Travelzoo (TZOO) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 04, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Travelzoo Inc
Entity Central Index Key	1,133,311
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,845,416

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 27,560	$ 35,128
Accounts receivable, less allowance for doubtful accounts of $380 and $384 as of June 30, 2016 and December 31, 2015, respectively	18,400	16,398
Income tax receivable	833	1,356
Deposits	488	782
Deferred tax assets	1,129	1,230
Prepaid expenses and other	1,828	2,095
Total current assets	50,238	56,989
Deposits	719	501
Deferred tax assets	570	1,769
Restricted cash	1,398	1,400
Property and equipment, net	7,228	7,905
Other assets, net	0	15
Total assets	60,153	68,579
Current liabilities:
Accounts payable	20,843	23,655
Accrued expenses and other	10,982	10,140
Deferred revenue	1,040	1,085
Income tax payable	1,639	477
Note payable to related party	0	5,658
Total current liabilities	34,504	41,015
Long-term tax liabilities	3,053	3,000
Long-term deferred rent and other	2,906	3,177
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value per share (5,000 shares authorized; none issued)	0	0
Common stock, $0.01 par value (40,000 shares authorized; 13,889 shares issued and outstanding as of June 30, 2016 and 14,518 shares issued and outstanding as of December 31, 2015)	144	150
Additional paid-in capital	1,716	7,759
Retained earnings	21,455	17,386
Accumulated other comprehensive loss	(3,625)	(3,908)
Total stockholders’ equity	19,690	21,387
Total liabilities and stockholders’ equity	$ 60,153	$ 68,579

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 380	$ 384
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	13,889,000	14,518,000
Common stock, shares outstanding (in shares)	13,889,000	14,518,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenues	$ 34,046	$ 36,792	$ 68,850	$ 75,937
Cost of revenues	3,612	5,208	7,621	9,754
Gross profit	30,434	31,584	61,229	66,183
Operating expenses:
Sales and marketing	19,135	20,715	38,094	42,792
Product development	2,089	3,206	4,964	6,295
General and administrative	5,434	5,335	11,247	11,786
Total operating expenses	26,658	29,256	54,305	60,873
Income from operations	3,776	2,328	6,924	5,310
Other income (loss), net	(91)	(218)	42	(664)
Income before income taxes	3,685	2,110	6,966	4,646
Income taxes	1,665	1,268	2,897	3,074
Net income	$ 2,020	$ 842	$ 4,069	$ 1,572
Basic net income per share (in dollars per share)	$ 0.14	$ 0.06	$ 0.29	$ 0.11
Diluted net income per share (in dollars per share)	$ 0.14	$ 0.06	$ 0.29	$ 0.11
Shares used in computing basic net income per share (in shares)	14,066	14,730	14,246	14,730
Shares used in computing diluted net income per share (in shares)	14,066	14,730	14,246	14,730

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 2,020	$ 842	$ 4,069	$ 1,572
Other comprehensive income (loss):
Foreign currency translation adjustment	91	1,225	283	(920)
Total comprehensive income	$ 2,111	$ 2,067	$ 4,352	$ 652

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 4,069	$ 1,572
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,250	1,510
Provision for losses on accounts receivable	44	52
Stock-based compensation	442	296
Deferred income tax	(211)	(242)
Net foreign currency effect	236	(165)
Changes in operating assets and liabilities:
Accounts receivable	(2,265)	(2,876)
Deposits	38	73
Income tax receivable	525	1,681
Prepaid expenses and other	182	635
Accounts payable	(2,210)	(1,236)
Reserve for unexchanged promotional shares	0	(1,393)
Accrued expenses	484	143
Income tax payable	1,268	23
Other non-current liabilities	53	795
Net cash provided by operating activities	3,905	868
Cash flows from investing activities:
Purchases of property and equipment	(648)	(753)
Release of restricted cash	0	57
Net cash used in investing activities	(648)	(696)
Cash flows from financing activities:
Acquisition of the Asia Pacific business	58	0
Payment of loan to related party	(5,658)	0
Proceeds from loan from related party	0	2,250
Decrease in bank overdraft	0	(237)
Repurchase of common stock	(4,956)	0
Net cash provided by (used in) financing activities	(10,556)	2,013
Effect of exchange rate changes on cash and cash equivalents	(269)	(1,125)
Net increase (decrease) in cash and cash equivalents	(7,568)	1,060
Cash and cash equivalents at beginning of period	35,128	55,417
Cash and cash equivalents at end of period	27,560	56,477
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net	1,072	733
Cash paid for interest on related party loan	$ 110	$ 0

