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, 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.

The following is a summary of operating results (in thousands) by business segment:



Three Months Ended June 30, 2019	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	1,557		$	9,133		$	17,494	$	28,184
Intersegment revenues (expenses)	23			(451		)	428		—
Total net revenues	1,580			8,682			17,922		28,184
Operating profit (loss)	$	(1,783	)	$	584		$	3,623	$	2,424



Three Months Ended June 30, 2018	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	2,073		$	8,527		$	17,475	$	28,075
Intersegment revenues (expenses)	(9		)	(27		)	36		—
Total net revenues	2,064			8,500			17,511		28,075
Operating profit (loss)	$	(1,472	)	$	441		$	2,109	$	1,078



Six Months Ended June 30, 2019	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	3,192		$	20,187		$	35,630	$	59,009
Intersegment revenues (expenses)	53			(932		)	879		—
Total net revenues	3,245			19,255			36,509		59,009
Operating profit (loss)	$	(3,418	)	$	2,721		$	8,092	$	7,395



Six Months Ended June 30, 2018	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	4,115		$	18,859		$	35,985	$	58,959
Intersegment revenues (expenses)	(29		)	(79		)	108		—
Total net revenues	4,086			18,780			36,093		58,959
Operating profit (loss)	$	(3,212	)	$	2,407		$	5,540	$	4,735

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 six months ended June 30, 2019 and 2018, the Company did not have any customers that accounted for 10% or more of revenue. As of June 30, 2019 and December 31, 2018, the Company did not have any customers that accounted for 10% or more 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. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings).



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Asia Pacific
Travel	$	1,532	$	1,930	$	3,132	$	3,831
Local	48		134		113		255
Total Asia Pacific revenues	$	1,580	$	2,064	$	3,245	$	4,086
Europe
Travel	$	7,565	$	7,409	$	17,077	$	16,462
Local	1,117		1,091		2,178		2,318
Total Europe revenues	$	8,682	$	8,500	$	19,255	$	18,780
North America
Travel	$	15,252	$	14,596	$	31,569	$	30,632
Local	2,670		2,915		4,940		5,461
Total North America revenues	$	17,922	$	17,511	$	36,509	$	36,093
Consolidated
Travel	$	24,349	$	23,935	$	51,778	$	50,925
Local	3,835		4,140		7,231		8,034
Total revenues	$	28,184	$	28,075	$	59,009	$	58,959

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,
	2019		2018		2019		2018
Revenue
United States	$	16,329	$	15,974	$	33,224	$	33,092
United Kingdom	4,736		5,159		10,595		11,019
Germany	2,791		2,632		6,432		6,291
Rest of the world	4,328		4,310		8,758		8,557
Total revenues	$	28,184	$	28,075	$	59,009	$	58,959

The following table sets forth property and equipment by geographic area (in thousands):



	June 30,		December 31,
	2019		2018
United States	$	2,666	$	3,035
Rest of the world	680		755
Total long lived assets	$	3,346	$	3,790