Travelzoo’s Daily Deals Service Is Doing Very Well
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
Travelzoo Inc. (NASDAQ:TZOO) launched a daily deals feature that competes with Groupon about five months ago. Travelzoo’s already had about 21 million subscribers so they decided to start sending them daily deals. At first it started with local daily deals in Des Moines and Minneapolis, but they quickly expanded to 25 markets.
When Travelzoo’s deals launched in New York City, it outsold every deal Groupon had ever run there. Travelzoo recently expanded internationally when they launched a spa deal in London. Ever since launching the daily deals feature, Travelzoo’s stock grew 200% in the last 4 months. Travelzoo had a market valuation of $250 million in August. Now their market valuation is at around $750 million.