Trivago aiming alternative accommodation to deal Airbnb's pressure

Trivago N.V. aiming at smaller hotels as part of efforts to cut spending. The Düsseldorf-based hotel search company aims to increase its business share in independent hotels and alternative accommodation where customers dominantly reduce compensation. The latest move is seen as an effort to cope with pressure by peer to peer-based services such as Airbnb.

Priceline Group Inc. as the parent company generated 72 percent of revenue from Expedia and in the fourth quarter of last year. The rest come from small and medium online travel agencies, independent hotels, hotel chains, and alternative accommodation types such as campsites or vacation rentals.

Tinuku Trivago aiming alternative accommodation to deal Airbnb's pressure

"Trivago is expanding its hotel and accommodation offerings, which include all alternative accommodation," said Trivago CEO Rolf Schrömgens.

The company made its public debut in 2016 that allows customers to search through hotel deals collected at various online travel agencies. All companies have faced increasing competition from platforms like Airbnb and others that offer alternatives to traditional hotels.

The hotel network is also facing tough competition with online business sites by upgrading their websites and offering incentives for direct bookings. Trivago extends the base and advertiser listings are also potentially translatable to more users who are directed to the hotel's website rather than to a list of specific hotels.

"Users will compare prices for similar hotels to possibly offer different pricing to various booking sites," said Trivago spokesman.

Schrömgens says smaller independent hotels and lower room rates encourage customers to buy directly rather than through online portals. The company said revenue will increase between 5 and 10 percent this year. More loss is due to lower offer by customer and decrease advertiser.