Starboard Value’s star investor, Paul Smith, has urged Tripadvisor to consider selling its restaurant‑booking arm. The move could reshape how the travel site runs because the platform is a key part of Tripadvisor’s future growth plans.
Tripadvisor built its booking hub in the mid‑2000s and now lets millions of travelers reserve table spots through its own site. The service, which powers the “Tripadvisor Restaurant Reservations” brand, has the potential to lift the company’s earnings by moving a larger share of revenue into recurring online‑booking fees. In a recent note, Smith said the platform is a “high‑margin, high‑growth engine” that should be evaluated for monetization or a sale.
The suggestion comes after Tripadvisor added a new front‑end developer team and raised the profile of its reservations business. The company has already improved its absorption rate and introduced “Reserve Now” links that appear on hotel pages. Smith’s comments align with the hedge fund’s long‑term “cash‑flow play” strategy.
Analysts have taken notice. On Thursday, Starboard Value released a brief research update that endorsed Tripadvisor’s vision for the reservation system but added that a possible payout could accelerate the company’s return on equity. The fund’s 12‑month target price for Tripadvisor’s stock—a “strong buy” with a 15‑percent upside—remains unchanged. If the reservation platform sold, the value of the transaction could swell the company’s balance sheet, giving investors a clearer path to profitability.
Supporters of the sale argue that turning the booking system into a standalone product would unlock capital while allowing Tripadvisor to focus on core travel content. Others point out that the platform’s integration into the website helps keep users on Tripadvisor longer, creating higher advertising revenue. The “both‑sides” model—part service and part advertising—has helped Tripadvisor build a loyal customer base, but a sale would simplify the business model.
The recommendation also raises the possibility of a strategic partnership with larger reservation firms, just like the historic deal with OpenTable. A sale could appeal to a partner that specializes in hospitality operations, versus retaining the technology as an internally managed asset.
What’s next? Starboard Value plans to discuss the proposal in its upcoming governance meeting with Tripadvisor’s board. The company’s CEO, Jeff Montgomery, said the board remains “open to new ideas” and will evaluate how the reservation platform impacts future revenue streams. Movers in the financial world watch carefully, because a fresh capital injection or syndicated acquisition could shift the stock’s momentum.
For now, Tripadvisor’s restaurant‑booking platform stays a key focus for investors and analysts. The potential sale signals a willingness to consider bold moves that could trim costs, raise cash, and deliver new value to shareholders. Whether the board decides to sell or hold on tight, the discussion has put a spotlight on Tripadvisor’s future strategy and the growing importance of online table reservations in the travel‑tech ecosystem.
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