Why Does Travelzoo Have a Big China Problem?
Skift Take
The company has been hoping for a turnaround in Asia Pacific for years now, but so far business in the region is weak. If trade tensions continue to squeeze the company, will progress get even slower?
Travelzoo is setting investors at ease with a jump in profits, even as global trade tensions aggravate business in Asia.
Gains in North America and Europe in the fourth quarter drove an increase in the stock price of the deals marketer on Wednesday, but ongoing losses in the Asia Pacific region dragged overall revenue down. In particular, the vacation package site suffered a nearly 30 percent loss in revenue in China, due in part to staffing issues and the ongoing U.S.-China trade war. The region has been a source of losses for the company for over three years.
"I would say the only area where we see a significant decrease in travel is in China, consistent with what we have heard
