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Should Travelzoo mull its strategic options?


Skift Take

The article author, ChaPaVe Partners, has an ulterior motive, but some of the points about Travelzoo's cozy relationships and being "too little too late" in looking to acquire a hotel-booking site may have some validity.

We have written extensively about the Travelzoo (TZOO) saga and were bullish on the name a year ago when strategic moves could have enhanced shareholder value and catapulted the company to the next level. Our most recent article "Travelzoo: The Emperor Needs New Clothes" suggested that investors avoid the stock.

On October 12, in a rare move showing TZOO's possible new direction to financial transparency, the company issued a press release outlining a miss on analysts' projected Q3 revenue and earnings. The stock dropped nearly 15% as a result.

Chris Loughlin, TZOO's current CEO, reiterated his belief in the company's strategy. This is hard for us to believe given his track record.

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