Travelzoo (TZOO) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 26, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Travelzoo
Entity Central Index Key	1,133,311
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		12,461,553

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 18,822	$ 26,838
Accounts receivable, less allowance for doubtful accounts of $295 as of September 30, 2017 and December 31, 2016, respectively	11,434	14,415
Income tax receivable	1,540	542
Deferred tax assets	0	793
Deposits	396	105
Prepaid expenses and other	1,961	1,773
Total current assets	34,153	44,466
Deposits and other	508	702
Deferred tax assets	1,800
Deferred tax assets		1,052
Restricted cash	1,438	1,152
Property and equipment, net	5,265	6,158
Total assets	43,164	53,530
Current liabilities:
Accounts payable	15,966	19,714
Accrued expenses and other	7,932	8,699
Deferred revenue	897	719
Income tax payable	936	691
Total current liabilities	25,731	29,823
Long-term tax liabilities	2,563	2,879
Long-term deferred rent and other	2,721	2,764
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value (40,000 shares authorized; 12,465 shares and 13,462 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively)	125	135
Additional paid in capital	0	0
Retained earnings	15,580	21,716
Accumulated other comprehensive loss	(3,556)	(3,787)
Total stockholders’ equity	12,149	18,064
Total liabilities and stockholders’ equity	$ 43,164	$ 53,530

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 295	$ 295
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)	12,465,000	13,462,000
Common stock, shares outstanding (in shares)	12,465,000	13,462,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 24,687	$ 26,823	$ 79,527	$ 87,450
Cost of revenues	3,018	3,270	9,447	10,593
Gross profit	21,669	23,553	70,080	76,857
Operating expenses:
Sales and marketing	13,973	14,075	43,542	45,060
Product development	2,315	2,230	7,016	7,019
General and administrative	5,363	5,373	16,056	16,620
Total operating expenses	21,651	21,678	66,614	68,699
Income from continuing operations	18	1,875	3,466	8,158
Other income (loss), net	86	251	111	293
Income from continuing operations before income taxes	104	2,126	3,577	8,451
Income tax expense	680	748	2,660	3,450
Income (loss) from continuing operations	(576)	1,378	917	5,001
Income from discontinued operations, net of income taxes	0	241	1,938	687
Net income (loss)	$ (576)	$ 1,619	$ 2,855	$ 5,688
Income (loss) per share—basic:
Continuing operations (in dollars per share)	$ (0.05)	$ 0.10	$ 0.07	$ 0.35
Discontinued operations (in dollars per share)	0	0.02	0.15	0.05
Net income (loss) per share - basic (in dollars per share)	(0.05)	0.12	0.22	0.40
Income (loss) per share—diluted:
Continuing operations (in dollars per share)	(0.05)	0.10	0.07	0.35
Discontinued operations (in dollars per share)	0	0.02	0.15	0.05
Net income (loss) per share - diluted (in dollars per share)	$ (0.05)	$ 0.12	$ 0.22	$ 0.40
Shares used in computing basic net income (loss) per share (in shares)	12,628	13,839	13,023	14,109
Shares used in computing diluted net income (loss) per share (in shares)	12,628	13,867	13,040	14,119

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (576)	$ 1,619	$ 2,855	$ 5,688
Other comprehensive income (loss):
Foreign currency translation adjustment	131	(184)	231	99
Total comprehensive income (loss)	$ (445)	$ 1,435	$ 3,086	$ 5,787

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 2,855	$ 5,688
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,605	1,856
Discontinued operations: gain on sale of Fly.com domain name	(2,890)	0
Provision for losses (gains) on accounts receivable	(34)	17
Stock-based compensation	686	692
Deferred income tax	28	(224)
Net foreign currency effect	(293)	(308)
Changes in operating assets and liabilities:
Accounts receivable	3,388	(547)
Income tax receivable	(868)	(299)
Prepaid expenses and other	(417)	(387)
Accounts payable	(4,695)	(4,391)
Accrued expenses	(1,009)	(2,074)
Income tax payable	109	1,772
Other non-current liabilities	(349)	121
Net cash provided by (used in) operating activities	(1,884)	1,916
Cash flows from investing activities:
Proceeds from sale of Fly.com domain name	2,890	0
Purchases of property and equipment	(486)	(802)
Net cash provided by (used in) investing activities	2,404	(802)
Cash flows from financing activities:
Acquisition of the Asia Pacific business	0	58
Payment of loan to related party	0	(5,658)
Repurchase of common stock	(9,556)	(5,727)
Net cash used in financing activities	(9,556)	(11,327)
Effect of exchange rate changes on cash and cash equivalents	1,020	(76)
Net decrease in cash and cash equivalents	(8,016)	(10,289)
Cash and cash equivalents at beginning of period	26,838	35,128
Cash and cash equivalents at end of period	18,822	24,839
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net	4,858	2,198
Cash paid for interest on related party loan	$ 0	$ 110

