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Tim Cunningham
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20 years investment experience. I feel there is tremendous opportunity in China.
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    *4th quarter earnings release shows Travelzoo's hotel platform is delayed once again.

    *Revenue driving hotel platform remains in testing mode.

    *Delays are crushing revenues and stock performance.

    *Immediate sense of urgency needed.

    Travelzoo (NASDAQ:TZOO) reported a 16% decrease in revenues on 1/22/15

    as another delay in implementing their hotel platform strategy hurt revenues. The company has changed their business plan from advertising revenue and vouchers to one where they are paid for advertising and direct hotel booking platform payments. This has the potential to dramatically increase TZOO revenue as the money made with direct booking is substantial. One needs to only look at Groupon or Priceline to see how robust a direct hotel booking platform can be. Unfortunately, TZOO management has been promising rollout of the platform for several quarters while spending millions trying to get it just right. Per conference call, testing continues and they continue to be unhappy with how it is working.

    Now, shareholders and customers alike are being told millions more needs to be spent over several quarters to get the platform up and running. We have been hearing this for far too many quarters. Meanwhile, the stock continues to plunge to deep value levels, falling under $10 to 6 year lows. This stock was over $75 as recently as 2011. It is time for management of this company to either hire the best software engineer money can buy and get this thing rolled out or sell the company to someone that can. Value is being destroyed and 24 million loyal subscribers are frustrated that they cannot book and/or find the hotels they desire.

    TZOO's major advantage is that they will never recommend a hotel that management itself wouldn't stay at. Compared to the competition, this is a huge advantage. I feel the delay in getting this rolled out is allowing others to steal customers and destroy shareholder value. TZOO could easily be taken over by someone wanting into this space for $25/share and they would be getting a bargain given Travelzoo's loyal client base. It is time for management to put some urgency and perhaps deadlines in getting this implemented before investors and customers give up on Travelzoo altogether.

    Jan 28 8:52 PM | Link | Comment!
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