The Company and Basis of Presen

The Company and Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation Travelzoo Inc. (the “Company” or “Travelzoo”) is a global media commerce company. We inform over 28 million members in Asia Pacific, Europe and North America, as well as millions of website users, about the best travel, entertainment and local deals available from thousands of companies. Our deal experts source, research and test-book offers, recommending only those that meet Travelzoo’s rigorous quality standards. We provide travel, entertainment, and local businesses with a fast, flexible, and cost effective way to reach millions of consumers. Our revenues are generated primarily from advertising fees. Our publications and products include the Travelzoo websites (www.travelzoo.com, www.travelzoo.ca, www.travelzoo.co.uk, www.travelzoo.de, www.travelzoo.es, www.travelzoo.fr, cn.travelzoo.com, www.travelzoo.co.jp, www.travelzoo.com.au, www.travelzoo.com.hk, www.travelzoo.com.tw, among others), the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, the SuperSearch pay-per-click travel search tool, and the Travelzoo Network , a network of third-party websites that list travel deals published by Travelzoo. The Travelzoo websites include Local Deals and Getaways listings that allow our members to purchase vouchers for deals from local businesses such as spas, hotels and restaurants. We receive a percentage of the face value of the voucher from the local businesses. We also operate Fly.com , a travel search engine that allows users to quickly and easily find the best prices on flights from hundreds of airlines and online travel agencies. Ralph Bartel, who founded Travelzoo and who is a Director of the Company, is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. ("Azzurro"). As of June 30, 2016 , Azzurro is the Company's largest stockholder, holding approximately 53.5% of the Company's outstanding shares. On August 20, 2015, we acquired the Travelzoo Asia Pacific business (“Travelzoo Asia Pacific”), which includes the Travelzoo businesses in Australia, China, Hong Kong, Japan, Taiwan, and Southeast Asia. This business was independently operated by Azzurro under a licensing agreement with Travelzoo Inc. Azzurro was the majority stockholder of Travelzoo Asia Pacific. Travelzoo Inc. accounted for the acquisition as a common control transaction and change in reporting entity. The financial results for Travelzoo Inc. have been retrospectively adjusted to include the financial results of Travelzoo Asia Pacific in the current and prior periods as though the transaction occurred at the beginning of each period presented. The Travelzoo Asia Pacific assets and liabilities have been combined with Travelzoo Inc. at their carrying values as though the transaction occurred at the beginning of each period presented. The Travelzoo Asia Pacific transaction proceeds were reflected as an equity transaction, included in retained earnings, during the period the transaction occurred, which was in the year ended December 31, 2015 . See Note 10 to the accompanying unaudited condensed consolidated financial statements for further information on the acquisition of Travelzoo Asia Pacific. Certain prior period statement of operations amounts have been reclassified to conform to the current period presentation. Starting from three months ended September 30, 2015 , the Company changed the manner in which it allocates facilities costs to all of its operating activities and has a separate disclosure of product development costs as shown below (in thousands): Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Cost of revenues $ 120 $ 242 Sales and marketing 1,858 3,816 Product development 3,206 6,294 General and administrative (5,184 ) (10,352 ) $ — $ — The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of the Company and its results of operations and cash flows. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2015 , included in the Company’s Form 10-K filed with the SEC on March 14, 2016. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including the recently acquired Travelzoo Asia Pacific subsidiaries reflected in the current and prior periods. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any other future period, and the Company makes no representations related thereto. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most of the existing revenue recognition guidance in U.S. GAAP when it becomes effective. This new accounting standard is effective for the Company for annual periods in fiscal years beginning after December 15, 2017 (as amended in August 2015 by ASU 2015-14, Deferral of the Effective Date). The Company will implement the provisions of ASU 2014-09 as of January 1, 2018. The Company has not yet evaluated nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued an accounting standard update that requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. This accounting standard update applies to all entities and is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early adoption permitted. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal year 2017. The adoption of this accounting standard update is not expected to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The updated standard is effective for us beginning on January 1, 2017 with early application permitted as of the beginning of any interim or annual reporting period. The adoption of this accounting standard update is not expected to have a material impact on the Company’s consolidated statement of financial position. In February 2016, the FASB issued an accounting standard update ASU 2016-02, Leases, which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. This accounting standard update will be effective for the Company on January 1, 2019. The Company is currently evaluating the effects that the adoption of ASU 2016-02 will have on the Company’s consolidated results of operations, financial position, and cash flows and anticipates the adoption of this accounting standard will have a significant impact on the Company's consolidated financial statements given the Company has a significant number of leases. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This accounting standard update will be effective for the Company on January 1, 2017 with early adoption permitted. The Company has not yet evaluated nor has it determined the effect of the standard on its ongoing financial reporting.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Basic net income per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method. The following table sets forth the calculation of basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Basic net income per share: Net income $ 2,020 $ 842 $ 4,069 $ 1,572 Weighted average common shares 14,066 14,730 14,246 14,730 Basic net income per share $ 0.14 $ 0.06 $ 0.29 $ 0.11 Diluted net income per share: Net income $ 2,020 $ 842 $ 4,069 $ 1,572 Weighted average common shares 14,066 14,730 14,246 14,730 Effect of dilutive securities: stock options — — — — Diluted weighted average common shares 14,066 14,730 14,246 14,730 Diluted net income per share $ 0.14 $ 0.06 $ 0.29 $ 0.11 For the three and six months ended June 30, 2016 and June 30, 2015 , options to purchase 600,000 and 425,000 shares of common stock, respectively, were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Financial Instruments	Financial Instruments The following tables summarize our financial assets measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Balance at June 30, 2016 Cash $ 27,560 $ 27,560 $ — $ — Total cash $ 27,560 $ 27,560 $ — $ — Certificates of deposit $ 709 $ — $ 709 $ — Merchant bank deposit 722 722 — — Total restricted cash and cash equivalent $ 1,431 $ 722 $ 709 $ — Balance at December 31, 2015 Cash $ 35,128 $ 35,128 $ — $ — Total cash $ 35,128 $ 35,128 $ — $ — Certificates of deposit $ 708 $ — $ 708 $ — Merchant bank deposit 725 725 — — Total restricted cash and cash equivalent $ 1,433 $ 725 $ 708 $ — At June 30, 2016 , and December 31, 2015 , accounts receivable, accounts payable and accrued expenses are not measured at fair value; however, the Company believes that the carrying amounts of these assets and liabilities are a reasonable estimate of their fair value because of their relative short maturity. At December 31, 2015 , the note payable to related party was not measured at fair value; however, the Company believes that the carrying amount of these assets and liabilities was a reasonable estimate of their fair value because of its relatively short maturity and subsequent payment. There have been no transfers and no changes in valuation methods for these assets or liabilities for the periods ended June 30, 2016 and December 31, 2015 .