The Company and Basis of Presen

The Company and Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation Travelzoo (the “Company”) is a global publisher of travel and entertainment offers. The Company informs its members in Asia Pacific, Europe and North America, as well as website users, about the best travel, entertainment and local deals available from thousands of companies. The Company's deal experts source, negotiate, research and test-book offers, recommending only those that meet Travelzoo’s rigorous quality standards. The Company provides travel, entertainment, and local businesses with a fast, flexible, and cost effective way to reach consumers. The Company's revenues are generated primarily from advertising fees. Our publications and products include the Travelzoo website (travelzoo.com), the Travelzoo iPhone and Android apps, the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, and the Travelzoo Network , a network of third-party websites that list travel deals published by Travelzoo. Our Travelzoo website includes Local Deals and Getaway 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. 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 September 30, 2017 , Azzurro is the Company's largest stockholder, holding approximately 57.8% of the Company's outstanding shares. During the first quarter of 2017, the Company discontinued operations of its SuperSearch and Fly.com products to focus on its global Travelzoo® brand and reflected the revenues and expenses for these products as discontinued operations, net of taxes, for the current and prior periods presented. See "Note 9: Discontinued Operations" for further information. 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 state 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, 2016, included in the Company’s Form 10-K filed with the SEC on March 15, 2017. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or any other future period, and the Company makes no representations related thereto. Recently Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU") 2015-17, "Income Taxes (Topic 740): 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 Company adopted ASU 2015-17 in the first quarter of 2017 on a prospective basis. Accordingly, the Company reclassified current deferred taxes of $793,000 to noncurrent on its March 31, 2017 consolidated balance sheet. No prior periods were retrospectively adjusted. 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. The Company adopted ASU 2016-09 in the first quarter of 2017. The Company elected to account for forfeitures as they occur and did not have unrecognized tax benefits of stock-based compensation; therefore, the adoption of this guidance did not have a material impact on our financial position or results of operations. Recent Accounting Pronouncements Not Yet Adopted 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"). In December 27, 2016, FASB issued ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers," which addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on construction-type and production-type contracts, and various disclosures. ASU 2016-20 will go into effect once ASU 2014-09 takes effect. The Company is currently assessing the timing of revenue for its various advertising products including Top 20 , Newsflash , Local Deals and Getaway vouchers and Hotel Platform commissions. Under this new guidance, the Company expects it will be required to recognize Local Deals and Getaway revenue on selected deals that is related to unredeemed vouchers based upon estimates at the time of sale of the vouchers rather than the current practice of waiting to recognize this revenue upon expiration of the legal obligation. Although the Company is still currently evaluating the impact of the adoption on its financial position, results of operations and cash flows and has not yet determined whether the effect will be material, the adoption is expected to result in additional required disclosures related to its revenue arrangements. The Company expects to adopt this standard effective January 1, 2018 with a cumulative adjustment to retained earnings using the modified retrospective method. 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 on its balance sheet. 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. For operating leases with terms longer than 12 months, the Company will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which addresses eight classification issues related to the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows: Restricted Cash," which addresses classification and presentation of changes in restricted cash on the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. Both ASU 2016-15 and ASU 2016-18 are effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017 and should apply using a retrospective transition method to each period presented. These accounting standard updates will be effective for the Company on January 1, 2018. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. This update is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. This accounting standard update will be effective for the Company on January 1, 2018 with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting," which gives direction on which changes to the terms or conditions of these awards require an entity to apply modification accounting in ASC Topic 718, "Compensation-Stock Compensation." The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for all entities with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income (loss) 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 (loss) per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Income (loss) from continuing operations $ (576 ) $ 1,378 $ 917 $ 5,001 Income from discontinued operations, net of income taxes — 241 1,938 687 Net income (loss) $ (576 ) $ 1,619 $ 2,855 $ 5,688 Denominator: Weighted average common shares—basic 12,628 13,839 13,023 14,109 Effect of dilutive securities: stock options — 28 17 10 Weighted average common shares—diluted 12,628 13,867 13,040 14,119 Income (loss) per share—basic: Continuing operations $ (0.05 ) $ 0.10 $ 0.07 $ 0.35 Discontinued operations — 0.02 0.15 0.05 Net income (loss) per share—basic $ (0.05 ) $ 0.12 $ 0.22 $ 0.40 Income (loss) per share—diluted: Continuing operations $ (0.05 ) $ 0.10 $ 0.07 $ 0.35 Discontinued operations — 0.02 0.15 0.05 Net income (loss) per share—diluted $ (0.05 ) $ 0.12 $ 0.22 $ 0.40 For the three and nine months ended September 30, 2017 , options to purchase 562,500 and 162,500 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the three and nine months ended September 30, 2016 , options to purchase 200,000 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
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. 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 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. During 2010 through 2014, the Company became subject to unclaimed property audits of various states in the United States related to the above unexchanged promotional shares and completed settlements with all states. 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 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 zero and $1,000 for the three and nine months ended September 30, 2016 , respectively. The Company did not make any payment for the three and nine months ended September 30, 2017 . 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 March 2017 and November 2024. The Company has purchase commitments which represent the minimum obligations the Company has under agreements with certain suppliers. 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 September 30, 2017 (in thousands): 2017 Remaining 2018 2019 2020 2021 Thereafter Total Operating leases $ 1,542 $ 5,240 $ 4,494 $ 3,825 $ 3,198 $ 5,626 $ 23,925 Purchase obligations 408 579 260 11 — — 1,258 Total commitments $ 1,950 $ 5,819 $ 4,754 $ 3,836 $ 3,198 $ 5,626 $ 25,183 Local Deals and Getaway merchant payables included in accounts payable were $11.0 million and $14.8 million , as of September 30, 2017 and December 31, 2016 , respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and 2016 , the Company's effective tax rate was 654% and 34% , respectively. For the nine months ended September 30, 2017 and 2016 , the Company's effective tax rate was 74% and 40% , respectively. The Company's effective tax rate increased for the three and nine months ended September 30, 2017 from the corresponding three and nine months ended September 30, 2016 , due primarily to the change of geographic mix of income (loss) from continuing operations, including a relative increase in foreign losses not benefited, for the three and nine months ended September 30, 2017 . 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 September 30, 2017 are approximately $13.9 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 $1.2 million at September 30, 2017 . The Company maintains liabilities for uncertain tax positions. At September 30, 2017 , the Company had approximately $1.6 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 September 30, 2017 and December 31, 2016 , the Company had approximately $985,000 and $951,000 , 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 the Company's taxes or its 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 the Company 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 and nine months ended September 30, 2017 because the Company does not believe the IRS’s valuation of the Asia Pacific business segment assets is appropriate. If the Company is not able to resolve these proposed adjustments at the IRS examination level, it plans to pursue all available administrative and, if necessary, judicial remedies.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning balance $ (3,687 ) $ (3,625 ) $ (3,787 ) $ (3,908 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 131 (184 ) 231 99 Ending balance $ (3,556 ) $ (3,809 ) $ (3,556 ) $ (3,809 ) There were no amounts reclassified from accumulated other comprehensive loss for the three and nine months ended September 30, 2017 and 2016 .

