Tripadvisor Says Its AI Itinerary Users Generate 3X Revenues of Average Users

Hidden in Tripadvisor’s latest earnings from earlier this week was some updates on its AI-based trip planning feature that it launched in July, along with some concrete numbers on performance of AI-assisted travel planning.

In the earnings call, CEO Matt Goldberg said that the company has seen much higher conversions (and revenues) from people who use their Generative AI trip planning tool.

From the earnings call transcript, this extract below has all the details of Tripadvisor’s early experiments with public AI tools, use in creating content, summarize reviews and for customer service, I have highlighted the important parts and metrics in bold.

“At our last call, we mentioned the promising early feedback from a significant upgrade to trips our core trip planning and itinerary product including a new generative AI powered itinerary feature. We’re still early in the journey and are iterating continuously, but we’re seeing compelling results. During the first three months in beta, members who created itineraries returned at a much higher rate within the first seven days than members who hadn’t created an itinerary and we’ve observed that higher return rate continuing for the full month thereafter as well. Importantly, members who build an itinerary also generate on average three times higher revenue than the average Tripadvisor member and the average member already monetizes at approximately 10 times the rate of non-members. We believe the initial data is a good indication of early product market fit and we’re on a plan to launch this full trip planning and itinerary product on our mobile app, on iOS and Android this quarter.

Another stated priority is to drive deeper engagement with travelers leveraging our unique content and data at scale. We continue to deliver progress in Q3, let me share two examples. First, we’ve been leveraging generative AI and machine learning tools to bring together guidance from our community and our editorial team on a set of our most popular destination pages, think New York City, Paris, and so on. Curating fresh, relevant content on these pages is driving over 15% more saves so travelers are engaging more frequently by adding a desired hotel, restaurant, or experience they discovered through our product to the trip they’re planning. Second, we recently rolled out a test across tens of thousands of hotels that uses Gen AI to summarize reviews and deliver clear insights to travelers on key quality attributes as they consider their choices.

Let me give an example, for me the single most important factor in booking a hotel is that I can get a quiet night sleep. We’re now leveraging our data to provide a clear signal about the noise level of a particular hotel, along with other critical qualities we know are important to travelers like atmosphere, service, value, and more. Gen AI provides the perfect way to summarize content at scale, trust is still at the center of why people come to us, so in this feature we share the specific underlying reviews from our community of travelers that were used to generate each insight and provide a direct path to go deeper on what matters most to the traveler. These examples are just a few of the many encouraging proof points that our teams are driving, which gives us conviction in our strategic direction, prioritization, and sequencing. But we know this only matters if it translates the financial impact over time, and we’re also pleased with the leading indicators we’re getting on monetization.

I mentioned before the significantly higher revenue we see among users who create a trip. As these users build an itinerary and engage more deeply they’re exposed to monetizable hotel and experience recommendations to relevant ads from our partners, all of which were increasingly integrating directly into this user journey. And the refreshed content on our destination pages is a perfect point in the journey to surface these options to a traveler. We’ve already observed double-digit increases in experiences revenue on the pages with these content enhancements and we are just beginning to scale.”