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company was formed as a result of a combination and merger of entities founded by the Company’s principal stockholder, Ralph Bartel. In 2002, Travelzoo.com Corporation was merged into Travelzoo Inc. Under and subject to the terms of the merger agreement, holders of promotional shares of Travelzoo.com Corporation (“Netsurfers”) who established that they had satisfied certain prerequisite qualifications were allowed a period of 2 years following the effective date of the merger to receive one share of Travelzoo Inc. in exchange for each share of common stock of Travelzoo.com Corporation. In 2004, two years following the effective date of the merger, certain promotional shares remained unexchanged. As the right to exchange these promotional shares expired, no additional shares were reserved for issuance. Thereafter, the Company began to offer a voluntary cash program for those who established that they had satisfied certain prerequisite qualifications for Netsurfer promotional shares as further described below. Beginning in 2010, the Company became subject to unclaimed property audits of various states in the United States related to the above unexchanged promotional shares. The Company recorded charges for the estimated settlements with these states of $20.0 million , $3.0 million and $22.0 million in 2011, 2012 and 2013, respectively. In 2014, the Company released $7.6 million of the reserve related to the completion of settlements with the states and in 2015 the Company paid the final settlements outstanding. Although the Company has settled the unclaimed property claims with all states, the Company may still receive inquiries from certain potential Netsurfer promotional stockholders that had not provided their state of residence to the Company by April 25, 2004. Therefore, the Company is continuing its voluntary program under which it makes cash payments to individuals related to the promotional shares for individuals whose residence was unknown by the Company and who establish that they satisfy the original conditions required for them to receive shares of Travelzoo.com Corporation, and who failed to submit requests to convert their shares into shares of Travelzoo Inc. within the required time period. This voluntary program is not available for individuals whose promotional shares have been escheated to a state by the Company, except those individuals for which their residence was unknown to the Company. The accompanying condensed consolidated financial statements include charges in general and administrative expenses of $1,000 for these cash payments for the three months ended June 30, 2016 and 2015 . The accompanying condensed consolidated financial statements include charges in general and administrative expenses of $1,000 and $3,000 for these cash payments for the six months ended June 30, 2016 and 2015 . The total cost of this program cannot be reliably estimated because it is based on the ultimate number of valid requests received and future levels of the Company’s common stock price. The Company’s common stock price affects the liability because the amount of cash payments under the program is based in part on the recent level of the stock price at the date valid requests are received. The Company does not know how many of the requests for shares originally received by Travelzoo.com Corporation in 1998 were valid, but the Company believes that only a portion of such requests were valid. In order to receive payment under this voluntary program, a person is required to establish that such person validly held shares in Travelzoo.com Corporation. The Company leases office space in Australia, Canada, China, France, Germany, Hong Kong, Japan, Singapore, Spain, Taiwan, the U.K., and the U.S. under operating leases which expire between July 31, 2016 and November 30, 2024. The Company has purchase commitments which represent the minimum obligations the Company has under agreements with certain vendors. These minimum obligations are less than our projected use for those periods. Payments may be more than the minimum obligations based on actual use. The following table summarizes principal contractual commitments as of June 30, 2016 (in thousands): 2016 2017 2018 2019 2020 Thereafter Total Operating leases $ 2,766 $ 5,399 $ 4,558 $ 4,090 $ 3,636 $ 8,522 $ 28,971 Purchase obligations 457 882 365 — — — 1,704 Total commitments 3,223 6,281 4,923 4,090 3,636 8,522 30,675 Local Deals and Getaways merchant payables included in accounts payable were $13.2 million and $19.1 million , as of June 30, 2016 and December 31, 2015 , respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes In determining the quarterly provisions for income taxes, the Company uses an estimated annual effective tax rate, which is generally based on our expected annual income and statutory tax rates in the U.S., Canada, Japan, Hong Kong, and the U.K. For the three months ended June 30, 2016 and 2015 , the Company's effective tax rate was 45% and 60% , respectively. For the six months ended June 30, 2016 and 2015 , the Company's effective tax rate was 42% and 66% , respectively. Our effective tax rate decreased for the three and six months ended June 30, 2016 from the corresponding three and six months ended June 30, 2015 , due primarily to the change of geographic mix of taxable income and a $565,000 income tax expense for unrecognized tax benefits related to certain state tax matters for the six months ended June 30, 2015 . U.S. income and foreign withholding taxes have not been provided on undistributed earnings for certain non-U.S. subsidiaries. The undistributed earnings on a book basis for the non-U.S. subsidiaries as of June 30, 2016 are approximately $10.6 million . The Company intends to reinvest these earnings indefinitely in its operations outside the U.S. If the undistributed earnings are remitted to the U.S., these amounts would be taxable in the U.S. at the current federal and state tax rates net of foreign tax credits. Also, depending on the jurisdiction any distribution may be subject to withholding taxes at rates applicable for that jurisdiction. The estimated amount of the unrecognized deferred tax liability attributed to future dividend distributions of undistributed earnings is approximately $491,000 at June 30, 2016 . The Company maintains liabilities for uncertain tax positions. At June 30, 2016 , the Company had approximately $2.1 million in total unrecognized tax benefits, which if recognized, would favorably affect the Company’s effective income tax rate. The Company’s policy is to include interest and penalties related to unrecognized tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in the overall income tax provision in the period that such determination is made. As of June 30, 2016 and December 31, 2015 , the Company had approximately $925,000 and $872,000 , respectively, in accrued interest and penalties related to uncertain tax positions. The Company is in various stages of multiple year examinations by federal taxing authorities. Although the timing of initiation, resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of the gross unrecognized tax benefits related to the method of computing income taxes in certain jurisdictions and losses reported on certain income tax returns could significantly change in the next 12 months . These changes may occur through settlement with the taxing authorities or the expiration of the statute of limitations on the returns filed. The Company is unable to estimate the range of possible adjustments to the balance of the gross unrecognized tax benefits. The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is subject to U.S. federal and certain state tax examinations for certain years after 2008 and is subject to California tax examinations for years after 2005. The material foreign jurisdictions where the Company is subject to potential examinations by tax authorities are the France, Germany, Spain and United Kingdom for tax years after 2009. The Company's 2009 federal income tax return is currently under examination, including a review of the impact of the sale of Asia Pacific business segment in 2009. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating income. The Company has received a Revenue Agent’s Report (RAR) generally issued at the conclusion of an IRS examination, which was consistent with the Notice of Proposed Adjustment we received earlier from the IRS for the 2009 calendar year related to the sale of our Asia Pacific business segment with additional penalties. The RAR proposes an increase to the Company's U.S. taxable income which would result in additional federal tax, federal penalty and state tax expense totaling approximately $31.0 million , excluding interest and state penalties, if any. The proposed adjustment is primarily driven by the IRS’s view that the Asia Pacific business segment assets sold by the Company had a significantly higher valuation than the sales proceeds the Company received upon the sale. The Company disagrees with the proposed adjustments and intends to vigorously contest them. The Company did not make any adjustments to its liabilities for uncertain tax positions related to the RAR during the three months ended June 30, 2016 because the Company does not believe the IRS’s valuation of the Asia Pacific business segment assets is appropriate. If we are not able to resolve these proposed adjustments at the IRS examination level, we plan to pursue all available administrative and, if necessary, judicial remedies.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): Three Months Ended June 30, 2016 2015 Beginning balance $ (3,716 ) $ (4,747 ) Other comprehensive income due to foreign currency translation, net of tax 91 1,225 Ending balance $ (3,625 ) $ (3,522 ) Six Months Ended June 30, 2016 2015 Beginning balance $ (3,908 ) $ (2,602 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 283 (920 ) Ending balance $ (3,625 ) $ (3,522 ) There were no amounts reclassified from accumulated other comprehensive loss for the three and six months ended June 30, 2016 and 2015 .

Stock-Based Compensation and St

Stock-Based Compensation and Stock Options	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation and Stock Options	Stock-Based Compensation and Stock Options In November 2009, the Company granted an executive stock options to purchase 300,000 shares of common stock with an exercise price of $14.97 , of which 75,000 options vest and became exercisable annually starting July 1, 2011. The options' original expiration date was November 2019. As of June 30, 2016 , 300,000 of these options were forfeited upon the departure of the executive. In January 2012, the Company granted certain executives stock options to purchase 100,000 shares of common stock with an exercise price of $28.98 , of which 25,000 options became exercisable annually starting January 23, 2013. The options expire in January 2022. As of June 30, 2016 , 50,000 options were outstanding and vested. During 2014 , 25,000 options were canceled and 25,000 options were forfeited upon the departure of an executive. Total stock-based compensation for the three months ended June 30, 2016 and 2015 related to the outstanding stock option grant were $0 and $60,000 , respectively. Total stock-based compensation for the six months ended June 30, 2016 and 2015 related to the outstanding stock option grant were $5,000 and $119,000 , respectively. As of June 30, 2016 , there was no unrecognized stock-based compensation expense relating to these options. In July 2013, the Company granted an executive stock options to purchase 75,000 shares of common stock with an exercise price of $29.58 , of which 25,000 options became exercisable annually starting July 1, 2015. The options' original expiration date was July 2023. As of June 30, 2016 , 25,000 options were forfeited and 50,000 of these options were canceled upon the departure of the executive. In September 2015, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $8.07 , of which 50,000 options became exercisable quarterly starting March 31, 2016. The options expire in September 2025. As of June 30, 2016 , 400,000 options were outstanding and 100,000 of these options were vested. Total stock-based compensation for the three and six months ended June 30, 2016 , related to this option grant were $196,000 and $391,000 , respectively. As of June 30, 2016 , there was approximately $1.2 million of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 1.5 years . See Note 10 to the accompanying unaudited condensed consolidated financial statements for further information. In March 2016, the Company granted certain executives stock options to purchase 150,000 shares of common stock with an exercise price of $8.55 , of which 37,500 options vest and become exercisable annually starting on March 7, 2017. The options expire in March 2026. As of June 30, 2016 , 150,000 options were outstanding and none of these options were vested. Total stock-based compensation for the three and six months ended June 30, 2016 , related to these option grants were $34,000 and $46,000 , respectively. As of June 30, 2016 , there was approximately $654,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.8 years .

