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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Tags: mergers, Travelzoo

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