Company:TripAdvisor

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Short description: Online travel company
TripAdvisor Inc.
File:TripAdvisor logo.svg
Type of businessPublic
Traded as
FoundedFebruary 2000; 24 years ago (2000-02)
HeadquartersNeedham, Massachusetts,
U.S.
Area servedWorldwide
OwnerLiberty Tripadvisor Holdings (Liberty Media) (22.5% equity, 57% voting)
Founder(s)Stephen Kaufer
Key peopleStephen Kaufer, CEO & President
Ernst Teunissen, CFO
Greg Maffei, Chairman
IndustryTravel services
ProductsHotel and flight booking
Vacation rental
Table reservation
Guide books
RevenueIncrease $1.615 billion (2018)
Net incomeIncrease $0.113 billion (2018)
Total assetsDecrease $2.167 billion (2018)
Total equityIncrease $1.471 billion (2018)
Employees3,366 (2018)
Websitetripadvisor.com
Native client(s) oniOS, watchOS, Android, Windows, Windows Phone
[1]
TripAdvisor store at Toronto Pearson International Airport
TripAdvisor booth at ITB Berlin 2014
Headquarters in Needham, Massachusetts

TripAdvisor, Inc. is an online travel company that operates a global platform with user-generated content, price comparison tools, and online reservations for transportation, lodging, travel experiences, and restaurants.[1]

Its flagship brand, TripAdvisor.com, reached 490 million average monthly unique visitors in 2018. The website has versions in 48 markets and 28 languages worldwide. It features approximately 730 million reviews and opinions on approximately 8.1 million establishments – including 1.3 million hotels, inns, bed and breakfasts and specialty lodging, 875,000 rental properties, 4.9 million restaurants, and 1.0 million travel experiences worldwide. The company's other websites include Airfarewatchdog, Bokun.io, Bookingbuddy.com, Cruise Critic, Familyvacationcritic.com, FlipKey.com, Thefork.com (including Lafourchette.com, Eltenedor.com, and Iens.nl), Holidaylettings.co.uk, Holiday Watchdog, Housetrip.com, Jetsetter.com, Niumba.com, Onetime.com, Oyster.com, SeatGuru.com, Smartertravel.com, Tingo.com, Vacationhomerentals.com, and Viator.com.[1]

In 2018, TripAdvisor earned 37% of its revenues from Expedia Inc. and Booking Holdings and their subsidiaries, primarily for pay-per-click advertising.[1]

History

TripAdvisor was founded by Stephen Kaufer, Langley Steinert, Nick Shanny, and Thomas Palka in February 2000.[2] Kaufer said the original idea wasn't a user generated social media site to swap reviews, "We started as a site where we were focused more on those official words from guidebooks or newspapers or magazines. We also had a button in the very beginning that said, 'Visitors add your own review', and boy, did that just take off."[3] Seed money was obtained from Flagship Ventures, the Bollard Group, and private investors.[4]

In 2004, the company was acquired by IAC/InterActiveCorp.[5]

In August 2005, IAC spun off its travel group of businesses under the Expedia, Inc. name.[6]

In April 2009, TripAdvisor launched in China.[7]

In September 2010, SmarterTravel, part of TripAdvisor Media Group, launched SniqueAway (now Jetsetter), the first members-only site where each travel deal is endorsed by member reviews.[8]

In April 2011, Expedia, then led by Dara Khosrowshahi, announced that it would split into two publicly traded companies by spinning off TripAdvisor.[9] The corporate spin-off was completed in December 2011.[10][11]

In November 2018, the company added DoorDash to its restaurant listings.[12]

Acquisitions

In May 2007, the company acquired Smarter Travel Media, operator of SmarterTravel.com, BookingBuddy.com, SeatGuru.com, TravelPod.com, and Travel-Library.com.[13]

Also in May 2007, the company acquired The Independent Traveler, Inc., publisher of Cruise Critic and IndependentTraveler.com.[14]

In February 2008, the company acquired Holiday Watchdog, user-generated travel site in the U.K.[15][16]

In April 2008, the company acquired Airfarewatchdog.[17]

In July 2008, the company acquired Virtualtourist, a travel website with reportedly about one million registered members and OneTime.com, a travel comparison site.[18]

In July 2008, the company acquired a majority stake in FlipKey.com, a vacation-rental website.[19]

In October 2009, the company acquired Kuxun.cn, China’s second-largest consumer travel site and hotel and flight search engine.[20] Kuxun was later sold to Meituan.[21]

In June 2010, the company acquired holidaylettings.co.uk, the United Kingdom's largest independent vacation rental website.[22]

In July 2011, the company acquired Where I've Been, a Chicago-based Facebook app.[23]

In October 2012, the company acquired Wanderfly, an NYC-based travel inspiration website for an undisclosed sum.[24][25]

In April 2013, the company acquired Jetsetter, an NYC flash sale site.[26]

In June 2013, the company acquired GateGuru, an NYC-based flight and airport information mobile app for an undisclosed sum.[27][28]

In October 2013, the company acquired Oyster.com, a hotel review and photography website.[29]

In May 2014, the company acquired Vacation Home Rentals and Tripod.[30]

In May 2014, the company acquired LaFourchette for $140 million.[31][32]

In August 2014, the company acquired Viator for $200 million.[33][34]

In October 2014, the company acquired Mytable and Restopolis.[35]

In January 2015, the company announced the acquisition of Iens, a Dutch restaurant review website, and SeatMe, a Dutch table reservation website.[36][37][38]

In April 2015, the company acquired Portuguese startup BestTables.[39][40]

In May 2015, the company acquired Australian startup Dimmi for $25 million.[41][42]

In August 2016, TripAdvisor acquired New York City startup Citymaps.com, which developed a social mapping site and cross-platform map engine based on OpenStreetMap data.[43][44][45]

In October 2016, the company acquired Couverts, a Dutch table reservation website.[46]

In April 2018, the company acquired Icelandic startup Bokun, a provider of software for travel booking.[47][48][49]

Controversies

Data breach

In March 2011, TripAdvisor informed its members that it suffered a data breach and an unauthorized party had stolen some of its email list and might use it for spamming. No passwords or other information was stolen.[50]

Drip pricing

In July 2012, TripAdvisor was fined $80,000 by the United States Department of Transportation for violating fair trading regulations requiring taxes and fees to be shown for prices quoted for airfares. The rule had come into effect in January of that year.[51]

Criticism of reviews

TripAdvisor has been the subject of controversy for allowing unsubstantiated anonymous reviews to be posted about any hotel, bed and breakfast, inn, or restaurant.[52]

Approximately 30 hotels have been banned from the website by the company for suspicious reviews, including a Cornwall hotel that bribed guests to leave positive reviews of the hotel.[53]

TripAdvisor has stated that reviews are subject to a verification process which considers the IP address and email address of the author, and tries to detect any suspicious patterns or obscene or abusive language.[54] The website also allows the community of users to report suspicious content, which is then assessed by Tripadvisor staff.[55]

In September 2011, after receiving a complaint submitted by online investigations company KwikChex, the UK Advertising Standards Authority (ASA) launched a formal investigation into TripAdvisor's claims to provide trustworthy and honest reviews from travelers.[56] The ASA found that TripAdvisor "should not claim or imply that all its reviews were from real travellers, or were honest, real or trusted",[57] and as a result of the investigation, TripAdvisor was ordered to remove the slogan "reviews you can trust" from its UK web site.[58] It changed its hotel review section slogan to "reviews from our community". TripAdvisor stated that the branding change had been planned for some time and that changes began in June 2011, before the ASA investigation.[59] ASA commented that "it was concerned that consumers might be fooled by fraudulent posts since the entries could be made without any form of verification," but recognized that TripAdvisor used "advanced and highly effective fraud systems" in an attempt to identify and remove fake content.[60]

In 2012, an action was brought in a Sheriff Court in Scotland, by Richard Gollin, the owner of a guesthouse in the Outer Hebrides who claimed damages for malicious statements. TripAdvisor asserted that the Scottish courts lacked jurisdiction.[61] The outcome of this case was called a "landmark victory". TripAdvisor conceded that it could be sued in the UK's jurisdictions (having previously claimed to be outside the remit of Scots law because it is based in Massachusetts). The court ruled that TripAdvisor's terms of use constituted a contract, which was actionable/enforceable by the business being reviewed. The case was found to involve issues relating to the Unfair Terms in Consumer Contracts Act of 1977, and these issues were referred to a higher court in Stornoway.[62] The plaintiff eventually dropped the case because he could not afford to pursue it.[63]

