Travelzoo’s hotel booking platform, introduced in 2014, started showing signs of growth only after it was reintroduced with richer content pertaining to specific places in the U.S. in February 2015. However, since then, the hotel booking platform has been gradually gaining traction and the management stated that the bookings on the platform have more than doubled over the last year and have been showing no signs of slowdown till now. The conversion rates are also demonstrating growth. However, the revenue growth is yet to be seen since the revenue recognition through this platform is a lagged process because the company recognizes the commission after the completion of the hotel stay. In the face of large competitors such as Expedia and Priceline, Travelzoo is holding its ground on the basis of its differentiating factors. Travelzoo’s platform contains around 2,000 hotels while Expedia (along with HomeAway) and Priceline’s contain 1,508,000 and 855,000 accommodation listings on their platforms, respectively. Travelzoo’s management says that the company stresses quality rather than the quantity of offerings. Hence, its carefully curated offerings are being well received as proven by the growth in conversion rates. Additionally, the hotels pay a higher commission to the bigger OTAs in order to be listed on their pages. Recently, with Expedia’s Accelerator model, which allows hotels to bid against each other to gain the top slot on Expedia’s search listings, the price to advertise on the popular OTAs is expected to rise even more in the future. Hence, many hotels welcome a more cost effective platform such as that offered by Travelzoo. In fact, in some of the locations where Travelzoo’s deals are popular, hotels have been very satisfied with the conversion rates on Travelzoo’s hotel platform. Get the full story at Trefis Read also "Expedia turns hotel search results pages into a marketplace"