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stock Repurchase Program	Stock Repurchase Program The Company's stock repurchase programs assist in offsetting the impact of dilution from employee equity compensation and assist with capital allocation. Management is allowed discretion in the execution of the repurchase program based upon market conditions and consideration of capital allocation. In July 2012, the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock. There were 29,000 shares remaining to be repurchased under this program as of December 31, 2013 , which were repurchased in 2014 . In January 2014 , the Company announced a stock repurchase program authorizing the repurchase of up to 500,000 shares of the Company’s outstanding common stock. During the year ended December 31, 2014 , the Company repurchased 261,000 shares of common stock for an aggregate purchase price of $5.9 million , which were recorded as part of treasury stock as of December 31, 2014 . During the year ended December 31, 2015 , the Company repurchased 212,000 shares of common stock for an aggregate purchase price of $1.7 million . The shares repurchased under this program were retired as of December 31, 2015 . There were 56,000 shares remaining to be repurchased under this program as of December 31, 2015 , which were repurchased and retired during the three months ended March 31, 2016 . In February 2016 , the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock. During the three months ended March 31, 2016 , the Company repurchased 246,000 shares of common stock, including the 56,000 shares from the previous stock repurchase program, for an aggregate purchase price of $2.0 million , which were retired as of March 31, 2016 . During the three months ended June 30, 2016 , the Company repurchased 383,000 shares of common stock, for an aggregate purchase price of $3.0 million , which were retired as of June 30, 2016 . There were 427,000 shares remaining to be repurchased under this program as of June 30, 2016 .

Segment Reporting and Significa

Segment Reporting and Significant Customer Information	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segments Reporting and Significant Customer Information	Segment Reporting and Significant Customer Information The Company manages its business geographically and has three reportable operating segments: Asia Pacific, Europe and North America. Asia Pacific consists of the Company's operations in Australia, China, Hong Kong, Japan, Taiwan, and Southeast Asia. Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. North America consists of the Company’s operations in Canada and the U.S. Management relies on an internal management reporting process that provides revenue and segment operating income (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating income (loss) are appropriate measures of evaluating the operational performance of the Company’s segments. The following is a summary of operating results and assets (in thousands) by business segment: Three Months Ended June 30, 2016 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 2,412 $ 9,946 $ 21,688 $ — $ 34,046 Intersegment revenues 35 (247 ) 212 — — Total net revenues 2,447 9,699 21,900 — 34,046 Operating income (loss) $ (1,224 ) $ 1,791 $ 3,209 $ — $ 3,776 Three Months Ended June 30, 2015 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 2,728 $ 10,337 $ 23,727 $ — $ 36,792 Intersegment revenues (15 ) (78 ) 93 — — Total net revenues 2,713 10,259 23,820 — 36,792 Operating income (loss) $ (268 ) $ 47 $ 2,549 $ — $ 2,328 Six Months Ended June 30, 2016 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 4,671 $ 20,912 $ 43,267 $ — $ 68,850 Intersegment revenues 36 (321 ) 285 — — Total net revenues 4,707 20,591 43,552 — 68,850 Operating income (loss) $ (2,268 ) $ 3,885 $ 5,307 — $ 6,924 Six Months Ended June 30, 2015 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 5,381 $ 22,116 $ 48,440 $ — $ 75,937 Intersegment revenues (20 ) (295 ) 315 — — Total net revenues 5,361 21,821 48,755 — 75,937 Operating income (loss) $ (1,101 ) $ 1,776 $ 4,635 $ — $ 5,310 As of June 30, 2016 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 281 $ 938 $ 6,009 $ — $ 7,228 Total assets $ 4,545 $ 48,712 $ 73,552 $ (66,656 ) $ 60,153 As of December 31, 2015 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 369 $ 899 $ 6,652 $ — $ 7,920 Total assets $ 5,845 $ 54,452 $ 71,626 $ (63,344 ) $ 68,579 Revenue for each segment is recognized based on the customer location within a designated geographic region. Property and equipment are attributed to the geographic region in which the assets are located. Revenues from unaffiliated customers excludes intersegment revenues and represents revenue with parties unaffiliated with Travelzoo Inc. and its wholly owned subsidiaries. For the three months ended June 30, 2016 and 2015 , the Company did not have any customers that accounted for 10% or more of revenue. As of June 30, 2016 and December 31, 2015 , the Company had one Search customer that accounted for 17% and 15% , respectively, of accounts receivable. The following table sets forth the breakdown of revenues (in thousands) by category and segment. Travel revenue includes travel publications ( Top 20 , Website , Newsflash , Travelzoo Network ), Getaways vouchers and hotel platform. Search revenue includes SuperSearch and Fly.com . Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Asia Pacific Travel $ 2,220 $ 2,344 $ 4,247 $ 4,604 Search 9 16 14 27 Local 218 353 446 730 Total Asia Pacific revenues $ 2,447 $ 2,713 $ 4,707 $ 5,361 Europe Travel $ 8,075 $ 8,155 $ 17,082 $ 17,604 Search 242 698 576 1,338 Local 1,382 1,406 2,933 2,879 Total Europe revenues $ 9,699 $ 10,259 $ 20,591 $ 21,821 North America Travel $ 14,240 $ 14,688 $ 28,997 $ 30,728 Search 3,996 3,900 7,634 8,638 Local 3,664 5,232 6,921 9,389 Total North America revenues $ 21,900 $ 23,820 $ 43,552 $ 48,755 Consolidated Travel $ 24,535 $ 25,187 $ 50,326 $ 52,936 Search 4,247 4,614 8,224 10,003 Local 5,264 6,991 10,300 12,998 Total revenues $ 34,046 $ 36,792 $ 68,850 $ 75,937 Revenue by geography is based on the billing address of the advertiser. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. The following table sets forth revenue for countries that exceed 10% of total revenue (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue United States $ 20,887 $ 22,496 $ 41,189 $ 45,927 United Kingdom 6,547 6,856 13,668 14,727 Rest of the world 6,612 7,440 13,993 15,283 Total revenues $ 34,046 $ 36,792 $ 68,850 $ 75,937 The following table sets forth long lived asset by geographic area (in thousands): As of June 30, 2016 As of December 31, 2015 United States $ 5,527 $ 6,167 Rest of the world 1,701 1,753 Total long lived assets $ 7,228 $ 7,920