In May 2013, a fake restaurant was set up by a disgruntled businessman and reportedly had diners looking for the eatery in an alley filled with garbage cans. The fake listing went undetected on TripAdvisor for about two months.[64]

In August 2013, Kenneth Seaton lost a $10 million lawsuit against the company in which he claimed that the ranking for his Grand Resort Hotel and Convention Center in Pigeon Forge, Tennessee, as "America’s dirtiest hotel" was based on unsubstantiated rumors.[65][66][67]

In March 2014, TripAdvisor's Chinese site came under scrutiny when a user was found to have reviewed 51 Parisian restaurants in one month, while also reviewing 50 hotels in other countries.[68]

In December 2014, the Italian Antitrust Authority fined TripAdvisor €500,000 for improper commercial practices on the TripAdvisor website.[69][70][71] The Italian Authority stated that Tripadvisor and its Italian arm should stop publishing misleading information about the sources of the reviews. In June 2015, a fake restaurant created by a newspaper rose to the top of the site's rankings in Italy.[72]

In March 2015, Dietmar Doering, a German hotelier based in Sri Lanka accused TripAdvisor of hosting malicious reviews of his resort The Cosy Beach in Marawila. He claimed he was compelled to take legal action for the estimated damages of US$500,000.[73]

In October 2015, an ex-hotel manager at Australian property manager Meriton said that guests were offered inducements to change ratings they left on the site.[74] In 2018, Meriton was fined AU$3 million by the Australian Competition and Consumer Commission for misleading consumers.[75][76][77]

In November 2017, it was reported that TripAdvisor deleted numerous reviews which contained allegations of serious criminal activity at resorts in Playa del Carmen, Yucatán Peninsula, Mexico.[78][79] The deleted reviews included those from two women who were raped at the Iberostar Paraiso Maya in separate incidents 2010 and 2015, one of which involved a hotel security guard. The women said they received assurances from hotel staff that they would help out and contact the authorities, but the staff failed to take any follow-up action. The women then posted advisories and warnings on TripAdvisor, but the reviews were deleted. The review of first victim, Kristie Love, was eventually reinstated, but the company claimed that the review of the second victim, Jamie Valeri, was "hearsay" and it was not reinstated. The reports also highlighted at least 12 other such incidents at hotels and resorts across Mexico, including one of a 29-year-old man who was raped by a massage therapist at a resort in the same area, where reviewers had attempted to warn people through reviews on the company's site about criminal incidents that the resorts and local authorities had failed to pursue any criminal or legal action for, only to have those reviews either taken down or declined for posting by TripAdvisor.[80]

In November 2017, Oobah Butler, a journalist for Vice Media, who had claimed to post positive reviews for restaurants he never visited in exchange for payment, used fake reviews to boost a nonexistent restaurant named The Shed at Dulwich to the top of Tripadvisor rankings for restaurants in London.[81][82][83][84][85]

In September 2019, consumer organisation Which? said that TripAdvisor was still failing to stop fake reviews. Its survey of nearly 250,000 reviews for the 10 top-ranked hotels in 10 popular tourist destinations around the world found that one in seven had "blatant hallmarks" of fake positive reviews. Tripadvisor responded that "We are committed to ensuring reviews on TripAdvisor offer useful and accurate information, and we are very aggressive in catching fake reviews and pursuing the fraudsters behind them."[86]

Awards

In 2019, TripAdvisor was named America's Best Midsize Employer by Forbes .[87]

