Rising inflation hurts many companies. When raw materials or labor prices rise, profit margins tend to fall. But travel-search provider Trivago has seen a side benefit from rising prices: greater demand.
Trivago is a metasearch company, aggregating listings from hotels, resorts, and other online travel companies, which consumers use to compare costs. While people often search casually when travel is cheap, they rely on comparison sites when prices rise, says Chief Financial Officer Matthias Tillman. The concern: that inflation could trigger a pullback in demand. So far, Tillman says, that hasn’t been a problem. The company also expects to benefit from China reopening to more travelers, with greater competition for hotel rooms sending consumers to Trivago to find deals.
Trivago’s Secret Weapon: Inflation Driving Comparison Shopping
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