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions On August 20, 2015, Travelzoo acquired the Travelzoo Asia Pacific business (“Travelzoo Asia Pacific”), which includes the Travelzoo businesses in Australia, China, Hong Kong, Japan, Taiwan, and Southeast Asia. This business was independently operated by Azzurro Capital Inc. ("Azzurro") under a licensing agreement with Travelzoo Inc. The Company held an option right to acquire Travelzoo Asia Pacific at fair market value as determined by a third party valuation expert. Under the terms of the definitive acquisition agreement, Travelzoo (Europe) Limited, a United Kingdom subsidiary of the Company, was authorized by the Company to exercise the option right to acquire Travelzoo Asia Pacific for a fair market transaction value of $22.6 million , subject to a working capital adjustment, using available cash of $17.0 million and a promissory note of $5.7 million with a maturity date of three years. In January 2016, Travelzoo (Europe) Limited paid off the promissory note of $5.7 million using available cash in Europe. The Company’s board of directors established a special committee (the “Special Committee”), consisting of independent and disinterested directors and provided it with the exclusive power and authority to determine whether any potential transaction to acquire Travelzoo Asia Pacific was advisable, fair to and in the best interests of the Company's stockholders other than Azzurro, the principal stockholder of Travelzoo Inc. The Special Committee engaged independent legal counsel and an independent financial advisor, Stout Risius Ross, Inc. (“SRR”). The Special Committee obtained the right to select its own independent financial advisor, SRR, to independently determine the fair market value of Travelzoo Asia Pacific to be used as the option exercise price and received an opinion from SRR regarding the fairness of the Travelzoo Asia Pacific transaction from a financial point of view. SRR determined that $22.6 million represented the fair market value of Travelzoo Asia Pacific to be used as the option exercise price based upon the use of established valuation methodologies. The Special Committee, which was composed solely of independent and disinterested directors, unanimously approved the acquisition of Travelzoo Asia Pacific at the fair market value option exercise price with the assistance of its independent legal and financial advisors. Ralph Bartel, who founded Travelzoo and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro. As of June 30, 2016 , Azzurro is the Company's largest stockholder, holding approximately 53.5% of the Company’s outstanding shares. Since Azzurro had a controlling interest in both Travelzoo Inc. and Travelzoo Asia Pacific at the time of the transaction and in prior periods, this transaction is accounted for as a common control transaction and a change in reporting entity for the Company. The financial results for Travelzoo Inc. have been retrospectively adjusted to include the financial results of Travelzoo Asia Pacific for prior periods as though the transaction occurred at the beginning of each period presented, including the following adjustments: Three Months Ended Six Months Ended June 30, June 30, 2015 2015 Revenue $ 2,713 $ 5,361 Operating loss $ (268 ) (1,101 ) Net Loss $ (484 ) (1,663 ) Other Comprehensive income $ 64 188 Basic and diluted loss per share $ (0.03 ) $ (0.11 ) The Travelzoo Asia Pacific assets and liabilities have been combined with Travelzoo Inc. at their carrying values as though the transaction occurred at the beginning of each period presented. At June 30, 2016 , and December 31, 2015 , Travelzoo Asia Pacific net liabilities, total assets minus total liabilities, were $9.1 million , and $6.8 million , respectively. The Travelzoo Asia Pacific transaction proceeds of $22.6 million were reflected as an equity transaction, included in retained earnings, during the period the transaction occurred, which was in the year ended December 31, 2015 . Travelzoo (Europe) Limited, a United Kingdom subsidiary of the Company, acquired the Asia Pacific business, which includes certain customary seller indemnifications, through the acquisition of Travelzoo (Asia) Limited, including its wholly owned subsidiaries, and Travelzoo Japan KK. All significant intercompany accounts and transactions between Travelzoo Inc. and the acquired Travelzoo Asia Pacific entities have been eliminated for all periods presented. In November 2014, Azzurro provided a loan to Travelzoo Asia Pacific of $1.0 million with a stated interest rate of 8% . There was a $1.0 million loan and $5,000 accrued interest due to Azzurro as of December 31, 2014 . From January 1, 2015 to August 20, 2015 , Azzurro provided loans to Travelzoo Asia Pacific amounting to $2.2 million with a stated interest rate of 10% . In September 2015, the Company paid the due and outstanding principal loan amount of $3.3 million and accrued interest of $128,000 . On August 20, 2015, as part of the transaction proceeds Travelzoo (Europe) Limited issued a promissory note to Azzurro with a principal amount of $5.7 million , with a maturity date of August 20, 2018 and the ability to pay off principal prior to this maturity date with no prepayment penalty and a stated interest rate of 7% , which is due and payable on a quarterly basis. There were $5.7 million loans due to Azzurro as of December 31, 2015 . In January 2016, Travelzoo (Europe) Limited paid off the full amount of the loan of $5.7 million and interest of $110,000 . On September 28, 2015, Holger Bartel, Executive Chairman and Chairman of the Board of Directors, was granted 400,000 stock options that vest through December 31, 2017 in connection with his appointment to the role of Global Chief Executive Officer. See Note 7 to the accompanying unaudited condensed consolidated financial statements for further information.

The Company and Basis of Pres17

The Company and Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prior Period Reclassifications	Certain prior period statement of operations amounts have been reclassified to conform to the current period presentation. Starting from three months ended September 30, 2015 , the Company changed the manner in which it allocates facilities costs to all of its operating activities and has a separate disclosure of product development costs as shown below (in thousands): Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Cost of revenues $ 120 $ 242 Sales and marketing 1,858 3,816 Product development 3,206 6,294 General and administrative (5,184 ) (10,352 ) $ — $ —

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Basic and diluted net income per share	The following table sets forth the calculation of basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Basic net income per share: Net income $ 2,020 $ 842 $ 4,069 $ 1,572 Weighted average common shares 14,066 14,730 14,246 14,730 Basic net income per share $ 0.14 $ 0.06 $ 0.29 $ 0.11 Diluted net income per share: Net income $ 2,020 $ 842 $ 4,069 $ 1,572 Weighted average common shares 14,066 14,730 14,246 14,730 Effect of dilutive securities: stock options — — — — Diluted weighted average common shares 14,066 14,730 14,246 14,730 Diluted net income per share $ 0.14 $ 0.06 $ 0.29 $ 0.11

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Presentation of fair value of financial assets using the inputs	The following tables summarize our financial assets measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Balance at June 30, 2016 Cash $ 27,560 $ 27,560 $ — $ — Total cash $ 27,560 $ 27,560 $ — $ — Certificates of deposit $ 709 $ — $ 709 $ — Merchant bank deposit 722 722 — — Total restricted cash and cash equivalent $ 1,431 $ 722 $ 709 $ — Balance at December 31, 2015 Cash $ 35,128 $ 35,128 $ — $ — Total cash $ 35,128 $ 35,128 $ — $ — Certificates of deposit $ 708 $ — $ 708 $ — Merchant bank deposit 725 725 — — Total restricted cash and cash equivalent $ 1,433 $ 725 $ 708 $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of future lease payments for operating leases	The following table summarizes principal contractual commitments as of June 30, 2016 (in thousands): 2016 2017 2018 2019 2020 Thereafter Total Operating leases $ 2,766 $ 5,399 $ 4,558 $ 4,090 $ 3,636 $ 8,522 $ 28,971 Purchase obligations 457 882 365 — — — 1,704 Total commitments 3,223 6,281 4,923 4,090 3,636 8,522 30,675

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of changes in accumulated balances of other comprehensive loss	The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): Three Months Ended June 30, 2016 2015 Beginning balance $ (3,716 ) $ (4,747 ) Other comprehensive income due to foreign currency translation, net of tax 91 1,225 Ending balance $ (3,625 ) $ (3,522 ) Six Months Ended June 30, 2016 2015 Beginning balance $ (3,908 ) $ (2,602 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 283 (920 ) Ending balance $ (3,625 ) $ (3,522 )

