Travelzoo Subscribers in Europe Rapidly Adopt Local Deals: Sales Triple in the First Half of Q2

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May 16, 2011, 02:46 ET

LONDON, May 16, 2011 /PRNewswire/ -- Travelzoo Inc. (NASDAQ: TZOO), a global Internet media company, today announced that its European subscribers bought $3.4 million in Local Deals during the first 45 days of the second quarter, up 196% from the first 45 days in the first quarter of 2011. Gross sales of Local Deals in Europe, halfway through the second quarter, are only $400,000 shy of the total gross revenues for the entire first quarter.

"We are pleased to see the rapid adoption of Local Deals among our European subscribers," said Chris Loughlin, Chief Executive Officer. "We see this as a clear validation of our international strategy, in that we can quickly take a product that is already very successful in North America and rapidly roll it out into other markets where we already have a large subscriber base."

Travelzoo has published 78 deals in Europe so far this quarter, generating average gross revenue of $43,600 per deal, well ahead of Travelzoo's average gross revenue per deal of $34,000 in Q1. Two deals in Europe in recent weeks each yielded more than $225,000 in gross revenue: A dining experience at Gordon Ramsay's Maze in London, which holds a Michelin-star rating, sold 2,916 covers, and a getaway at a 4-star Berlin hotel generated 2,379 room nights.

Travelzoo's fastest growing European Local Deals market is now Germany, where gross Local Deals revenue through 15 May was $810,000. This is up from $10,000 during the same period in the first quarter and 500% ahead of the full first quarter gross revenues of $130,000. The UK continues to be Travelzoo's largest Local Deals market in Europe, generating $2.2 million in gross revenue in the second quarter to 15 May, up 94% when compared to the first half of Q1. France and Spain are also trading well in excess of 100% ahead of Q1 on a like-for-like basis.

Glen Drury, Senior Vice President of Local Deals in Europe commented, "The recent results in London and Berlin were outstanding, but we are seeing similar results across the region. For example, a deal at the trendy Ice Bar on Montmartre in Paris just took 850 covers in 5 days. While it is very exciting to see these big cities light up, we are also very impressed with the response we are seeing in markets like Chester, Kent, Ludlow, Leipzig, Mainz and other lesser known cities across Europe."

As more and more Travelzoo subscribers start to enjoy their local experiences, merchants are commenting on the quality of Travelzoo's subscriber base and Travelzoo's quality leadership position in the local deals market. Ms. Cat Spencer, Head of Marketing at the Albannach, a high-end restaurant in Trafalgar Square, which received more than 1,000 covers from Travelzoo, said, "Travelzoo has been the best marketing campaign we have run in the past year. Not only did it drive covers through the door, but guests tended to spend more." Calum Colquhoun, General Manager, De Vere Daresbury Park near Manchester also commented, "We have used other companies to sell similar local promotions and only received a fraction of the sales. Added to that, the whole process was very easy for us and for the customers who booked."

Travelzoo has now published Local Deals in 28 markets across Europe as well as an additional 10 deals in getaway destinations such as Ireland, Morocco, Cote d'Azur and Biarritz.

To view the latest Local Deals from Travelzoo, visit www.travelzoo.co.uk, www.travelzoo.de, www.travelzoo.fr or www.travelzoo.es and click on Local Deals.

About Travelzoo

Travelzoo Inc. is a global Internet media company. With more than 23 million subscribers in North America, Europe, and Asia Pacific and 23 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo's deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.

Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words "expect", "predict", "project", "anticipate", "believe", "estimate", "intend", "plan", "seek" and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo. All other names are trademarks and/or registered trademarks of their respective owners.

Media contact:
Louise Hodges
+44 (0)207 420 0426
[email protected]

SOURCE Travelzoo