Travel deals site Travelzoo is seeing “unheard of” offers being promoted as the sector seeks to recover from months of Covid-19 travel restrictions.
The disclosure came as the US company, which has 31 million members worldwide including 9 million in Europe, reported an operating loss of $6.8 million for the three months to June 30.
Revenue plunged by 73% in the quarter to $7 million from $26.6 million in its second quarter a year earlier.
Europe business segment revenue fell by 79% year-on-year to $1.9 million to give an operating loss of $1.7 million an operating profit of $584,000.
Revenue in North America was down by 77% to $4.2 million to give a loss of $4.7 million against an operating profit of $3.6 million in the same period in 2019.
Global chief executive Holger Bartel said: “After adjusting our cost structure quickly in Q2, we have turned our view to the future to regain profitability as soon as Q3.
“We are already seeing irresistibly priced travel deals coming to the market, which were unheard of previously.
“Airlines, hotels, destinations and entertainment companies want travellers to come back and will need to invest in advertising.”
Looking forward, the company said: “We currently see a trend of recovery of our revenue. We have been able to reduce our operating expenses significantly.
“As a result of recovery of revenue and substantially lower operating expenses, we expect to achieve a break-even or small profit for Q3 and a[n] operating profit for Q4 2020.”
Travelzoo sold its subsidiary in Japan in June and entered a licensing agreement after discontinuing its Asia Pacific business in March.
Travelzoo acquired 60% of subscription service Jack’s Flight Club in January. The unit saw a quarterly operating loss of $615,000, with $369,000 attributable to Travelzoo.
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.