Segment Reporting and Signifi22

Segment Reporting and Significant Customer Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Summary of operating results from continuing operations and assets by business segment	The following is a summary of operating results and assets (in thousands) by business segment: Three Months Ended June 30, 2016 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 2,412 $ 9,946 $ 21,688 $ — $ 34,046 Intersegment revenues 35 (247 ) 212 — — Total net revenues 2,447 9,699 21,900 — 34,046 Operating income (loss) $ (1,224 ) $ 1,791 $ 3,209 $ — $ 3,776 Three Months Ended June 30, 2015 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 2,728 $ 10,337 $ 23,727 $ — $ 36,792 Intersegment revenues (15 ) (78 ) 93 — — Total net revenues 2,713 10,259 23,820 — 36,792 Operating income (loss) $ (268 ) $ 47 $ 2,549 $ — $ 2,328 Six Months Ended June 30, 2016 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 4,671 $ 20,912 $ 43,267 $ — $ 68,850 Intersegment revenues 36 (321 ) 285 — — Total net revenues 4,707 20,591 43,552 — 68,850 Operating income (loss) $ (2,268 ) $ 3,885 $ 5,307 — $ 6,924 Six Months Ended June 30, 2015 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 5,381 $ 22,116 $ 48,440 $ — $ 75,937 Intersegment revenues (20 ) (295 ) 315 — — Total net revenues 5,361 21,821 48,755 — 75,937 Operating income (loss) $ (1,101 ) $ 1,776 $ 4,635 $ — $ 5,310
Reconciliation of total assets from reportable segments to consolidated assets	As of June 30, 2016 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 281 $ 938 $ 6,009 $ — $ 7,228 Total assets $ 4,545 $ 48,712 $ 73,552 $ (66,656 ) $ 60,153 As of December 31, 2015 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 369 $ 899 $ 6,652 $ — $ 7,920 Total assets $ 5,845 $ 54,452 $ 71,626 $ (63,344 ) $ 68,579
Breakdown of revenues and long-lived assets	The following table sets forth the breakdown of revenues (in thousands) by category and segment. Travel revenue includes travel publications ( Top 20 , Website , Newsflash , Travelzoo Network ), Getaways vouchers and hotel platform. Search revenue includes SuperSearch and Fly.com . Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Asia Pacific Travel $ 2,220 $ 2,344 $ 4,247 $ 4,604 Search 9 16 14 27 Local 218 353 446 730 Total Asia Pacific revenues $ 2,447 $ 2,713 $ 4,707 $ 5,361 Europe Travel $ 8,075 $ 8,155 $ 17,082 $ 17,604 Search 242 698 576 1,338 Local 1,382 1,406 2,933 2,879 Total Europe revenues $ 9,699 $ 10,259 $ 20,591 $ 21,821 North America Travel $ 14,240 $ 14,688 $ 28,997 $ 30,728 Search 3,996 3,900 7,634 8,638 Local 3,664 5,232 6,921 9,389 Total North America revenues $ 21,900 $ 23,820 $ 43,552 $ 48,755 Consolidated Travel $ 24,535 $ 25,187 $ 50,326 $ 52,936 Search 4,247 4,614 8,224 10,003 Local 5,264 6,991 10,300 12,998 Total revenues $ 34,046 $ 36,792 $ 68,850 $ 75,937 Revenue by geography is based on the billing address of the advertiser. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. The following table sets forth revenue for countries that exceed 10% of total revenue (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue United States $ 20,887 $ 22,496 $ 41,189 $ 45,927 United Kingdom 6,547 6,856 13,668 14,727 Rest of the world 6,612 7,440 13,993 15,283 Total revenues $ 34,046 $ 36,792 $ 68,850 $ 75,937 The following table sets forth long lived asset by geographic area (in thousands): As of June 30, 2016 As of December 31, 2015 United States $ 5,527 $ 6,167 Rest of the world 1,701 1,753 Total long lived assets $ 7,228 $ 7,920

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of related party transactions	The financial results for Travelzoo Inc. have been retrospectively adjusted to include the financial results of Travelzoo Asia Pacific for prior periods as though the transaction occurred at the beginning of each period presented, including the following adjustments: Three Months Ended Six Months Ended June 30, June 30, 2015 2015 Revenue $ 2,713 $ 5,361 Operating loss $ (268 ) (1,101 ) Net Loss $ (484 ) (1,663 ) Other Comprehensive income $ 64 188 Basic and diluted loss per share $ (0.03 ) $ (0.11 )

The Company and Basis of Pres24

The Company and Basis of Presentation - Narrative (Details)	6 Months Ended
	Jun. 30, 2016subscriber
The Company and Basis of Presentation (Additional Textual) [Abstract]
Number of subscribers (over)	28,000,000
Majority Shareholder
The Company and Basis of Presentation (Additional Textual) [Abstract]
Percent of outstanding shares held by related party	53.50%

The Company and Basis of Pres25

The Company and Basis of Presentation - Prior Period Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of revenues	$ 3,612	$ 5,208	$ 7,621	$ 9,754
Sales and marketing	19,135	20,715	38,094	42,792
Product development	2,089	3,206	4,964	6,295
General and administrative	5,434	5,335	11,247	11,786
Total operating expenses	$ 26,658	29,256	$ 54,305	60,873
Allocation of Facilities Costs | Prior Period Reclassification
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of revenues		120		242
Sales and marketing		1,858		3,816
Product development		3,206		6,294
General and administrative		(5,184)		(10,352)
Total operating expenses		$ 0		$ 0

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Basic net income per share:
Net income	$ 2,020	$ 842	$ 4,069	$ 1,572
Weighted average common shares (in shares)	14,066	14,730	14,246	14,730
Basic net income per share (in dollars per share)	$ 0.14	$ 0.06	$ 0.29	$ 0.11
Diluted net income per share:
Net income	$ 2,020	$ 842	$ 4,069	$ 1,572
Weighted average common shares (in shares)	14,066	14,730	14,246	14,730
Effect of dilutive securities: stock options (in shares)	0	0	0	0
Diluted weighted average common shares (in shares)	14,066	14,730	14,246	14,730
Diluted net income per share (in dollars per share)	$ 0.14	$ 0.06	$ 0.29	$ 0.11
Anti-dilutive shares not included in computation of net income (loss) per common share (in shares)	600	425	600	425

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Presentation of fair value of financial assets using the inputs
Total financial assets	$ 1,431	$ 1,433
(Level 1)
Presentation of fair value of financial assets using the inputs
Total financial assets	722	725
(Level 2)
Presentation of fair value of financial assets using the inputs
Total financial assets	709	708
(Level 3)
Presentation of fair value of financial assets using the inputs
Total financial assets	0	0
Cash
Presentation of fair value of financial assets using the inputs
Total financial assets	27,560	35,128
Cash | (Level 1)
Presentation of fair value of financial assets using the inputs
Total financial assets	27,560	35,128
Cash | (Level 2)
Presentation of fair value of financial assets using the inputs
Total financial assets	0	0
Cash | (Level 3)
Presentation of fair value of financial assets using the inputs
Total financial assets	0	0
Total cash
Presentation of fair value of financial assets using the inputs
Total financial assets	27,560	35,128
Total cash | (Level 1)
Presentation of fair value of financial assets using the inputs
Total financial assets	27,560	35,128
Total cash | (Level 2)
Presentation of fair value of financial assets using the inputs
Total financial assets	0	0
Total cash | (Level 3)
Presentation of fair value of financial assets using the inputs
Total financial assets	0	0
Certificates of deposit
Presentation of fair value of financial assets using the inputs
Total financial assets	709	708
Certificates of deposit | (Level 1)
Presentation of fair value of financial assets using the inputs
Total financial assets	0	0
Certificates of deposit | (Level 2)
Presentation of fair value of financial assets using the inputs
Total financial assets	709	708
Certificates of deposit | (Level 3)
Presentation of fair value of financial assets using the inputs
Total financial assets	0	0
Merchant bank deposit
Presentation of fair value of financial assets using the inputs
Total financial assets	722	725
Merchant bank deposit | (Level 1)
Presentation of fair value of financial assets using the inputs
Total financial assets	722	725
Merchant bank deposit | (Level 2)
Presentation of fair value of financial assets using the inputs
Total financial assets	0	0
Merchant bank deposit | (Level 3)
Presentation of fair value of financial assets using the inputs
Total financial assets	$ 0	$ 0

