PwC Strategy& Study Shows that TripAdvisor and TheFork Influenced Nearly $8 Billion in Diner Spending within the Growing Global Restaurant Industry
Over 60,000 Jobs Worldwide Generated or Sustained by TripAdvisor and TheFork in 2018
TripAdvisor, the world’s largest travel site* and TheFork, the leading online restaurant reservation platform in Europe and a subsidiary of TripAdvisor, announced the “2019 TripAdvisor and TheFork Economic Impact Study in the Restaurant Market” in partnership with Strategy&, part of the PwC network, revealing insights about the size, growth and key trends of the global dining industry. Strategy& also found that TripAdvisor and TheFork influenced nearly $8 billion in 2018, including supporting more than 60,000 jobs in the 6 countries within the scope of the research.
“TripAdvisor and TheFork are proud to contribute to the growth of the restaurant industry and create value where we operate globally,” said Bertrand Jelensperger, senior vice president, TripAdvisor Restaurants and CEO, TheFork. “Our ambition continues to be to help drive growth and digitization within the restaurant and hospitality industry as we connect more diners with exciting culinary experiences that match their interests.”
“The size and acceleration of the global dining industry is very encouraging for restaurateurs in the U.S. and beyond,” said Pierre Péladeau, Partner of Strategy&. “It’s also clear that TripAdvisor and TheFork have a substantial, positive economic impact on this industry in a number of ways, from driving incremental revenue for dining businesses to supporting local jobs.”
5 Keys for Businesses to Thrive Online: From Planning to Booking
Restaurants that use travel-planning and restaurant reservation platforms like TripAdvisor and TheFork see a boost to their bottom line while also providing a service to their customers. The Strategy& study reveals five critical actions for dining businesses to thrive online:
- Be where hungry diners are doing their research: Millions of consumers turn to travel planning sites and apps to find the perfect place to eat. Having a presence on TripAdvisor, at no cost to the business, leads to +2% of average annual restaurant revenue.
- Engage diners online: Owners benefit from claiming their listing for free on sites like TripAdvisor and engaging with their diners, such as responding to their online reviews. Claiming a restaurant on TripAdvisor generates ~$15,000 incremental revenue on average per year for every claimed restaurant.
- Encourage online reviews: Businesses also benefit from asking diners to share their candid reviews and opinions online. Eateries with 51 to 100 total user reviews see an average +2% incremental revenue. Restaurants with a 4.5 bubble rating on TripAdvisor also exhibit 2% incremental revenue, more than restaurants with lower average ratings.
- Be bookable online: Restaurateurs who subscribe to TheFork’s reservation platform to make it easy for guests to book their property see an average of 16 times the return on their investment, and 10% increase in additional revenue.
- Consider leveling up with paid marketing: Owners should also consider paid marketing opportunities to increase traffic and revenue. Restaurants participating in TripAdvisor Premium capture an average 6 times more incremental revenue than restaurants that have not subscribed. Those with an active TripAdvisor Ads capture 5 times more incremental revenue than those without.
“The restaurant industry is going through a monumental period of digitization, as more and more consumers expect to compare places to eat online and seamlessly book a table from their mobile device,” said Jelensperger. “We believe the biggest online marketing opportunity for restaurants is still ahead of them, as 80% of diners are checking online before dining out, while restaurants are dedicating a limited amount of time and investment in online marketing.”