Travelzoo could be looking to expand on its accommodation offering, with plans to acquire a hotel booking website.

Currently in negotiations to buy the booking engine, the company said the additional product would allow its customers to book deals on any night at select hotels.

Distinguishing itself from other online travel agencies, Travelzoo said it would limit the selection of properties on its list to those tested and approved by Travelzoo’s Deal Experts.

"We continue to be positive about our long-term growth strategy,” Travelzoo chief executive Chris Loughlin said.

“But we have found our hotel search offering and the group-buying voucher model not meeting the needs of hotels and users well enough, and therefore plan to adjust our product offering.”

The announcement coincides with news that the company expects to earn around $35 million for the third quarter of 2012.