Stock-Based Compensation and St

Stock-Based Compensation and Stock Options	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation and Stock Options	Stock-Based Compensation and Stock Options The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized on a straight-line basis as expense over the related employees’ requisite service periods in the Company’s consolidated statements of operations. 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. During 2015 , 25,000 options were canceled and 25,000 options were forfeited upon the departure of an executive. As of September 30, 2017 , 50,000 options were outstanding and vested. As of September 30, 2017 , there was no unrecognized stock-based compensation expense relating to these options. 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 September 30, 2017 , 400,000 options were outstanding and 350,000 of these options were vested. Total stock-based compensation for the three and nine months ended September 30, 2017 , related to this option grant were $196,000 and $587,000 , respectively. As of September 30, 2017 , there was approximately $196,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 0.3 years . 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. During the three months ended September 30, 2017 , 37,500 options were forfeited upon the departure of an executive and the compensation expense of $19,000 was reversed. As of September 30, 2017 , 112,500 options were outstanding and 37,500 of these options were vested. Total stock-based compensation for the three and nine months ended September 30, 2017 , related to these option grants were $11,000 and $100,000 , respectively. As of September 30, 2017 , there was approximately $288,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 2.4 years . Subsequent to the quarter ended September 30, 2017, on October 30, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $6.95 , of which 50,000 shares are exercisable quarterly starting March 31, 2018 and ending on December 31, 2019. The options expire in 2027.

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Sep. 30, 2017
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 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 . 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 year ended December 31, 2016 , the Company repurchased 1,056,000 shares of common stock, including the 56,000 shares from the previous stock repurchase program, for an aggregate purchase price of $9.5 million and therefore there were no shares remaining to be repurchased under the repurchase programs authorized in January 2014 and January 2016 as of December 31, 2016. The shares repurchased were retired and recorded as a reduction of additional paid-in capital until extinguished with the remaining amount reflected as a reduction of retained earnings. In February 2017, 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 and nine months ended September 30, 2017 , the Company repurchased 287,713 and 996,705 shares of common stock, respectively, for an aggregate purchase price of $2.6 million and $ 9.7 million , respectively. The shares repurchased were retired and recorded as a reduction of additional paid-in capital until extinguished with the remaining amount reflected as a reduction of retained earnings. There were 3,295 shares remaining to be repurchased under this program as of September 30, 2017 .

Segment Reporting and Significa

Segment Reporting and Significant Customer Information	9 Months Ended
	Sep. 30, 2017
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 profit (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating profit (loss) are appropriate measures of evaluating the operational performance of the Company’s segments. These segment disclosures have been adjusted to remove the revenue and operating profit (loss) related to discontinued operations in the current and prior periods. See "Note 9: Discontinued Operations" for further information. The following is a summary of operating results and assets (in thousands) by business segment: Three Months Ended September 30, 2017 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 1,767 $ 8,008 $ 14,912 $ 24,687 Intersegment revenues 6 (62 ) 56 — Total net revenues 1,773 7,946 14,968 24,687 Operating profit (loss) $ (1,679 ) $ 309 $ 1,388 $ 18 Three Months Ended September 30, 2016 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 2,521 $ 8,614 $ 15,688 $ 26,823 Intersegment revenues 36 (140 ) 104 — Total net revenues 2,557 8,474 15,792 26,823 Operating profit (loss) $ (798 ) $ 1,412 $ 1,261 $ 1,875 Nine Months Ended September 30, 2017 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 5,574 $ 25,231 $ 48,722 $ 79,527 Intersegment revenues (38 ) (317 ) 355 — Total net revenues 5,536 24,914 49,077 79,527 Operating profit (loss) $ (4,385 ) $ 1,526 $ 6,325 $ 3,466 Nine Months Ended September 30, 2016 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 7,173 $ 28,893 $ 51,384 $ 87,450 Intersegment revenues 78 (403 ) 325 — Total net revenues 7,251 28,490 51,709 87,450 Operating profit (loss) $ (3,080 ) $ 5,022 $ 6,216 $ 8,158 As of September 30, 2017 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 151 $ 577 $ 4,537 $ — $ 5,265 Total assets $ 3,490 $ 49,721 $ 60,473 $ (70,520 ) $ 43,164 As of December 31, 2016 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 209 $ 763 $ 5,186 $ — $ 6,158 Total assets $ 5,295 $ 49,125 $ 65,961 $ (66,851 ) $ 53,530 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 and its wholly owned subsidiaries. For the three and nine months ended September 30, 2017 and 2016 , the Company did not have any customers that accounted for 10% or more of revenue. As of September 30, 2017 , the Company did not have any customers that accounted for 10% or more of accounts receivable. As of December 31, 2016 , the Company had one customer that accounted for 16% 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 ), Getaway vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Asia Pacific Travel $ 1,644 $ 2,334 $ 5,170 $ 6,582 Local 129 223 366 669 Total Asia Pacific revenues $ 1,773 $ 2,557 $ 5,536 $ 7,251 Europe Travel $ 7,052 $ 7,357 $ 21,852 $ 24,440 Local 894 1,117 3,062 4,050 Total Europe revenues $ 7,946 $ 8,474 $ 24,914 $ 28,490 North America Travel $ 12,146 $ 12,494 $ 40,916 $ 41,490 Local 2,822 3,298 8,161 10,219 Total North America revenues $ 14,968 $ 15,792 $ 49,077 $ 51,709 Consolidated Travel $ 20,842 $ 22,185 $ 67,938 $ 72,512 Local 3,845 4,638 11,589 14,938 Total revenues $ 24,687 $ 26,823 $ 79,527 $ 87,450 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue United States $ 13,658 $ 14,467 $ 45,127 $ 47,845 United Kingdom 4,483 4,994 14,136 17,518 Germany 2,881 3,042 9,047 9,436 Rest of the world 3,665 4,320 11,217 12,651 Total revenues $ 24,687 $ 26,823 $ 79,527 $ 87,450 The following table sets forth long lived asset by geographic area (in thousands): September 30, December 31, 2017 2016 United States $ 4,124 $ 4,755 Rest of the world 1,141 1,403 Total long lived assets $ 5,265 $ 6,158

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations On March 30, 2017, the Company decided to discontinue its Search products, consisting of Fly.com and SuperSearch products. This decision supports the Company’s strategy to focus on its global Travelzoo® brand. On March 30, 2017, the Company ceased operations of SuperSearch and on March 31, 2017, the Company sold the Fly.com domain name, which had no net book value, to a third party. There were no other assets or liabilities transferred as part this transaction. A reconciliation of the line items comprising the results of operations of the Search products to the income (loss) from discontinued operations through the date of disposal presented in the condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016, in thousands, is included in the following table: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenues from Search $ — $ 3,617 $ 2,088 $ 11,839 Cost of revenues — (91 ) (101 ) (389 ) Gross profit — 3,526 1,987 11,450 Total operating expenses — (3,196 ) (1,817 ) (10,479 ) Gain on sale of Fly.com domain name — — 2,890 — Income from discontinued operations before income taxes — 330 3,060 971 Income tax expense — 89 1,122 284 Income from discontinued operations, net of income taxes $ — $ 241 $ 1,938 $ 687

The Company and Basis of Pres16

The Company and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted & Not Yet Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU") 2015-17, "Income Taxes (Topic 740): 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 Company adopted ASU 2015-17 in the first quarter of 2017 on a prospective basis. Accordingly, the Company reclassified current deferred taxes of $793,000 to noncurrent on its March 31, 2017 consolidated balance sheet. No prior periods were retrospectively adjusted. 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. The Company adopted ASU 2016-09 in the first quarter of 2017. The Company elected to account for forfeitures as they occur and did not have unrecognized tax benefits of stock-based compensation; therefore, the adoption of this guidance did not have a material impact on our financial position or results of operations. Recent Accounting Pronouncements Not Yet Adopted 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"). In December 27, 2016, FASB issued ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers," which addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on construction-type and production-type contracts, and various disclosures. ASU 2016-20 will go into effect once ASU 2014-09 takes effect. The Company is currently assessing the timing of revenue for its various advertising products including Top 20 , Newsflash , Local Deals and Getaway vouchers and Hotel Platform commissions. Under this new guidance, the Company expects it will be required to recognize Local Deals and Getaway revenue on selected deals that is related to unredeemed vouchers based upon estimates at the time of sale of the vouchers rather than the current practice of waiting to recognize this revenue upon expiration of the legal obligation. Although the Company is still currently evaluating the impact of the adoption on its financial position, results of operations and cash flows and has not yet determined whether the effect will be material, the adoption is expected to result in additional required disclosures related to its revenue arrangements. The Company expects to adopt this standard effective January 1, 2018 with a cumulative adjustment to retained earnings using the modified retrospective method. 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 on its balance sheet. 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. For operating leases with terms longer than 12 months, the Company will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which addresses eight classification issues related to the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows: Restricted Cash," which addresses classification and presentation of changes in restricted cash on the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. Both ASU 2016-15 and ASU 2016-18 are effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017 and should apply using a retrospective transition method to each period presented. These accounting standard updates will be effective for the Company on January 1, 2018. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. This update is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. This accounting standard update will be effective for the Company on January 1, 2018 with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting," which gives direction on which changes to the terms or conditions of these awards require an entity to apply modification accounting in ASC Topic 718, "Compensation-Stock Compensation." The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for all entities with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows.

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Basic and diluted net income per share	The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Income (loss) from continuing operations $ (576 ) $ 1,378 $ 917 $ 5,001 Income from discontinued operations, net of income taxes — 241 1,938 687 Net income (loss) $ (576 ) $ 1,619 $ 2,855 $ 5,688 Denominator: Weighted average common shares—basic 12,628 13,839 13,023 14,109 Effect of dilutive securities: stock options — 28 17 10 Weighted average common shares—diluted 12,628 13,867 13,040 14,119 Income (loss) per share—basic: Continuing operations $ (0.05 ) $ 0.10 $ 0.07 $ 0.35 Discontinued operations — 0.02 0.15 0.05 Net income (loss) per share—basic $ (0.05 ) $ 0.12 $ 0.22 $ 0.40 Income (loss) per share—diluted: Continuing operations $ (0.05 ) $ 0.10 $ 0.07 $ 0.35 Discontinued operations — 0.02 0.15 0.05 Net income (loss) per share—diluted $ (0.05 ) $ 0.12 $ 0.22 $ 0.40

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of future lease payments for operating leases	The following table summarizes principal contractual commitments as of September 30, 2017 (in thousands): 2017 Remaining 2018 2019 2020 2021 Thereafter Total Operating leases $ 1,542 $ 5,240 $ 4,494 $ 3,825 $ 3,198 $ 5,626 $ 23,925 Purchase obligations 408 579 260 11 — — 1,258 Total commitments $ 1,950 $ 5,819 $ 4,754 $ 3,836 $ 3,198 $ 5,626 $ 25,183

Accumulated Other Comprehensi19

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning balance $ (3,687 ) $ (3,625 ) $ (3,787 ) $ (3,908 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 131 (184 ) 231 99 Ending balance $ (3,556 ) $ (3,809 ) $ (3,556 ) $ (3,809 )

Segment Reporting and Signifi20

Segment Reporting and Significant Customer Information (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 1,767 $ 8,008 $ 14,912 $ 24,687 Intersegment revenues 6 (62 ) 56 — Total net revenues 1,773 7,946 14,968 24,687 Operating profit (loss) $ (1,679 ) $ 309 $ 1,388 $ 18 Three Months Ended September 30, 2016 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 2,521 $ 8,614 $ 15,688 $ 26,823 Intersegment revenues 36 (140 ) 104 — Total net revenues 2,557 8,474 15,792 26,823 Operating profit (loss) $ (798 ) $ 1,412 $ 1,261 $ 1,875 Nine Months Ended September 30, 2017 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 5,574 $ 25,231 $ 48,722 $ 79,527 Intersegment revenues (38 ) (317 ) 355 — Total net revenues 5,536 24,914 49,077 79,527 Operating profit (loss) $ (4,385 ) $ 1,526 $ 6,325 $ 3,466 Nine Months Ended September 30, 2016 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 7,173 $ 28,893 $ 51,384 $ 87,450 Intersegment revenues 78 (403 ) 325 — Total net revenues 7,251 28,490 51,709 87,450 Operating profit (loss) $ (3,080 ) $ 5,022 $ 6,216 $ 8,158
Reconciliation of total assets from reportable segments to consolidated assets	As of September 30, 2017 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 151 $ 577 $ 4,537 $ — $ 5,265 Total assets $ 3,490 $ 49,721 $ 60,473 $ (70,520 ) $ 43,164 As of December 31, 2016 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 209 $ 763 $ 5,186 $ — $ 6,158 Total assets $ 5,295 $ 49,125 $ 65,961 $ (66,851 ) $ 53,530
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 ), Getaway vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Asia Pacific Travel $ 1,644 $ 2,334 $ 5,170 $ 6,582 Local 129 223 366 669 Total Asia Pacific revenues $ 1,773 $ 2,557 $ 5,536 $ 7,251 Europe Travel $ 7,052 $ 7,357 $ 21,852 $ 24,440 Local 894 1,117 3,062 4,050 Total Europe revenues $ 7,946 $ 8,474 $ 24,914 $ 28,490 North America Travel $ 12,146 $ 12,494 $ 40,916 $ 41,490 Local 2,822 3,298 8,161 10,219 Total North America revenues $ 14,968 $ 15,792 $ 49,077 $ 51,709 Consolidated Travel $ 20,842 $ 22,185 $ 67,938 $ 72,512 Local 3,845 4,638 11,589 14,938 Total revenues $ 24,687 $ 26,823 $ 79,527 $ 87,450 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue United States $ 13,658 $ 14,467 $ 45,127 $ 47,845 United Kingdom 4,483 4,994 14,136 17,518 Germany 2,881 3,042 9,047 9,436 Rest of the world 3,665 4,320 11,217 12,651 Total revenues $ 24,687 $ 26,823 $ 79,527 $ 87,450 The following table sets forth long lived asset by geographic area (in thousands): September 30, December 31, 2017 2016 United States $ 4,124 $ 4,755 Rest of the world 1,141 1,403 Total long lived assets $ 5,265 $ 6,158

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	A reconciliation of the line items comprising the results of operations of the Search products to the income (loss) from discontinued operations through the date of disposal presented in the condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016, in thousands, is included in the following table: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenues from Search $ — $ 3,617 $ 2,088 $ 11,839 Cost of revenues — (91 ) (101 ) (389 ) Gross profit — 3,526 1,987 11,450 Total operating expenses — (3,196 ) (1,817 ) (10,479 ) Gain on sale of Fly.com domain name — — 2,890 — Income from discontinued operations before income taxes — 330 3,060 971 Income tax expense — 89 1,122 284 Income from discontinued operations, net of income taxes $ — $ 241 $ 1,938 $ 687

The Company and Basis of Pres22

The Company and Basis of Presentation - Narrative (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction
Deferred tax assets, current	$ 0		$ 793,000
Deferred tax asset, noncurrent	$ 1,800,000
Majority Shareholder
Related Party Transaction
Percent of outstanding shares held by related party	57.80%
Accounting Standards Update 2015-07
Related Party Transaction
Deferred tax assets, current		$ (793,000)
Deferred tax asset, noncurrent		$ 793,000

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Income (loss) from continuing operations	$ (576)	$ 1,378	$ 917	$ 5,001
Income from discontinued operations, net of income taxes	0	241	1,938	687
Net income (loss)	$ (576)	$ 1,619	$ 2,855	$ 5,688
Denominator:
Weighted average common shares - basic (in shares)	12,628,000	13,839,000	13,023,000	14,109,000
Effect of dilutive securities: stock options (in shares)	0	28,000	17,000	10,000
Weighted average common shares - diluted (in shares)	12,628,000	13,867,000	13,040,000	14,119,000
Income (loss) per share—basic:
Continuing operations (in dollars per share)	$ (0.05)	$ 0.10	$ 0.07	$ 0.35
Discontinued operations (in dollars per share)	0	0.02	0.15	0.05
Net income (loss) per share - basic (in dollars per share)	(0.05)	0.12	0.22	0.40
Income (loss) per share—diluted:
Continuing operations (in dollars per share)	(0.05)	0.10	0.07	0.35
Discontinued operations (in dollars per share)	0	0.02	0.15	0.05
Net income (loss) per share - diluted (in dollars per share)	$ (0.05)	$ 0.12	$ 0.22	$ 0.40
Anti-dilutive shares not included in computation of net income (loss) per common share (in shares)	562,500	200,000	162,500	200,000

Commitments and Contingencies24

Commitments and Contingencies (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2004	Dec. 31, 2002	Dec. 31, 2016
Loss Contingencies
Charge in general and administrative expenses	$ 0	$ 0	$ 0	$ 1,000
Operating Leases, Future Minimum Payments Receivable [Abstract]
2017 Remaining	1,542,000		1,542,000
2,018	5,240,000		5,240,000
2,019	4,494,000		4,494,000
2,020	3,825,000		3,825,000
2,021	3,198,000		3,198,000
Thereafter	5,626,000		5,626,000
Total	23,925,000		23,925,000
Purchase Obligation, Fiscal Year Maturity [Abstract]
2017 Remaining	408,000		408,000
2,018	579,000		579,000
2,019	260,000		260,000
2,020	11,000		11,000
2,021	0		0
Thereafter	0		0
Total	1,258,000		1,258,000
Contractual Obligation, Fiscal Year Maturity [Abstract]
2017 Remaining	1,950,000		1,950,000
Total Commitments, Due in 2018	5,819,000		5,819,000
Total Commitments, Due in 2019	4,754,000		4,754,000
Total Commitments, Due in 2020	3,836,000		3,836,000
Total Commitments, Due in 2021	3,198,000		3,198,000
Total Commitments, Due Thereafter	5,626,000		5,626,000
Total commitments	25,183,000		25,183,000
Local deals and getaway merchant payables	$ 11,000,000		$ 11,000,000				$ 14,800,000
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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Taxes (Textual) [Abstract]
Effective tax rate (percent)	654.00%	34.00%	74.00%	40.00%
Undistributed earnings on a book basis for the non-U.S. subsidiaries	$ 13,900		$ 13,900
Unrecognized deferred tax liability related to undistributed earnings of non-U.S. subsidiaries	1,200		1,200
Total unrecognized tax benefits	1,600		1,600
Accrued interest and penalties	985		985		$ 951
Expected additional federal and state tax expense	$ 31,000		$ 31,000

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance			$ 18,064,000
Ending balance	$ 12,149,000		12,149,000
Amounts reclassified from accumulated other comprehensive loss	0	$ 0	0	$ 0
AOCI
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(3,687,000)	(3,625,000)	(3,787,000)	(3,908,000)
Ending balance	(3,556,000)	(3,809,000)	(3,556,000)	(3,809,000)
Foreign Currency Translation
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) due to foreign currency translation, net of tax	$ 131,000	$ (184,000)	$ 231,000	$ 99,000

Stock-Based Compensation and 27

Stock-Based Compensation and Stock Options (Details) - Stock Options - USD ($)	1 Months Ended				3 Months Ended	9 Months Ended	12 Months Ended
	Nov. 01, 2017	Mar. 31, 2016	Sep. 30, 2015	Jan. 31, 2012	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2015
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 canceled (in shares)							25,000
Options forfeited (in shares)							25,000
Options vested (in shares)					50,000	50,000
Unrecognized stock-based compensation expense					$ 0	$ 0
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 vested and become exercisable annually (in shares)			50,000
Options vested (in shares)					350,000	350,000
Options outstanding (in shares)					400,000	400,000
Total stock-based compensation expense					$ 196,000	$ 587,000
Unrecognized stock-based compensation expense					$ 196,000	$ 196,000
Expected duration for recognition of stock based compensation expense (in years)						3 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 vested (in shares)					37,500	37,500
Options outstanding (in shares)					112,500	112,500
Total stock-based compensation expense					$ 11,000	$ 100,000
Unrecognized stock-based compensation expense					$ 288,000	$ 288,000
Expected duration for recognition of stock based compensation expense (in years)						2 years 4 months 24 days
Executive Officer | March 2016 Plan
Stock-Based Compensation (Textual) [Abstract]
Options forfeited (in shares)					37,500
Total stock-based compensation expense					$ (19,000)
Subsequent Event | October 2017 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)	$ 6.95
Options vested and become exercisable quarterly (in shares)	50,000

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Feb. 28, 2017	Feb. 29, 2016	Jan. 31, 2014
January 2014 Plan
Class of Stock [Line Items]
Number of shares authorized to be repurchased (up to) (in shares)								500,000
Remaining number of shares authorized to be repurchased (in shares)				56,000
January 2014 Plan | Treasury Stock
Class of Stock [Line Items]
Shares repurchase and retired during period (in shares)				212,000	261,000
Stock repurchased during period, value				$ 1.7	$ 5.9
February 2016 Plan
Class of Stock [Line Items]
Number of shares authorized to be repurchased (up to) (in shares)							1,000,000
Remaining number of shares authorized to be repurchased (in shares)			56,000
February 2016 Plan | Treasury Stock
Class of Stock [Line Items]
Shares repurchase and retired during period (in shares)			1,056,000
Stock repurchased during period, value			$ 9.5
January 2014 and February 2016 Plan
Class of Stock [Line Items]
Remaining number of shares authorized to be repurchased (in shares)			0
February 2017 Plan
Class of Stock [Line Items]
Number of shares authorized to be repurchased (up to) (in shares)						1,000,000
Remaining number of shares authorized to be repurchased (in shares)	3,295	3,295
February 2017 Plan | Treasury Stock
Class of Stock [Line Items]
Shares repurchase and retired during period (in shares)	287,713	996,705
Stock repurchased during period, value	$ 2.6	$ 9.7

Segment Reporting and Signifi29

Segment Reporting and Significant Customer Information - Narrative (Details) - segment	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Segments (Textual) [Abstract]
Number of reportable operating segments	3
Customer One | Accounts Receivable | Credit Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage		16.00%

Segment Reporting and Signifi30

Segment Reporting and Significant Customer Information - Operating Results from Continuing Operations and Assets by Business Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Summary of operating results from continuing operations and assets by business segment
Revenues	$ 24,687	$ 26,823	$ 79,527	$ 87,450
Operating profit (loss)	18	1,875	3,466	8,158
Asia Pacific
Summary of operating results from continuing operations and assets by business segment
Revenues	1,773	2,557	5,536	7,251
Operating profit (loss)	(1,679)	(798)	(4,385)	(3,080)
Europe
Summary of operating results from continuing operations and assets by business segment
Revenues	7,946	8,474	24,914	28,490
Operating profit (loss)	309	1,412	1,526	5,022
North America
Summary of operating results from continuing operations and assets by business segment
Revenues	14,968	15,792	49,077	51,709
Operating profit (loss)	1,388	1,261	6,325	6,216
Operating Segments | Asia Pacific
Summary of operating results from continuing operations and assets by business segment
Revenues	1,767	2,521	5,574	7,173
Operating Segments | Europe
Summary of operating results from continuing operations and assets by business segment
Revenues	8,008	8,614	25,231	28,893
Operating Segments | North America
Summary of operating results from continuing operations and assets by business segment
Revenues	14,912	15,688	48,722	51,384
Other | Asia Pacific
Summary of operating results from continuing operations and assets by business segment
Revenues	6	36	(38)	78
Other | Europe
Summary of operating results from continuing operations and assets by business segment
Revenues	(62)	(140)	(317)	(403)
Other | North America
Summary of operating results from continuing operations and assets by business segment
Revenues	$ 56	$ 104	$ 355	$ 325

Segment Reporting and Signifi31

Segment Reporting and Significant Customer Information - Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Revenue for each segment recognized based on customer location
Long-lived assets	$ 5,265	$ 6,158
Total assets	43,164	53,530
Elimination
Revenue for each segment recognized based on customer location
Long-lived assets	0	0
Total assets	(70,520)	(66,851)
Asia Pacific | Operating Segments
Revenue for each segment recognized based on customer location
Long-lived assets	151	209
Total assets	3,490	5,295
Europe | Operating Segments
Revenue for each segment recognized based on customer location
Long-lived assets	577	763
Total assets	49,721	49,125
North America | Operating Segments
Revenue for each segment recognized based on customer location
Long-lived assets	4,537	5,186
Total assets	$ 60,473	$ 65,961

Segment Reporting and Signifi32

Segment Reporting and Significant Customer Information - Revenue by Type and Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Breakdown of revenues by type and segment
Total revenues	$ 24,687	$ 26,823	$ 79,527	$ 87,450
Asia Pacific
Breakdown of revenues by type and segment
Total revenues	1,773	2,557	5,536	7,251
Europe
Breakdown of revenues by type and segment
Total revenues	7,946	8,474	24,914	28,490
North America
Breakdown of revenues by type and segment
Total revenues	14,968	15,792	49,077	51,709
Travel
Breakdown of revenues by type and segment
Total revenues	20,842	22,185	67,938	72,512
Travel | Asia Pacific
Breakdown of revenues by type and segment
Total revenues	1,644	2,334	5,170	6,582
Travel | Europe
Breakdown of revenues by type and segment
Total revenues	7,052	7,357	21,852	24,440
Travel | North America
Breakdown of revenues by type and segment
Total revenues	12,146	12,494	40,916	41,490
Local
Breakdown of revenues by type and segment
Total revenues	3,845	4,638	11,589	14,938
Local | Asia Pacific
Breakdown of revenues by type and segment
Total revenues	129	223	366	669
Local | Europe
Breakdown of revenues by type and segment
Total revenues	894	1,117	3,062	4,050
Local | North America
Breakdown of revenues by type and segment
Total revenues	$ 2,822	$ 3,298	$ 8,161	$ 10,219

Segment Reporting and Signifi33

Segment Reporting and Significant Customer Information - Revenue for Individual Countries that Exceed 10% of Total Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue, Major Customer [Line Items]
Total revenues	$ 24,687	$ 26,823	$ 79,527	$ 87,450
United States
Revenue, Major Customer [Line Items]
Total revenues	13,658	14,467	45,127	47,845
United Kingdom
Revenue, Major Customer [Line Items]
Total revenues	4,483	4,994	14,136	17,518
GERMANY
Revenue, Major Customer [Line Items]
Total revenues	2,881	3,042	9,047	9,436
Rest of the world
Revenue, Major Customer [Line Items]
Total revenues	$ 3,665	$ 4,320	$ 11,217	$ 12,651

Segment Reporting and Signifi34

Segment Reporting and Significant Customer Information - Long Lives Assets by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets
Long-lived assets	$ 5,265	$ 6,158
United States
Revenues from External Customers and Long-Lived Assets
Long-lived assets	4,124	4,755
Rest of the world
Revenues from External Customers and Long-Lived Assets
Long-lived assets	$ 1,141	$ 1,403

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of Fly.com domain name			$ 2,890	$ 0
Income from discontinued operations, net of income taxes	$ 0	$ 241	1,938	687
Discontinued Operations, Disposed of by Sale | Fly.com domain
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues from Search	0	3,617	2,088	11,839
Cost of revenues	0	(91)	(101)	(389)
Gross profit	0	3,526	1,987	11,450
Total operating expenses	0	(3,196)	(1,817)	(10,479)
Gain on sale of Fly.com domain name	0	0	2,890	0
Income from discontinued operations before income taxes	0	330	3,060	971
Income tax expense	0	89	1,122	284
Income from discontinued operations, net of income taxes	$ 0	$ 241	$ 1,938	$ 687