time of this acquisition that Booking had sort of been incredibly successful because of their mastery of being able to buy keywords on Google, and there’s definitely an opportunity to do better than that now as Google’s tools get more and more sophisticated for this, and I think that it goes to show that Google really does take a tax on e-commerce broadly and with this as an enormous category, like I’d love to see travel as a revenue driver for Google and I think one way that Airbnb is disrupting here and I wonder if somebody else can disrupt in the hotel world rather than just in the kind of specialized Airbnb world is, can you acquire demands of travelers and retain them as your customers without them going back to Google and you having to reacquire them? And Google being the central source of where people go to search for travel stuff all the time.…

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