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Segment Reporting and Significant Customer Information
9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segments Reporting and Significant Customer Information Segment Reporting and Significant Customer Information
The Company determines its reportable segments based upon the Companys chief operating decision maker managing the performance of the business. The Company currently has four reportable operating segments: Travelzoo North America, Travelzoo Europe, Jack’s Flight Club and New Initiatives. 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. New Initiatives consists of Travelzoo licensing business and Travelzoo META subscription service and scouting and development business. Prior periods have been reclassified to conform with the current presentation.
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 for 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, 2023Travelzoo North
America
Travelzoo EuropeJack’s Flight Club New InitiativesConsolidated
Revenues from unaffiliated customers$13,094 $6,397 $1,080 $28 $20,599 
Intersegment revenues (expenses)314 (414)100 — — 
Total net revenues13,408 5,983 1,180 28 20,599 
Operating profit (loss)$3,015 $267 $144 $(317)$3,109 
Three Months Ended September 30, 2022Travelzoo North
America
Travelzoo EuropeJack’s Flight Club New InitiativesConsolidated
Revenues from unaffiliated customers$10,273 $4,721 $847 $$15,849 
Intersegment revenues (expenses)217 (217)— — — 
Total net revenues10,490 4,504 847 15,849 
Operating profit (loss)$1,021 $(551)$12 $(209)$273 
Nine Months Ended September 30, 2023Travelzoo North
America
Travelzoo EuropeJack’s Flight Club New InitiativesConsolidated
Revenues from unaffiliated customers$41,303 $18,937 $3,039 $49 $63,328 
Intersegment revenues (expenses)996 (1,180)184 — — 
Total net revenues42,299 17,757 3,223 49 63,328 
Operating profit (loss)$11,284 $485 $196 $(872)$11,093 
Nine Months Ended September 30, 2022Travelzoo North
America
Travelzoo EuropeJack’s Flight Club New InitiativesConsolidated
Revenues from unaffiliated customers$34,108 $15,243 $2,622 $18 $51,991 
Intersegment revenues (expenses)451 (451)— — — 
Total net revenues34,559 14,792 2,622 18 51,991 
Operating profit (loss)$6,113 $(1,845)$196 $(491)$3,973 
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, 2023Travelzoo North
America
Travelzoo EuropeJack’s Flight ClubNew InitiativesEliminationConsolidated
Long-lived assets$183 $102 $— $336 $— $621 
Total assets excluding discontinued operations$95,181 $19,563 $19,744 $467 $(79,154)$55,801 
As of December 31, 2022Travelzoo North
America
Travelzoo EuropeJack’s Flight ClubNew InitiativesEliminationConsolidated
Long-lived assets$375 $86 $— $196 $— $657 
Total assets excluding discontinued operations$97,693 $19,253 $18,737 $267 $(68,687)$67,263 
For the three and nine months ended September 30, 2023 and 2022, the Company did not have any customers that accounted for 10% or more of revenue. As of September 30, 2023 and December 31, 2022, 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, Standalone email newsletters, Travelzoo Network), Getaways vouchers, hotel platform and vacation packages. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). 
Three Months EndedNine Months Ended
 September 30,September 30,
 2023202220232022
Travelzoo North America
Travel$12,751 $9,660 $40,349 $32,149 
Local657 830 1,950 2,410 
Total Travelzoo North America revenues13,408 10,490 42,299 34,559 
Travelzoo Europe
Travel5,650 4,230 16,746 13,926 
Local333 274 1,011 866 
Total Travelzoo Europe revenues5,983 4,504 17,757 14,792 
Jack’s Flight Club
1,180 847 3,223 2,622 
New Initiatives28 49 18 
Consolidated
Travelzoo Travel18,401 13,890 57,095 46,075 
Travelzoo Local990 1,104 2,961 3,276 
Jack’s Flight Club
1,180 847 3,223 2,622 
New Initiatives28 49 18 
Total revenues$20,599 $15,849 $63,328 $51,991 

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 EndedNine Months Ended
September 30,September 30,
 2023202220232022
Revenue
United States $12,225 $9,599 $38,447 $31,464 
United Kingdom4,915 3,883 14,735 11,919 
Germany1,992 1,276 5,225 4,485 
Rest of the world1,467 1,091 4,921 4,123 
Total revenues$20,599 $15,849 $63,328 $51,991 

The following table sets forth property and equipment by geographic area (in thousands):  
 September 30,December 31,
 20232022
United States $122 $274 
China (Hong Kong)336 196 
Rest of the world 163 187 
Total long-lived assets$621 $657