Starboard Capital’s Jeff Smith has urged TripAdvisor to put its restaurant booking platform up for sale.
Smith, who runs the private‑equity firm Starboard, told a recent investor call that TripAdvisor’s “restaurant booking” arm has been a drag on the company’s finances. The platform, which lets diners reserve tables and see reviews, has already posted an operating loss of more than $100 million last year. “We don’t see the same upside that we see in the travel‑search side of the business,” Smith said. He added that selling the unit could free up money for higher‑growth areas such as AI‑powered travel recommendations and loyalty programs.
TripAdvisor’s leadership has defended the platform. CEO Danny Russell said the company is “focused on growing the restaurant space” and that the booking tool adds cross‑sell value for its users. Russell also noted the competitive pressures from rivals like OpenTable and Resy, but argued the scale of TripAdvisor’s global audience gives the platform a unique edge.
Market analysts say Starboard’s point is not unreasonable. The unit’s revenue is estimated at only a few hundred million dollars, while its operating costs are high. In a broader context, TripAdvisor has lost roughly $200 million in its core travel‑search business over two years, pushing the company to rethink how it uses capital.
Some investors think a sale could fetch a price of $300 million to $400 million, according to private‑equity experts. Others worry that a buyer could run the booking system more efficiently than TripAdvisor can now. Meanwhile, TripAdvisor’s board has not yet made a public statement on whether it will seriously consider selling the platform.
If a sale goes ahead, TripAdvisor would likely stay in the online travel space, focusing on hotel and flight booking. The company will also keep its Review and Rating portal, which generates most of its revenue today.
For now, the debate continues, with Starboard asking TripAdvisor to decide whether the restaurant booking arm should stay or go. Whether TripAdvisor will heed this advice remains to be seen.
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