References

  1. ↑ 1.0 1.1 1.2 1.3 "TripAdvisor Inc. 2018 Form 10-K Annual Report". U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1526520/000156459019003889/trip-10k_20181231.htm. 
  2. ↑ Morris, Cheryl (November 2, 2010). "Boston Tech-Mafia Mondays: TripAdvisor—Pioneers in Online Travel". Advance. https://www.americaninno.com/boston/boston-tech-mafia-mondays-tripadvisor-pioneers-in-online-travel/. 
  3. ↑ "Interview with Stephen Kaufer". BBC News. October 16, 2014. http://www.bbc.co.uk/programmes/b04l3cmq. 
  4. ↑ "TripAdvisor". Built In Boston. https://www.builtinboston.com/company/tripadvisor. 
  5. ↑ Schaal, Dennis (2016). "The Definitive oral history of online travel". Skift. https://skift.com/history-of-online-travel/. 
  6. ↑ "IAC Completes Spin-Off of Expedia, Inc" (Press release). Expedia, Inc. August 9, 2005.
  7. ↑ Canaves, Sky (May 27, 2010). "Expedia Charts Local Path in China". The Wall Street Journal. https://www.wsj.com/articles/SB10001424052748704032704575268273449214334. 
  8. ↑ "TripAdvisor Media Group Launches SniqueAway" (Press release). PR Newswire. September 7, 2010.
  9. ↑ "Expedia plans to split into two companies". Reuters. April 8, 2011. https://www.reuters.com/article/2011/04/08/uk-expedia-idUSLNE73700O20110408. 
  10. ↑ "Expedia, Inc. Completes Spin-off of TripAdvisor, Inc" (Press release). PR Newswire. December 20, 2011.
  11. ↑ "A weak Wall Street welcome for Newton-based TripAdvisor—Business". The Boston Globe. December 22, 2011. https://www.bostonglobe.com/business/2011/12/22/tripadvisor-makes-rocky-debut-wall-street/8hzGHDB5yWPmsge8fp6StI/story.html. 
  12. ↑ SAWERS, PAUL (November 28, 2018). "DoorDash food deliveries are now available through TripAdvisor". VentureBeat. https://venturebeat.com/2018/11/28/doordash-food-deliveries-are-now-available-through-tripadvisor/. 
  13. ↑ Schaal, Dennis (April 16, 2007). "TripAdvisor quietly acquires SeatGuru, Smarter Travel Media". Travel Weekly. https://www.travelweekly.com/Travel-News/Online-Travel/TripAdvisor-quietly-acquires-SeatGuru-Smarter-Travel-Media. 
  14. ↑ Schaal, Dennis (May 28, 2007). "TripAdvisor acquires the publisher of Cruise Critic". Travel Weekly. https://www.travelweekly.com/Travel-News/Online-Travel/TripAdvisor-acquires-the-publisher-of-Cruise-Critic. 
  15. ↑ Zacks, Rebecca (February 14, 2008). "TripAdvisor Acquires Holiday Watchdog". Xconomy. https://xconomy.com/boston/2008/02/14/tripadvisor-acquires-holiday-watchdog/. 
  16. ↑ Butcher, Mike (February 15, 2018). "TripAdvisor buys Holiday Watchdog, reviews site M&A begins". TechCrunch. https://techcrunch.com/2008/02/15/tripadvisor-buys-holiday-watchdog-reviews-site-ma-begins/. 
  17. ↑ "Smarter Travel Media Buys Airfarewatchdog For Undisclosed Terms - Quick Facts". RTTNews. April 2, 2008. https://www.rttnews.com/569123/smarter-travel-media-buys-airfarewatchdog-for-undisclosed-terms-quick-facts.aspx. 
  18. ↑ Weisenthal, Joseph (July 1, 2008). "TripAdvisor Acquires Virtual Tourist And Online Booker OneTime". CBS News. https://www.cbsnews.com/news/tripadvisor-acquires-virtual-tourist-and-online-booker-onetime/. 
  19. ↑ Roush, Wade (August 21, 2008). "TripAdvisor Takes FlipKey Majority Stake". Xconomy. https://xconomy.com/boston/2008/08/21/tripadvisor-takes-flipkey-majority-stake/. 
  20. ↑ HERNANDEZ, BARBARA (October 31, 2009). "TripAdvisor Expands to China with Kuxun". CBS News. https://www.cbsnews.com/news/tripadvisor-expands-to-china-with-kuxun/. 
  21. ↑ May, Kevin (August 18, 2015). "TripAdvisor sells Kuxun brand and revises China strategy". PhocusWire. https://www.phocuswire.com/TripAdvisor-sells-Kuxun-brand-and-revises-China-strategy. 
