Deals publisher Travelzoo has revealed a 10% decrease year-on-year to $33.5 million in revenue for the third quarter ending September 30.
The company's net income for the period was $2.5 million with the North America business unit reporting a 14% decline in revenue t0 $22.6 million while operating profit was $238,000 down from $2.5 million.
Europe revenue decreased by 1% to $10.9 million with operating profit of $196,000 down from $1.5 million.
According to a statement from Travelzoo, subscribers now total 24.2 million in North America and Europe which represents a 4% increase year-on-year.
In the statement chief executive Chris Loughlin says a $2.4 million increase in marketing spend and continued investment in Travelzoo's products affected earnings per share.
He adds:
"We remain focused on leveraging our global scale and trusted brand to improve earnings in future periods."
No mention is made in the statement of Travelzoo's hotel booking platform which it began testing in North America in April on desktop and two months later on mobile.
However, later in an earnings call, newly appointed executive chairman Holger Bartel, a founder and former chairman of Travelzoo, talks about joining to "help navigate through a transitional period and bring the company back to growth."
Bartel goes on to talk about the previously stated growth strategy of the company built on two pillars - growing the audience and enhancing products - which has not "fully translated into the kind of growth we are looking for."
Travelzoo plans to invest in making its products easier to search for and improve usability and although the hotel booking platform enables users to find and book hotels anytime, the company says further work is needed on the content but that hotels cannot always connect in an "efficient manner."
He also touches on the impact of the consumer shift to booking later and says the increase in local deals enabling users to find deals close to where they are is beginning to reap results.
In terms of building audience, the company sees opportunity in leveraging its existing followers from a referrals point of view.
Bartel concludes that while the company strategy requires investment in various areas, the return is not going to be immediate.