Sep 24, 2020
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How Does Travelzoo Make Money?

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Travelzoo (NASDAQ: TZOO) is a worldwide Internet media company which publishes travel and leisure deals to greater than 28 million subscribers worldwide. The corporate s Travel business which makes revenues by listing fees paid by travel businesses (hotels airlines travel companies) to advertise their offers is predicted to contribute $95 million to Travelzoo s 2019 revenues making up 84% of the corporate s $114 million in revenues for 2019

 

The Local Deals and Entertainment segment constitutes around 16% of the entire revenues consisting of fees paid by entertainment and native businesses to advertise on Travelzoo. Travel revenues remained flat and Local revenues have declined within the Asia Pacific region since the last 2 years. Going forward Travelzoo plans to continue investing as well as increasing its marketing spend within the Asia-Pacific region

 

Hence the corporate has launched a project called Asia-Pacific 2020. Under the project the corporate will assemble a team of experienced executives from Travelzoo s key functions in Europe and North America with strong knowledge of its business. Moreover Travelzoo believes that there is a significant opportunity to grow its member base which it plans to accomplish by investing in marketing and strategic partnerships

 

We expect this technique to reap strong results for the corporate and drive value within the near term. We have created an interactive dashboard on Travelzoo Revenues: How Does It Make Money? where we discuss Travelzoo s business model followed by sections that review past performance and 2020 expectations for the corporate s revenue drivers and competitive comparisons with TripAdvisor and Booking Holdings

 

Travelzoo s Total Revenue declined 3% from $114 million in 2016 to just about $111 million in 2018 however this is expected to grow over 5% to around $117 million in 2 years TREFIS Travelzoo has lost $3 million to its revenue over the past two years. However we expect increasing sales from both its Travel and Local Deals divisions to likely add $3 million in revenue over the subsequent two years

 

Revenue from Travel to increase 3% (about $3. 1 million) within the next two years with its share of Total Revenue expected to be about 83% by 2020 Overall Travel almost remained flat within the last two years at $94. 4 million in 2018 driven by a decline in advertising spend in Travelzoo s Asia-Pacific region

 

This trend in other geographic regions has also been unpredictable with revenues swinging considerably from one period to the next. We expect revenue to grow by 3% within the next two years to about $97. 4 million in 2020 driven by the corporate s initiatives to revive its Asia Pacific region revenues

 

The corporate s management has hired a consulting firm in China to revive its Asia Pacific operations. Travel sales contributed 85% of total revenue in 2018. This share is predicted to go right down to 83% in 2020. PROMOTED UNICEF USA BRANDVOICE | Paid Program
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9 million) within the next two years with its share of Total Revenue expected to be about 17% by 2020 Segment revenue declined from $20. 1 million in 2016 to $17 million in 2018 due to a fall within the markets covered under local deals. For this reason vouchers sold declined over this period

 

We expect revenue to grow by about 17% within the next two years to about $19. 8 million in 2020. Local Deals and Entertainment sales contributed 15% of total revenue in 2018. This share is predicted to go as much as 17% by 2020. What s behind Trefis? See How It s Powering New Collaboration and What-Ifs For CFOs and Finance Teams| Product R&D and Marketing Teams More Trefis Data Like our charts? Explore example interactive dashboards and create your own

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