Trivago cuts advertising as profitability returns
Hotel search engine Trivago returned to profitability in the third quarter as it cut its advertising spend.
The company, which has invested heavily in marketing in the past, said the move follows a broader trend in the market.
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Net income was €10m (£9m) in the third quarter, up from a net loss of €7.7m in 2017, while revenue contracted 12 per cent to €254m.
Chief executive Rolf Schroemgens told City PM the company will not increase investments in growth, choosing to focus on profitability. It is also introducing artificial intelligence to its platform.
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"We have really invested a lot in tech in the last two years. We were founded in 2005 and a lot of our tech infrastructure dates back to then.
"Looking forward, people will want searches to be very different to what they have seen in the past. We need a system which is constantly learning and improving based on artificial intelligence."