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These 2 Factors Can Trigger Changes In Travelzoo's Price Estimates

Travelzoo (NASDAQ:TZOO) is a global player in the Internet media domain with a subscriber base of 27 million. Travelzoo's platform provides travel, entertainment and local deals from thousands of companies. The company has been under-performing in its Search and Local deals division for the last two years. The Search division has been lagging behind due to intense competition in the segment. The Local Deals division, which is mostly conducted through a voucher program, is facing waning demand due to the complex and inflexible process in place to book and redeem them.

To address these issues, the company increased product and marketing related investments and re-positioned itself to better face changing market demands. The company developed a new hotel booking website (which is currently in the beta version) and re-positioned itself from a discount offer dealer to selling packages based on client needs. It is reducing its focus on the Search segment while still maintaining the division. Read more