May 15 Trivago NV is benefiting from a
surge in the listing of alternative accommodations, even as
hotel referrals generate the lion's share of sales, its CEO
said, after the company reported a 68 percent jump in quarterly
"This growth that we have is basically also due to the fact
that we are growing stronger in alternative accommodation,"
Chief Executive Officer Rolf Schromgens told Reuters in a
telephonic interview from his office in Dusseldorf, Germany.
Apartment sharing sites such as Airbnb and HomeAway, owned
by U.S. online travel firm Expedia Inc, have fueled
growth in the vacation rental market, which is expected to hit
about $194 billion by 2021, according to market research firm
Technavio, as more millennials look to tap the sharing economy.
The market, which includes shared apartments and vacation
rental homes, was valued at more than $100 billion in 2016.
"Booking.com or Expedia are adding more and more alternative
accommodation to the inventory. And when they are adding, we are
adding that too," Schromgens said.
Booking.com is a unit of Priceline Group Inc.
Shares of Trivago, majority owned by U.S. online travel firm
Expedia, rose as much as 22.8 percent to a record high of $21.89
in early trading on Monday.
Trivago allows customers to search through hotel deals
aggregated across a variety of online travel sites and generates
much of its revenue when a customer clicks on the offers.
Priceline Group and its affiliated brands, including
Booking.com, accounted for 43 percent of Trivago's total revenue
in 2016, while Expedia comprised 35 percent of total revenue.
Trivago also raised its 2017 revenue growth forecast to 50
percent, from 45 percent previously, and adjusted earnings
before interest, tax, depreciation and amortization to be
"slightly up", compared with flat to a slight increase earlier.
Through Friday's close, the company's shares had gained
about 62 percent since their debut in December.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj