By Chloe Aiello
The trend toward individualization in travel will only deepen, so it makes sense for travel and hotel providers to lean in, Trivago CEO Rolf Schrömgens told Cheddar on Wednesday.
"We as a customer, we expect individual offers. We expect that our individual needs are met. And this trend toward individualization is ongoing and will not stop. So going into the long tail of accommodation is not only for us very important," Schrömgens said.
Schrömgens comments follow Trivago's first-quarter financial report in which the travel technology company disclosed its efforts to provide more "alternative accommodations" ー or anything that isn't a hotel, including hostels, homes, apartments, and more ー on its platform. It currently has 1.8 million alternative units listed.
Trivago isn't the only company deepening its exposure to alternative rentals. Marriott shocked the industry on Monday after it announced it launched a new home-rental business to rival Airbnb, which currently has more rooms available across its platform than the top four hotel operators combined, The Wall Street Journal reported.
The travel provider also reported declining sales but a bump in profit, according to Nasdaq. The company attributed some of the sales declines worldwide to "optimizing and recalibrating ... Advertising Spend," which led to less spending in advertising, but more revenue per referral.
As the company looks to optimize its advertising, it is also looking to broaden its appeal to more than "40 plus year old men" by hiring spokespeople other than Trivago Guy Tim Williams, who was arrested in April for driving while intoxicated in Houston, Texas.
Schrömgens said the company had begun testing out "multi-character spots" that also appeal to women and families, even prior to Williams' arrest.
"Instances like that are just like a wake-up call to us that this is also the right strategy to go forward," Schrömgens added.
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