Commitments and Contingencies28

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2004	Dec. 31, 2002	Dec. 31, 2015
Loss Contingencies
Charge in general and administrative expenses	$ 1	$ 1	$ 1	$ 3
Operating Leases, Future Minimum Payments Receivable [Abstract]
2,016	2,766		2,766
2,017	5,399		5,399
2,018	4,558		4,558
2,019	4,090		4,090
2,020	3,636		3,636
Thereafter	8,522		8,522
Total	28,971		28,971
Purchase Obligation, Fiscal Year Maturity [Abstract]
2,016	457		457
2,017	882		882
2,018	365		365
2,019	0		0
2,020	0		0
Thereafter	0		0
Total	1,704		1,704
Contractual Obligation, Fiscal Year Maturity [Abstract]
Total Commitments, Due in 2016	3,223		3,223
Total Commitments, Due in 2017	6,281		6,281
Total Commitments, Due in 2018	4,923		4,923
Total Commitments, Due in 2019	4,090		4,090
Total Commitments, Due in 2020	3,636		3,636
Total Commitments, Due Thereafter	8,522		8,522
Total commitments	30,675		30,675
Local deals and getaway merchant payables	$ 13,200		$ 13,200								$ 19,100
Pending Litigation | Unclaimed Property Audits Related to Unexchanged Promotional Shares
Loss Contingencies
Unexchanged promotional shares						$ 22,000	$ 3,000	$ 20,000
Release of reserve for unexchanged shares					$ 7,600
Travel Zoo Com Corporation
Loss Contingencies
Period for receiving shares under merger (in years)									2 years	2 years
Number of shares exchanged under merger (in shares)										1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Taxes (Textual) [Abstract]
Effective tax rate (percent)	45.00%	60.00%	42.00%	66.00%
Unrecognized tax benefits, decrease resulting from prior period tax positions				$ 565
Undistributed earnings on a book basis for the non-U.S. subsidiaries	$ 10,600		$ 10,600
Unrecognized deferred tax liability related to undistributed earnings of non-U.S. subsidiaries	491		491
Total unrecognized tax benefits	2,100		2,100
Accrued interest and penalties	925		925		$ 872
Expected additional federal and state tax expense	$ 31,000		$ 31,000

Accumulated Other Comprehensi30

Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance			$ 21,387,000
Ending balance	$ 19,690,000		19,690,000
Amounts reclassified from accumulated other comprehensive loss	0	$ 0	0	$ 0
AOCI
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(3,716,000)	(4,747,000)	(3,908,000)	(2,602,000)
Ending balance	(3,625,000)	(3,522,000)	(3,625,000)	(3,522,000)
Foreign Currency Translation
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) due to foreign currency translation, net of tax	$ 91,000	$ 1,225,000	$ 283,000	$ (920,000)

Stock-Based Compensation and 31

Stock-Based Compensation and Stock Options (Details) - Stock Options - USD ($)	1 Months Ended					3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2016	Sep. 30, 2015	Jul. 31, 2013	Jan. 31, 2012	Nov. 30, 2009	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2014
November 2009 Plan
Stock-Based Compensation (Textual) [Abstract]
Employee options granted to purchase shares of common stock (in shares)					300,000
Exercise price of employee option shares of common stock (in dollars per share)					$ 14.97
Options vested and become exercisable annually (in shares)					75,000
Options forfeited (in shares)								300,000
January 2012 Plan
Stock-Based Compensation (Textual) [Abstract]
Employee options granted to purchase shares of common stock (in shares)				100,000
Exercise price of employee option shares of common stock (in dollars per share)				$ 28.98
Options vested and become exercisable annually (in shares)				25,000
Options forfeited (in shares)										25,000
Options outstanding (in shares)						50,000		50,000
Options canceled (in shares)										25,000
Total stock-based compensation expense						$ 0	$ 60,000	$ 5,000	$ 119,000
Unrecognized stock-based compensation expense						$ 0		$ 0
July 2013 Plan
Stock-Based Compensation (Textual) [Abstract]
Employee options granted to purchase shares of common stock (in shares)			75,000
Exercise price of employee option shares of common stock (in dollars per share)			$ 29.58
Options vested and become exercisable annually (in shares)			25,000
Options forfeited (in shares)								25,000
Options canceled (in shares)								50,000
September 2015 Plan
Stock-Based Compensation (Textual) [Abstract]
Employee options granted to purchase shares of common stock (in shares)		400,000
Exercise price of employee option shares of common stock (in dollars per share)		$ 8.07
Options outstanding (in shares)						400,000		400,000
Total stock-based compensation expense						$ 196,000		$ 391,000
Unrecognized stock-based compensation expense						$ 1,200,000		$ 1,200,000
Options vested and become exercisable quarterly (in shares)		50,000
Options vested (in shares)						100,000		100,000
Expected duration for recognition of stock based compensation expense (in years)								1 year 6 months
March 2016 Plan
Stock-Based Compensation (Textual) [Abstract]
Employee options granted to purchase shares of common stock (in shares)	150,000
Exercise price of employee option shares of common stock (in dollars per share)	$ 8.55
Options vested and become exercisable annually (in shares)	37,500
Options outstanding (in shares)						150,000		150,000
Total stock-based compensation expense						$ 34,000		$ 46,000
Unrecognized stock-based compensation expense						$ 654,000		$ 654,000
Options vested (in shares)						0		0
Expected duration for recognition of stock based compensation expense (in years)								3 years 9 months

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Feb. 29, 2016	Jan. 31, 2014	Dec. 31, 2013	Jul. 31, 2012
Class of Stock [Line Items]
Number of shares authorized to be repurchased (up to) (in shares)					1,000,000	500,000		1,000,000
Remaining number of shares authorized to be repurchased (in shares)	427,000		56,000				29,000
Treasury Stock
Class of Stock [Line Items]
Shares repurchase and retired during period (in shares)	383,000	246,000	212,000	261,000
Stock repurchased during period, value	$ 3	$ 2	$ 1.7	$ 5.9

Segment Reporting and Signifi33

Segment Reporting and Significant Customer Information - Operating Results from Continuing Operations and Assets by Business Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Summary of operating results from continuing operations and assets by business segment
Revenues	$ 34,046	$ 36,792	$ 68,850	$ 75,937
Operating income (loss)	3,776	2,328	6,924	5,310
Asia Pacific
Summary of operating results from continuing operations and assets by business segment
Revenues	2,447	2,713	4,707	5,361
Operating income (loss)	(1,224)	(268)	(2,268)	(1,101)
Europe
Summary of operating results from continuing operations and assets by business segment
Revenues	9,699	10,259	20,591	21,821
Operating income (loss)	1,791	47	3,885	1,776
North America
Summary of operating results from continuing operations and assets by business segment
Revenues	21,900	23,820	43,552	48,755
Operating income (loss)	3,209	2,549	5,307	4,635
Operating Segments | Asia Pacific
Summary of operating results from continuing operations and assets by business segment
Revenues	2,412	2,728	4,671	5,381
Operating Segments | Europe
Summary of operating results from continuing operations and assets by business segment
Revenues	9,946	10,337	20,912	22,116
Operating Segments | North America
Summary of operating results from continuing operations and assets by business segment
Revenues	21,688	23,727	43,267	48,440
Other
Summary of operating results from continuing operations and assets by business segment
Revenues	0	0	0	0
Operating income (loss)	0	0	0	0
Other | Asia Pacific
Summary of operating results from continuing operations and assets by business segment
Revenues	35	(15)	36	(20)
Other | Europe
Summary of operating results from continuing operations and assets by business segment
Revenues	(247)	(78)	(321)	(295)
Other | North America
Summary of operating results from continuing operations and assets by business segment
Revenues	$ 212	$ 93	$ 285	$ 315

Segment Reporting and Signifi34

Segment Reporting and Significant Customer Information - Assets by Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Revenue for each segment recognized based on customer location
Long-lived assets	$ 7,228	$ 7,920
Total assets	60,153	68,579
Elimination
Revenue for each segment recognized based on customer location
Long-lived assets	0	0
Total assets	(66,656)	(63,344)
Asia Pacific | Operating Segments
Revenue for each segment recognized based on customer location
Long-lived assets	281	369
Total assets	4,545	5,845
Europe | Operating Segments
Revenue for each segment recognized based on customer location
Long-lived assets	938	899
Total assets	48,712	54,452
North America | Operating Segments
Revenue for each segment recognized based on customer location
Long-lived assets	6,009	6,652
Total assets	$ 73,552	$ 71,626

Segment Reporting and Signifi35

Segment Reporting and Significant Customer Information - Revenue by Type and Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Breakdown of revenues by type and segment
Total revenues	$ 34,046	$ 36,792	$ 68,850	$ 75,937
Asia Pacific
Breakdown of revenues by type and segment
Total revenues	2,447	2,713	4,707	5,361
Europe
Breakdown of revenues by type and segment
Total revenues	9,699	10,259	20,591	21,821
North America
Breakdown of revenues by type and segment
Total revenues	21,900	23,820	43,552	48,755
Travel
Breakdown of revenues by type and segment
Total revenues	24,535	25,187	50,326	52,936
Travel | Asia Pacific
Breakdown of revenues by type and segment
Total revenues	2,220	2,344	4,247	4,604
Travel | Europe
Breakdown of revenues by type and segment
Total revenues	8,075	8,155	17,082	17,604
Travel | North America
Breakdown of revenues by type and segment
Total revenues	14,240	14,688	28,997	30,728
Search
Breakdown of revenues by type and segment
Total revenues	4,247	4,614	8,224	10,003
Search | Asia Pacific
Breakdown of revenues by type and segment
Total revenues	9	16	14	27
Search | Europe
Breakdown of revenues by type and segment
Total revenues	242	698	576	1,338
Search | North America
Breakdown of revenues by type and segment
Total revenues	3,996	3,900	7,634	8,638
Local
Breakdown of revenues by type and segment
Total revenues	5,264	6,991	10,300	12,998
Local | Asia Pacific
Breakdown of revenues by type and segment
Total revenues	218	353	446	730
Local | Europe
Breakdown of revenues by type and segment
Total revenues	1,382	1,406	2,933	2,879
Local | North America
Breakdown of revenues by type and segment
Total revenues	$ 3,664	$ 5,232	$ 6,921	$ 9,389

Segment Reporting and Signifi36

Segment Reporting and Significant Customer Information - Revenue for Individual Countries that Exceed 10% of Total Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue, Major Customer [Line Items]
Total revenues	$ 34,046	$ 36,792	$ 68,850	$ 75,937
United States
Revenue, Major Customer [Line Items]
Total revenues	20,887	22,496	41,189	45,927
United Kingdom
Revenue, Major Customer [Line Items]
Total revenues	6,547	6,856	13,668	14,727
Rest of the world
Revenue, Major Customer [Line Items]
Total revenues	$ 6,612	$ 7,440	$ 13,993	$ 15,283

Segment Reporting and Signifi37

Segment Reporting and Significant Customer Information - Long Lives Assets by Geographic Area (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets
Long-lived assets	$ 7,228	$ 7,920
United States
Revenues from External Customers and Long-Lived Assets
Long-lived assets	5,527	6,167
Rest of the world
Revenues from External Customers and Long-Lived Assets
Long-lived assets	$ 1,701	$ 1,753

Segment Reporting and Signifi38

Segment Reporting and Significant Customer Information - Narrative (Details) - segment	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Segments (Textual) [Abstract]
Number of reportable operating segments	3
Customer One | Accounts Receivable | Credit Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage	17.00%	15.00%

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	Sep. 28, 2015	Aug. 20, 2015	Jan. 31, 2016	Sep. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Nov. 30, 2014
Related Party Transaction
Repayments of related party debt					$ 5,658	$ 0
Majority Shareholder
Related Party Transaction
Percent of outstanding shares held by related party					53.50%
Travelzoo Asia Pacific
Related Party Transaction
Market transaction value		$ 22,600					$ 22,600
Cash consideration		17,000
Business combination, consideration transferred, liabilities incurred		$ 5,700
Term (in years)		3 years
Travelzoo Asia Pacific Adjustments | Affiliated Entity
Related Party Transaction
Net Liabilities					$ 9,100		6,800
Loan Issued to Asia Pacific | Majority Shareholder
Related Party Transaction
Repayments of related party debt				$ 3,300
Related party debt		$ 2,200						$ 1,000	$ 1,000
Stated interest rate (percentage)		10.00%							8.00%
Interest Payable								$ 5
Repayments of related party debt, interest				$ 128
Travelzoo Europe Promissory Note | Majority Shareholder
Related Party Transaction
Repayments of related party debt			$ 5,700
Related party debt		$ 5,700					$ 5,700
Stated interest rate (percentage)		7.00%
Repayments of related party debt, interest			$ 110
Stock Options Granted | Global Chief Executive Officer
Related Party Transaction
Employee options granted to purchase shares of common stock (in shares)	400,000

Related Party Transactions - As

Related Party Transactions - Asia Pacific Financial Results (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction
Revenues	$ 34,046	$ 36,792	$ 68,850	$ 75,937
Operating loss	3,776	2,328	6,924	5,310
Net Loss	2,020	842	4,069	1,572
Other Comprehensive income	$ 2,111	2,067	$ 4,352	652
Affiliated Entity | Travelzoo Asia Pacific Adjustments
Related Party Transaction
Revenues		2,713		5,361
Operating loss		(268)		(1,101)
Net Loss		(484)		(1,663)
Other Comprehensive income		$ 64		$ 188
Basic and diluted loss per share (in dollars per share)		$ (0.03)		$ (0.11)