Related Party Transactions

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 14: RELATED PARTY TRANSACTIONS

Expedia

Subsequent to the Spin-Off, we remained a related party with Expedia due to common ownership or Liberty Interactive Corporation’s ownership of Expedia stock, as applicable, and continue to work together pursuant to various commercial agreements between subsidiaries of TripAdvisor, on the one hand, and subsidiaries of Expedia, on the other hand.

Related-party revenue from Expedia was $54.3 million and $114.8 million for the three and six months ended June 30, 2013, respectively, and was $55.7 million and $107.3 million for the three and six months ended June 30, 2012, respectively, which primarily consists of click-based advertising and other advertising services provided to Expedia and its subsidiaries and is recorded at contract value, which we believe is a reasonable reflection of the value of the services provided. Related-party revenue represented 22.0% and 24.1% of our total revenue for the three and six months ended June 30, 2013, respectively, and 28.3% and 28.2% of our total revenue for the three and six months ended June 30, 2012, respectively. Other related-party operating expenses which were included within selling and marketing expense were $1.4 million and $3.2 million for the three and six months ended June 30, 2013, respectively, and were $1.8 million and $3.5 million for the three and six months ended June 30, 2012, respectively, which primarily consisted of marketing expense for exit windows. The net related party receivable balances with Expedia reflected in our consolidated balance sheets as of June 30, 2013 and December 31, 2012 were $35.2 million and $24.0 million, respectively.

Liberty Interactive Corporation

As of June 30, 2013, Liberty Interactive Corporation, or Liberty, beneficially owned 18,159,752 shares of our common stock and 12,799,999 shares of our Class B common stock, which shares constitute 13.9% of the outstanding shares of common stock and 100% of the outstanding shares of Class B Common Stock. Assuming the conversion of all of the Liberty’s shares of Class B common stock into common stock, Liberty would beneficially own 21.6% of the outstanding common stock (calculated in accordance with Rule 13d-3). Because each share of Class B common stock generally is entitled to ten votes per share and each share of common stock is entitled to one vote per share, Liberty may be deemed to beneficially own equity securities representing approximately 56.5% of our voting power as of June 30, 2013.

We had no related party transactions with Liberty during the six months ended June 30, 2013 and 2012, respectively.