Tripadvisor Faces Activist Pressure as Starboard Value Takes Stake, Urges Strategic Changes

Activist investor Starboard Value acquires a stake in Tripadvisor and pushes for a review of the travel site's strategy, raising questions about the company’s future direction.

Starboard Value Buys Stake in Tripadvisor, Sparking Calls for Strategic Overhaul

Tripadvisor, the Massachusetts-based travel planning giant, is under new pressure from activist investor Starboard Value, which disclosed a notable stake in the company and called for a significant shift in its business strategy. The move comes as Tripadvisor faces evolving industry challenges and mounting competition, with Starboard’s involvement potentially signaling a new phase for the iconic online travel brand.

Who's Involved and What's Happening?

According to a report by CNBC on July 3, 2025, Starboard Value—an activist hedge fund led by Jeff Smith—has purchased a yet-undisclosed but “significant” stake in Tripadvisor. Starboard has a history of pushing for change at major public companies, including Darden Restaurants and Yahoo. In a letter to Tripadvisor, Starboard urged a comprehensive review of operations, governance, and capital allocation to boost shareholder value.

Tripadvisor, founded in 2000 and headquartered in Needham, Massachusetts, operates one of the world’s most visited travel guidance platforms, featuring user-generated reviews, booking tools, and travel forums. The company has struggled to regain its pre-pandemic momentum, with stock performance trailing peers as new online travel competitors emerge.

Why is Starboard Getting Involved?

Starboard Value’s entry reflects mounting investor frustration with Tripadvisor’s financial returns and competitive positioning. The activist investor has highlighted a lagging stock price—Tripadvisor shares have underperformed the S&P 500 and leading travel stocks in recent years. In its letter to Tripadvisor’s board, Starboard called for:

A full strategic review, including potential assets sales, spinoffs, or a company sale

Evaluation of cost structures to improve margins and profitability

Improvements to user engagement, advertising offerings, and platform innovation

Jeff Smith, CEO of Starboard Value, wrote, “We believe Tripadvisor is uniquely positioned in the travel ecosystem but has consistently failed to capitalize on its iconic brand and user base.”

Tripadvisor’s Response and Industry Implications

Tripadvisor, in a statement to CNBC, confirmed it received Starboard’s letter and indicated the board would review the investor’s suggestions, saying:

“We welcome input from all shareholders and remain committed to acting in the best interests of our company and stakeholders.”

The news comes as online travel competition heats up. Expedia, Booking Holdings, and newer rivals like Airbnb and Google Travel have eroded Tripadvisor’s user base and advertising revenues. According to SimilarWeb, Tripadvisor’s share of U.S. travel site traffic dropped from 9% in 2022 to just 6% in 2025.

Industry analyst Mark Mahaney of Evercore ISI commented, “Activist intervention is not surprising given Tripadvisor’s stagnant growth and underwhelming stock performance. This could lead to major structural changes in the next year.”

What Changes Could Be on the Horizon?

Starboard’s activist campaigns have often resulted in substantial reshuffling of boards and management teams, as well as divestitures or spinoffs. For Tripadvisor, analysts speculate on possible scenarios:

Separation or sale of Viator, Tripadvisor’s fast-growing tours and experiences platform

Streamlined focus on core travel search and content

Investment in AI-driven trip planning tools and mobile applications

Possible merger or acquisition by a larger online travel firm

Tripadvisor is no stranger to restructuring; in 2020, it cut over 600 jobs to weather the pandemic’s impact. But with digital travel rebounding and consumer expectations rapidly changing, Starboard’s push may accelerate innovation—or lead to a sale.

Shareholder and Market Reaction

Shares of Tripadvisor (NASDAQ: TRIP) surged more than 10% following CNBC’s report of Starboard’s involvement, reflecting optimism that activist pressure could unlock value. Trading volumes spiked as investors bet on potential buyouts or asset sales.

Institutional investors have previously voiced concerns about Tripadvisor’s governance structure—controlling shareholder Liberty Tripadvisor Holdings owns a majority of voting shares, limiting outside influence. Whether Starboard can muster enough support to effect meaningful change remains a key question.

Activists Targeting Travel & Tech

The travel sector has seen rising activist interest in recent years, as post-pandemic shifts reshuffle winners and losers. Expedia faced agitation from hedge fund investors in 2023, resulting in a board overhaul. More broadly, the technology sector remains fertile ground for activist campaigns, given the potential for strategic overhauls or breakups to drive market value.

Tripadvisor now stands at a crossroads. As Starboard Value presses for action, analysts and shareholders will watch closely for board responses, potential asset divestitures, or even an industry merger in the months ahead.

Starboard Value’s new stake and activist campaign mark a pivotal moment for Tripadvisor, challenging the travel giant to rethink its strategy amid mounting competition and changing travel trends. How Tripadvisor’s board responds could reshape its position in the evolving online travel landscape—and provide a case study in activist investing’s rising influence on the sector.

Sources Used:

CNBC: Tripadvisor faces activist pressure from Starboard Value

SimilarWeb travel site traffic data (2022-2025)

Evercore ISI commentary (industry analyst reports)

Public filings by Tripadvisor and Liberty Tripadvisor Holdings