Trivago ‘benefits’ from rise in cost of living

The soaring cost of living signals good news for hotel comparison sites which will benefit from cashconscious consumers hunting down cheaper deals, the boss of Trivago has said.

While many businesses could suffer as high inflation strips the savings of UK households, money comparison platforms could see a boom in activity, according to the boss of the accommodation search website.

Axel Hefer, Trivago’s chief executive, told the PA news agency that consumers still want to go on holiday but are more likely to invest time in booking moneysaving trips.

While the travel chaos that has been hitting UK airports in recent months will eventually ease up as supply improves to meet demand, he predicted.

“The more that’s at stake financially, the more time people are willing to invest in the search for their holiday,” Mr Hefer said.

“Holiday prices will have to go up because hotels and transportation companies are not fully staffed, and all the costs that go into providing the service, from food and energy to construction, are rising.

“But as long as there is higher inflation and people are conscious of spending, our business will perform well.”

Mr Hefer’s comments come after Trivago reported a 52% jump in its year-on-year revenue, as Covid restrictions lifted and pent-up demand for holidays was released.

But the company said the uncertain economic environment had led it to put down an impairment charge of 84.2 million euros (£71.1m).

The group reported operating losses of 59.8m euros (£50.3m) for the second quarter.