Golf-Hotel-Resorts AND CASINO News: Hilton's Caution on Deals + Trivago Sees Profits Again + Investors Punish Travelzoo

October 25, 2018

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Editor's Note

On a day when earnings from the travel sector came fast and furious, one interesting thread we saw Wednesday popped out of Trivago's third quarter report — underscoring the current advertising dilemma for online travel. It comes down to a question brands have wrestled with for years: How much advertising is the right amount of advertising? Everyone wants to strike the perfect balance so as not to waste dollars on ads that don't deliver results.

Trivago is clearly grappling with this issue. On Wednesday, it said it had trimmed its own spending for advertising (who hasn't seen those Trivago TV spots?), a move that helped the company rein in costs and return to profitability. At the same time, its revenue dropped 12 percent in the quarter year-over-year, largely because less advertising and promotion resulted in fewer bookings, and revenue as result. It seems the balance needs adjusting, but investors loved seeing profit again. Trivago's share price had its biggest jump on Wednesday in two years.

— Tom Lowry, Managing Editor

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Hilton is the kind of hotel company that's adamant about sticking to its guns. It says the future outlook looks fairly solid — unless, of course, fears of a looming recession come true.

Ad Spending Cuts Help Trivago Return to Profitability

Shares in the hotel search company rose the most in two years on news that a cut in ad spending had pushed the Expedia-controlled company into the black. But the company, which once enjoyed meteoric growth, seems unlikely to return to turbo-charged revenue gains anytime soon.

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There's nothing wrong with a company investing and pivoting, as Travelzoo is doing yet again. There is something wrong when a company controlled by a founder doesn't reboot with new leadership.

Allegiant Air's Remedy to High Fuel Prices: Buy More Efficient Jets

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Planners Brace for Complicated New Era

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Hilton Debuts New Hostel-Inspired Brand, Motto

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