The online travel information provider said Friday that expenses related to subscriber marketing campaigns in new markets, as well as losses during the start-up phase would dampen 2007 and 2008 earnings. The stock was lately off almost $2.00 at $24.54. Shares fell as much as 5% on Friday.

In March, Travelzoo opened an office in France, followed by Hong Kong in April. In September, the company will open an office in Tokyo. Despite the impact on earnings, Travelzoo said last week that its global strategy is attractive in the long-term.

"As a global organization we are able to source the very best travel deals wherever they occur, research and review them with local expertise, and publish them to our more than 11 million subscribers," the company said in statement.

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