Travelzoo (NASDAQ:TZOO) Q4 2022 Earnings Call Transcript

Holger Bartel: Look, it’s mostly about better explaining the value that our membership is offering to consumers. We haven’t done that so well over the last 2 years. We’re going to do it more, and we obviously also investing more in marketing and making the brand more known. And beyond that, I think it’s just the changes in what’s happening in the industry that are helping us as I know it was — I think it was Michael or Ed who mentioned that they were looking to book a hotel and was so expensive as year. Last year, you were often happy to even find a hotel if it wasn’t booked out yet, that is changing. And so people are now looking more for the kind of service that we have — that we are providing and that has made us so popular among these millions of travel enthusiasts over the years.

So the industry trends are just simply helping us. And you are right, in the last 3 years during the pandemic, we didn’t grow our member base, but we’re looking to change that this year.

Steven Silver: Great. And just one base of big picture. Over the last couple of years, there’s been significant changes in the way both the company has operated in terms of the changing of the Asia Pacific business, then weathering the pandemic while I think there are a couple of headwinds left maybe in terms of the higher inflation still and maybe the unfavorable currency exchange at this point. But would you say broadly that in terms of headwinds on the business that Travelzoo’s fundamentals are as strong as they’ve been in quite some time?

Holger Bartel: Well, you saw we had a very good quarter in Q4. It was our best quarter in the last 3 years. We’re going to have a good quarter again in Q1. And so we are very optimistic about 2023. We see that the trends that we are seeing among consumers are helping our business. We see that the trends of what we’re seeing in the industry with more capacity, with more seasonal changes in seasonal patterns in demand again, all that is favoring our business. So we’re very optimistic about 2023. So yes, we hope we’re finally back in a position where we can continue to deliver these really good operating margins that we have seen in Q4 and probably do even better.

Operator: I will now turn the call back over to Mr. Holger Bartel.

Holger Bartel: Well, thanks, everyone, for listening in, and we look forward to speaking with you soon again next quarter. Have a great day.

Operator: Thank you, ladies and gentlemen. This concludes today’s teleconference. You may disconnect your lines at this time. Have a nice day.