  22. ↑ "TripAdvisor Acquires Holiday Lettings, the U.K.'s Largest Independent Vacation Rental Website" (Press release). PR Newswire. June 24, 2010.
  23. ↑ "TripAdvisor acquires Where I've Been" (Press release). PR Newswire. July 11, 2011.
  24. ↑ "TripAdvisor Acquires Wanderfly" (Press release). PR Newswire. October 2, 2012.
  25. ↑ Seiffert, Don (October 2, 2012). "TripAdvisor snaps up Wanderfly". American City Business Journals. https://www.bizjournals.com/boston/blog/mass-high-tech/2012/10/tripadvisor-snaps-up-wanderfly.html. 
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  27. ↑ TSURUOKA, DOUG (June 19, 2013). "TripAdvisor Buys Mobile Flight App Provider GateGuru". Investor's Business Daily. https://www.investors.com/news/technology/gateguru-acquisition-adds-to-trip-flight-tools/. 
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  29. ↑ Ali, Rafat (October 15, 2013). "Tripadvisor Acquires Another Dying Travel Startup: Oyster.com". Skift. https://skift.com/2013/10/15/tripadvisor-acquires-anyone-dying-travel-startup-oyster-com/. 
  30. ↑ Schaal, Dennis (May 1, 2014). "TripAdvisor Acquires VacationHomeRentals.com as it Tries to Catch HomeAway". Skift. https://skift.com/2014/05/01/tripadvisor-acquires-vacationhomerentals-com-as-it-tries-to-catch-homeaway/. 
  31. ↑ "Why Online Travel Companies Are Buying Restaurant Reservation Operators". Forbes. June 23, 2014. https://www.forbes.com/sites/greatspeculations/2014/06/23/why-online-travel-companies-are-buying-restaurant-reservation-operators/. 
  32. ↑ O'Hear, Steve; Dillet, Romain (May 7, 2014). "Restaurant Reservation Service LaFourchette Gobbled Up By TripAdvisor For ~$140M". TechCrunch. https://techcrunch.com/2014/05/07/lafourchette-gobbled-up-by-tripadvisor/. 
  33. ↑ Schaal, Dennis (August 11, 2014). "TripAdvisor Completes $200 Million Acquisition of Viator". Skift. https://skift.com/2014/08/11/tripadvisor-completes-200-million-acquisition-of-viator/. 
  34. ↑ Chowdhry, Amit (July 25, 2014). "Travel Site TripAdvisor To Acquire Viator For Approximately $200M". Forbes. https://www.forbes.com/sites/amitchowdhry/2014/07/25/travel-site-tripadvisor-to-acquire-viator-for-approximately-200m/. 
  35. ↑ "TripAdvisor's Growth Plans For 2015 And Beyond". Forbes. March 6, 2015. https://www.forbes.com/sites/greatspeculations/2015/03/06/tripadvisors-growth-plans-for-2015-and-beyond/. 
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  38. ↑ Schaal, Dennis (January 8, 2015). "TripAdvisor Goes on a Dining Reservations Binge With Acquisition of Iens". Skift. https://skift.com/2015/01/08/tripadvisor-goes-on-a-dining-reservations-binge-with-acquisition-of-iens/. 
  39. ↑ "TripAdvisor comprou uma startup portuguesa. A BestTables". http://observador.pt/2015/04/09/tripadvisor-compra-portuguesa-best-tables-nao-mexer/. 
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  41. ↑ Redrup, Yolanda (May 20, 2015). "TripAdvisor acquires Australian restaurant bookings site Dimmi". Sydney Morning Herald. https://www.smh.com.au/business/tripadvisor-acquires-australian-restaurant-bookings-site-dimmi-20150520-gh5i29.html. 
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  44. ↑ O'Neil, Sean (August 24, 2016). "TripAdvisor acquires Citymaps, a social mapping startup". PhocusWire. https://www.phocuswire.com/TripAdvisor-acquires-Citymaps-a-social-mapping-startup. 
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  46. ↑ "Reserveersite Couverts overgenomen door IENS". October 27, 2016. https://www.nu.nl/economie/4341856/reserveersite-couverts-overgenomen-iens.html. 
  47. ↑ Menze, Jill (April 20, 2018). "TripAdvisor buys Bokun, says it "solves the supply problem"". PhocusWire. https://www.phocuswire.com/TripAdvisor-Experiences-2018-April. 
