Trivago N.V. TRVG has traded lower since reporting financial results on Monday despite the company’s optimism surrounding travel trends.
“The U.S. is recovering quite good. We are seeing a steady recovery … and more recently we saw city travelers coming back, an important segment for the industry,” Trivago CFO Matthias Tillmann said Wednesday on “Benzinga Live.”
City travel diminished following the COVID-19 pandemic, but has recovered significantly in the U.S. Tillmann expects this trend to continue internationally as COVID restrictions are lifted. He noted that other factors have negatively impacted the company internationally, including the war in Ukraine.
“But through March, we have seen a recovery from that and since the beginning of April, we are back to pre-conflict levels,” the Trivago CFO said. The company has also seen volume increase to about 70% of what it was in 2019 before the pandemic, he added.
Reasons For Increased Optimism: In 2021, Trivago saw volumes trending in the right direction, but desires to travel were hampered by lingering COVID-19 variant concerns.
“This year, it is different,” Tillmann said. “We see the same kind of desire to travel … but it’s easier to do so.”
The Trivago CFO told Benzinga that people are more willing to spend on travel after being restricted for two years. It’s also easier to travel from a financial perspective with household savings at elevated levels, he added.
“We are pretty excited and optimistic about the upcoming months,” Tillmann said.
Trivago aggregates prices from other travel companies and makes it easy for customers to find the best deal on hotels, flights and rental cars — a service likely to be welcomed by travelers with pent-up frustrations stemming from varying travel guidelines.
“Even if you don’t find your accommodation on Trivago, you can still check … if there is a supplier that has a better price, and just pick the one that suits you best,” Tillmann said.
The Trivago CFO went on to talk about cancellations, the company’s approach to M&A and more.
See the full interview here:
TRVG Price Action: Trivago has traded between $1.92 and $4.17 over a 52-week period.
The stock was down 4.55% at $2 Wednesday afternoon, according to Benzinga Pro.
Photo: JoshuaWoroniecki from Pixabay.