Updated: Tripadvisor stock plunges as CEO and CFO departures heighten concerns over profitability turnaround

Stock price data updated, and analyst comments added in paragraphs 7 and 8

Nathan Gomes/Apratim Sarkar

Reuters, November 5 - Online travel company Tripadvisor (TRIP.O) announced on Thursday that its CEO and CFO will be stepping down. The company is currently facing stagnant sales, AI-driven competition, and weakness in its core hotel search business; as a result, its stock price dropped 23%.

The company’s share price is seeing its largest single-day decline since March 2024.

Tripadvisor said CEO Matt Goldberg will depart in February and CFO Michael Noonan will step down by the end of this year.

The Needham, Massachusetts-based company also said that as part of a previously announced restructuring plan, it will cut about 425 roles for employees and contractors in the “hotels and other” business segment.

Tripadvisor stated that its board is working with an external firm to identify potential candidates to lead the company “into a new chapter.”

The management changes come as Tripadvisor faces pressure in its traditional hotel search business, where travelers are increasingly turning to AI tools to research destinations, compare hotels, and plan trips—rather than relying on legacy search platforms—threatening the company’s commission and advertising revenue.

Morningstar analyst Dan Wasiolek described the challenges facing Tripadvisor as structural issues, noting that competition in the company’s core hotel search business from Google and other AI tools is intensifying.

“It’s simply that in the era of artificial intelligence, their meta search business faces even greater pressure. Again, I don’t think there was any other option at the time,” Wasiolek added.

Tripadvisor has been working on a strategic transformation focused on its experiences business—including the tours and activities platform Viator—while streamlining traditional operations.

The company has also faced pressure from activist investor Starboard Value, which criticized management and urged the company to re-evaluate its strategic options, including potential sale scenarios.

According to London Stock Exchange Group (LSEG) data, the activist investor has reduced its stake from around 9% to 4.35%.

Additionally, Tripadvisor reported a drop in third-quarter adjusted profit on Thursday, due to increased expenses putting pressure on profit margins.

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