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Segment Reporting and Significant Customer Information | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segments Reporting and Significant Customer Information | Segment Reporting and Significant Customer Information The Company determines its reportable segments based upon the Company’s chief operating decision maker managing the performance of the business. Historically, the Company managed its business geographically and operated in three reportable segments including Asia Pacific, Europe and North America. During the nine months ended September 30, 2021, the Company classified the results of its Asia Pacific segment as discontinued operations in its condensed consolidated financial statements for current and prior periods presented. On January 13, 2020, Travelzoo agreed to the SPA with the Sellers of Jack’s Flight Club to purchase 60% of the Shares. Upon acquisition, the Company’s chief operating decision maker reviewed and evaluated Jack’s Flight Club as a separate segment. The Company currently has three reportable operating segments: Travelzoo North America, Travelzoo Europe and Jack’s Flight Club. Travelzoo North America consists of the Company’s operations in Canada and the U.S. Travelzoo Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. Jack’s Flight Club consists of subscription revenue from premium members to access and receive flight deals from Jack’s Flight Club via email or via Android or Apple mobile applications. 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 by business segment (in thousands):
Three Months Ended September 30, 2021 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | Elimination |  | Consolidated
Revenues from unaffiliated customers | $ | 9,527 |  |  | $ | 5,365 |  |  | $ | 796 |  |  | $ | — |  |  | $ | 15,688 |
Intersegment revenues (expenses) | 136 |  |  | (136) |  |  | — |  |  | — |  |  | — |
Total net revenues | 9,663 |  |  | 5,229 |  |  | 796 |  |  | — |  |  | 15,688 |
Operating profit (loss) | $ | (918) |  |  | $ | 600 |  |  | $ | 57 |  |  | $ | — |  |  | $ | (261) |
Three Months Ended September 30, 2020 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | Elimination |  | Consolidated
Revenues from unaffiliated customers | $ | 9,002 |  |  | $ | 3,798 |  |  | $ | 987 |  |  | $ | — |  |  | $ | 13,787 |
Intersegment revenues (expenses) | 141 |  |  | (141) |  |  | — |  |  | — |  |  | — |
Total net revenues | 9,143 |  |  | 3,657 |  |  | 987 |  |  | — |  |  | 13,787 |
Operating profit (loss) | $ | (696) |  |  | $ | (757) |  |  | $ | 250 |  |  | $ | — |  |  | $ | (1,203) |
Nine Months Ended September 30, 2021 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | Elimination |  | Consolidated
Revenues from unaffiliated customers | $ | 33,005 |  |  | $ | 13,503 |  |  | $ | 2,543 |  |  | $ | — |  |  | $ | 49,051 |
Intersegment revenues (expenses) | 462 |  |  | (462) |  |  | — |  |  | — |  |  | — |
Total net revenues | 33,467 |  |  | 13,041 |  |  | 2,543 |  |  | — |  |  | 49,051 |
Operating profit (loss) | $ | 2,654 |  |  | $ | (323) |  |  | $ | 117 |  |  | $ | — |  |  | $ | 2,448 |
Nine Months Ended September 30, 2020 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | Elimination |  | Consolidated
Revenues from unaffiliated customers | $ | 25,805 |  |  | $ | 12,706 |  |  | $ | 2,615 |  |  | $ | (8) |  |  | $ | 41,118 |
Intersegment revenues (expenses) | 237 |  |  | (245) |  |  | — |  |  | 8 |  |  | — |
Total net revenues | 26,042 |  |  | 12,461 |  |  | 2,615 |  |  | — |  |  | 41,118 |
Operating loss | $ | (6,374) |  |  | $ | (3,781) |  |  | $ | (3,013) |  |  | $ | (8) |  |  | $ | (13,176) |
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 the Company and its wholly owned subsidiaries. The following is a summary of assets by business segment (in thousands):
As of September 30, 2021 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | Elimination |  | Consolidated
Long-lived assets | $ | 685 |  |  | $ | 109 |  |  | $ | — |  |  | $ | — |  |  | $ | 794 |
Total assets excluding discontinued operations | $ | 140,116 |  |  | $ | 34,754 |  |  | $ | 6,468 |  |  | $ | (64,531) |  |  | $ | 116,807 |
As of December 31, 2020 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | Elimination |  | Consolidated
Long-lived assets | $ | 1,123 |  |  | $ | 224 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,347 |
Total assets excluding discontinued operations | $ | 138,020 |  |  | $ | 31,659 |  |  | $ | 5,796 |  |  | $ | (73,305) |  |  | $ | 102,170 |
For the nine months ended September 30, 2021 and 2020, the Company did not have any customers that accounted for 10% or more of revenue. As of September 30, 2021 and December 31, 2020, 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, Travelzoo website, Newsflash, Travelzoo Network), Getaways vouchers, hotel platform and vacation packages. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings).
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Travelzoo North America |  |  |  |  |  |  |
Travel | $ | 9,078 |  |  | $ | 8,706 |  |  | $ | 31,141 |  |  | $ | 23,772 |
Local | 585 |  |  | 437 |  |  | 2,326 |  |  | 2,270 |
Total Travelzoo North America revenues | 9,663 |  |  | 9,143 |  |  | 33,467 |  |  | 26,042 |
Travelzoo Europe |  |  |  |  |  |  |
Travel | 4,772 |  |  | 3,449 |  |  | 11,796 |  |  | 11,442 |
Local | 457 |  |  | 208 |  |  | 1,245 |  |  | 1,019 |
Total Travelzoo Europe revenues | 5,229 |  |  | 3,657 |  |  | 13,041 |  |  | 12,461 |
Jack’s Flight Club | 796 |  |  | 987 |  |  | 2,543 |  |  | 2,615 |
Consolidated |  |  |  |  |  |  |
Travelzoo Travel | 13,850 |  |  | 12,155 |  |  | 42,937 |  |  | 35,214 |
Travelzoo Local | 1,042 |  |  | 645 |  |  | 3,571 |  |  | 3,289 |
Jack’s Flight Club | 796 |  |  | 987 |  |  | 2,543 |  |  | 2,615 |
Total revenues | $ | 15,688 |  |  | $ | 13,787 |  |  | $ | 49,051 |  |  | $ | 41,118 |
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,
| 2021 |  | 2020 |  | 2021 |  | 2020
Revenue |  |  |  |  |  |  |
United States | $ | 8,607 |  |  | $ | 8,345 |  |  | $ | 31,042 |  |  | $ | 23,753 |
United Kingdom | 4,218 |  |  | 3,095 |  |  | 9,325 |  |  | 10,189 |
Germany | 1,390 |  |  | 1,386 |  |  | 4,287 |  |  | 4,148 |
Rest of the world | 1,473 |  |  | 961 |  |  | 4,397 |  |  | 3,028 |
Total revenues | $ | 15,688 |  |  | $ | 13,787 |  |  | $ | 49,051 |  |  | $ | 41,118 |
The following table sets forth property and equipment by geographic area (in thousands):
| September 30, |  | December 31,
| 2021 |  | 2020
United States | $ | 522 |  |  | $ | 912 |
Rest of the world | 272 |  |  | 435 |
Total long-lived assets | $ | 794 |  |  | $ | 1,347 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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