Skift Take
Travelzoo is looking to maintain fixed costs at a relatively low level as it pursues increasing the brand's presence in regional markets in Asia Pacific and elsewhere through licensing deals.
Travelzoo generated very modest revenue in the first quarter from licensing agreements it reached in Japan and Australia in 2020, but it sees substantial upside in seeking additional arrangements where it grants exclusive licenses for its brand, business model and member base.
“You see it in the numbers and the improved operating margin for the business as a whole; operating these regions as licensed businesses rather than company-owned, so to speak, is much more attractive for us," CEO Holger Bartel told financial analysts in discussing the company's first quarter results earlier this week. "And we are looking to see if there are some other markets or countries or regions where we can replicate that model.”
In 2020, Travelzoo reached a licensing agreement in Australia granting exclusive rights to use the Travelzoo brand in that country, as well as i