Here Are Some Of Travelzoo’s Initiatives That Might Help Recover Its Revenue Growth Next Year

October 31st, 2017 by Trefis Team
-26.89%
Downside
9.33
Market
6.82
Trefis
TZOO: Travelzoo logo
TZOO
Travelzoo

Travelzoo (NASDAQ: TZOO) has yet again presented a weak quarter in Q3 2017. The company has been struggling with its performance for almost three years now. The introduction of its hotel booking platform in 2014, and subsequently attempting to make it the focus of its business while gradually reducing the stress on the local deals and search segments, seems to have still not worked well enough for the company. However, the company is currently undertaking several initiatives to turn things around. It aims to witness revenue growth by Q1 2018 and improve even further as the year progresses. We have an $8.50 price estimate for Travelzoo’s stock, which is around 19% higher than the current market price. Even though it made some good progress in North America in the second quarter, those results seem to have been undone by natural calamities impacting the region in Q3. The management is focusing on top line growth in Q1 2018 and these initiatives might finally be able to reap benefits for Travelzoo.

Travelzoo’s Current Strategies To Make A Turnaround By Next Year

  • Currently, Travelzoo is focusing the most on its European markets.
  • It is working on technology that will better help gauge the member usage behavior. The company will work more aggressively towards more member acquisition once this technology is in place by the next six months.
  • A focus on the area of hotel bookings and vacation packaged bookings. The company is also looking for acquisition targets to strengthen its offerings in the packaged booking segment.
  • Getaways deals contribution to the business has declined and gradually it will be replaced by offerings from the hotel booking platform.
  • Though its performance in Asia Pacific was weaker than expected, the company is gearing up for significant improvement and a considerable chunk of revenue coming from that region in the future. It has recently appointed General Managers for each of its Australia and Hong Kong businesses.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Travelzoo
Relevant Articles
  1. Why Did Travelzoo’s Stock Grow Despite Only Modest Revenue Growth?
  2. Could Travelzoo’s Stock Rise By 50% Post COVID-19 Crisis?
  3. How Does Travelzoo Make Money?
  4. Why Has Travelzoo’s Stock Price See-Sawed So Much Since Early 2018?
  5. Can Travelzoo End Fiscal 2018 On a Strong Note?
  6. What Is TripAdvisor’s Revenue And EBITDA Breakdown?

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology