SOURCE: The Bedford Report

The Bedford Report

July 27, 2011 08:16 ET

Travelzoo and Expedia Adopt New Growth Strategies

The Bedford Report Provides Equity Research on Travelzoo & Expedia

NEW YORK, NY--(Marketwire - Jul 27, 2011) - With lackluster revenue growth in North American and European operations, online travel companies have made a push into emerging markets, and in particular China. Companies such as Travelzoo and Expedia are sinking millions into Chinese investments, signaling confidence in this market's long term growth potential. The Bedford Report examines the Personal Services Industry and provides stock research on Travelzoo, Inc. (NASDAQ: TZOO) and Expedia, Inc. (NASDAQ: EXPE). Access to the full company reports can be found at:

Expedia says that its strategy in China is to work through local, Chinese brands rather to engender any Expedia brand loyalty. Earlier this year the company increased its stake in the Chinese online travel agency eLong. Expedia plans to sink $50 million into its China investments over the next few years, so this eLong transaction can be seen as part of that broader move.

Travelzoo has adopted a different strategy, and has begun altering its brand identity in China. Travelzoo Asia Pacific, a licensee of the Travelzoo brand, will use the name Travelzoo Lv You Zu on its Chinese site and elsewhere from this week. "The enhanced visual identity is designed to target an emerging culture of individuals in China who are passionate about travelling, and who are savvy with their lifestyle choices," the company says.

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All is not lost in the United States. Market tracker PhoCusWright's US Consumer Travel Report Third Edition is cautiously optimistic, arguing more than twice as many domestic travelers plan to take more trips (32%) this year than those planning to take fewer trips (14%). And 29% of travelers say they plan to spend more in 2011, vs. 24% in the year-ago survey. PhoCusWright says only 63% of US adults took a leisure trip last year, a modest uptick from the 61% who did so in 2009, and far below the 71% of consumers who traveled for leisure in 2008.

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