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  72. ↑ Fenton, Siobhan (June 30, 2015). "TripAdvisor denies rating system is flawed, after fake restaurant tops rankings in Italy". The Independent. https://www.independent.co.uk/life-style/gadgets-and-tech/news/tripadvisor-denies-rating-system-is-flawed-after-fake-restaurant-tops-rankings-in-italy-10354818.html. 
  73. ↑ Kanagasingam, Rajkumar (March 27, 2015). "TripAdvisor’s misleading reviews damage Sri Lankan resort’s global image". Daily FT. http://www.ft.lk/travel-tourism/tripadvisors-misleading-reviews-damage-sri-lankan-resorts-global-image/27-399769. 
  74. ↑ Lewis, David (October 21, 2015). "Meriton allegedly prevents guests from giving negative reviews, bribes them to improve ratings on TripAdvisor". ABC News. https://www.abc.net.au/news/2015-10-21/meriton-apartments-allegedly-cheating-tripadvisor-system/6870256. 
  75. ↑ "Meriton fined $3m for manipulating TripAdvisor hotel reviews". Associated Press. The Guardian. July 31, 2018. https://www.theguardian.com/travel/2018/jul/31/meriton-fined-3m-for-manipulating-tripadvisor-hotel-reviews. 
  76. ↑ Williams, David (July 31, 2018). "Australian hotel chain fined $2.2 million for manipulating TripAdvisor reviews". CNN. https://www.cnn.com/travel/article/australia-tripadvisor-hotel-fined-trnd/index.html. 
  77. ↑ "Meriton to pay $3 million for misleading consumers on TripAdvisor" (Press release). Australian Competition and Consumer Commission. July 31, 2018.
  78. ↑ "Tourists: TripAdvisor removed Mexico resorts warnings". Milwaukee Journal Sentinel. November 1, 2017. https://www.jsonline.com/story/news/investigations/2017/11/01/tripadvisor-removed-warnings-rapes-and-injuries-mexico-resorts-tourists-say/817172001/. 
  79. ↑ DOKOUPIL, TONY (November 2, 2017). "TripAdvisor accused of deleting reviews that raised red flags". CBS News. https://www.cbsnews.com/news/tripadvisor-accused-of-deleting-reviews-that-raised-red-flags/. 
  80. ↑ Schwartz, Karen (November 14, 2017). "New TripAdvisor Warnings on Sexual Assault Draw Criticism". The New York Times. https://www.nytimes.com/2017/11/14/travel/tripadvisor-warnings-criticism.html. 
  81. ↑ GRAFTON-GREEN, PATRICK (December 6, 2017). "Writer 'tricks' TripAdvisor into making his shed top London restaurant". The Evening Standard. https://www.standard.co.uk/news/london/dulwich-shed-becomes-tripadvisors-number-one-ranked-restaurant-in-london-after-fake-reviews-a3712606.html. 
  82. ↑ Low, Valentine (December 7, 2017). "Prankster Oobah Butler tricks TripAdvisor into thinking his shed is London’s best restaurant". The Times. https://www.thetimes.co.uk/article/prankster-oobah-butler-cooks-up-top-restaurant-the-shed-at-dulwich-fx6hfwj89. 
  83. ↑ "The Shed At Dulwich". Vice. https://www.vice.com/en_au/topic/the-shed-at-dulwich. 
  84. ↑ McGrath, Katherine (December 15, 2017). "How a Fake Restaurant in a Garden Shed Became London's Top-Rated Eatery on TripAdvisor". Architectural Digest. https://www.architecturaldigest.com/story/the-shed-at-dulwich. 
  85. ↑ Butler, Oobah (December 6, 2017). "I Made My Shed the Top-Rated Restaurant on TripAdvisor". Vice. https://www.vice.com/en_us/article/434gqw/i-made-my-shed-the-top-rated-restaurant-on-tripadvisor. 
  86. ↑ "TripAdvisor is failing to stop fake hotel reviews, says Which?". The Guardian. September 6, 2019. https://www.theguardian.com/travel/2019/sep/06/tripadvisor-failing-to-stop-fake-hotel-reviews-which. 
  87. ↑ Valet, Vicky (April 17, 2019). "Best Midsize Employer". Forbes. https://www.forbes.com/sites/vickyvalet/2019/04/17/americas-best-midsize-employers-2019/. 

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