Travelzoo has decided to exit its business in the Asia Pacific this week.
In a release, the OTA said its Asia-Pacific business has incurred losses for several years.
“In our communications to investors over the last two years, we have consistently explained we will exit Asia Pacific if we cannot create shareholder value from this business activity by 2020,” Holger Bartel, Travelzoo’s global CEO said.
“Unfortunately, the uncertainty about economies in Asia Pacific does not, in our opinion, allow us currently to deliver the shareholder value within the promised timeline and without further operating losses from this segment.
“We do not expect this exit to have any negative impact on our continued business.”
Bartel said the company will now focus on its “very profitable” businesses in North America and Europe.
“The Asia-Pacific exit will also allow us to concentrate on the introduction of the recently acquired and profitable Jack’s Flight Club subscription service to Travelzoo members,” he said.
In 2019, Asia Pacific accounted for 5.7 per cent of Travelzoo’s global revenue. In the same period, Travelzoo’s loss per share from Asia Pacific was -$0.67, offsetting most of the positive contribution of earnings per share (EPS) of $1.01 from North America and Europe.
As a result of the discontinuation of the Asia Pacific business segment, Travelzoo expects its EPS to increase by approximately 200 per cent this year.
The company’s Australian arm has been led by Jacqui Timmins for the past two-and-a-half years.
Travel Weekly understands the decision to axe Travelzoo’s APAC arm was made by the global team and did not involve Timmins.
