Just four months after unveiling the service in the US and with Groupon gaining momentum, Travelzoo is moving quickly to extend its Local Deals into Europe.
Local Deals is an extension of its existing entertainment deals service (ad referrals for concert tickets and the like), but expanded in terms of product range and to allow users to make a booking directly through Travelzoo.
The new division is being introduced first in the UK, with deals being sourced for Travelzoo subscribers in the London area, before being rolled out into other areas in the country and then gradually around other major Europe population areas, depending on results.
The key to the success of Local Deals is the ability to send deals to people in the area in which they live, along the same lines as the Groupon model, one of the fastest growing web businesses of all time.
UK managing director Joel Brandon-Bravo says around 95% of Travelzoo's 2.1 million subscribers in the UK have included their postcode in their profile, ensuring the Local Deals email shots will reach a sizeable audience immediately from launch (the first one was sent this week).
The deals will be secured by Travelzoo's existing sales team and others brought in over the coming months to focus just on this particular division.
Deals included are expected to range from entertainment (show and event tickets) and local activities to spa days.
But the move is a big step for Travelzoo after spending its entire existence essentially as a media company, sourcing and publishing travel deals for suppliers.
The opportunity, however, to capture some of this fast growing marketplace is leading companies to establish once unheard of processes - such as bookings - within the business.
Travelzoo is clearly taking the new division seriously, appointing a dedicated vice president for Local Deals in Europe, Melanie Bower, alongside Rene Freling who as executive producer helped get the service off the ground in the US and will become general manager for entertainment and Local Deals in the UK.
Brandon-Bravo says since Local Deals launched in the US, around 100,000 deals have run through the system, securing gross revenue of over $3 million.
This week's soft launch will be backed by a consumer push for the service in the New Year. There are currently around 4.5 million subscribers to Travelzoo in Europe and 21 million worldwide.