Travelzoo, a prominent online seller of packaged vacations and other travel, is switching next month from a free service to a subscription that will cost members $40 a year for access to the site and its services.
The move, unusual if not unique in the industry, could possibly be the first move in a shift by other vendors such as Expedia or it might just move Travelzoo into a niche by itself, serving an audience that believes the company offers special value in its negotiated deals.
Travelzoo itself is pushing that point, saying in a press release that "We are passionate about what we do. Travelzoo is the club for travel enthusiasts. With the new membership fee, we will be able to negotiate even better, more exclusive offers than would be possible operating as a free service. This is because many top travel suppliers, including luxury hotels, as well as entertainment companies, only want to provide their best offers to a selective group."
To sweeten the sudden announcement last week, Travelzoo says its 30 million existing customers will get 2024 free, as will any new members who join before January 1st. That gives the company a year to win more loyalty before any possible big dropoff as the fees kick in next year, and to gauge whether it can win enough new members at the $40 price this year.
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