Travelzoo 2003 Annual Report Download - page 26

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Clients
As of December 31, 2003, our client base included approximately 300 travel companies, including
airlines, hotels, cruise lines, vacations packagers, tour operators, car rental companies, and travel agents. Some
of our clients are:
American Airlines JetBlue Airways
Apple Vacations Kimpton Hotels
ATA Liberty Travel
Avis Rent A Car Lufthansa
British Airways Marriott Hotels
Budget Rent A Car Pleasant Holidays
Caesars Entertainment Royal Caribbean
Dollar Rent A Car Spirit Airlines
Expedia Starwood Hotels & Resorts Worldwide
Fairmont Hotels and Resorts Travelocity.com
Funjet Vacations United Airlines
Hawaiian Airlines US Airways
Hilton Hotels Virgin Atlantic
For the year ended December 31, 2003, our two largest clients accounted for 11% and 10% of our
revenues, respectively. For the year ended December 31, 2002, our two largest clients accounted for 15% and
14% of our revenues, respectively. For the year ended December 31, 2001, our two largest clients accounted
for 15% and 13% of our revenues, respectively. No other clients accounted for 10% or more of revenues in
2003, 2002, or 2001.
Sales and Marketing
As of December 31, 2003, our direct sales force consisted of a Senior Vice President of Sales, a Vice
President of Business Development and Ñve advertising sales managers.
We currently utilize an online marketing program to promote our brands to Internet users. In addition, we
believe that we build brand awareness by product excellence that is promoted by word-of-mouth. We utilize
sponsorships at industry conferences and public relations to promote our brands within the travel industry.
Technology
We have designed our technology to serve a large volume of web traÇc in an eÇcient and scaleable
manner.
We co-locate our production servers with SAVVIS, a global provider of hosting, network, and application
services. SAVVIS's facility includes features such as power redundancy, multiple egress and peering to other
ISPs, Ñre suppression and access to our own separate physical space. We believe our arrangements with
SAVVIS will allow us to grow without being limited by our own physical and technological capacity, and will
also provide us with suÇcient bandwidth for our anticipated needs. Because of the design of our website, our
users are not required to download or upload large Ñles from or to our website, which allows us to continue
increasing the number of our visitors and page views without adversely aÅecting our performance or requiring
us to make signiÑcant additional capital expenditures.
Our software is written using open standards, such as Visual Basic Script, and HTML, and interfaces
with products from Microsoft. We have standardized our hardware platform on Compaq servers and Cisco
switches.
Competition
We compete with large Internet portal sites, such as About.com, America Online, Lycos, MSN and
Yahoo!, that oÅer listings or other advertising opportunities for travel companies. We also compete with search
engines like Google or Overture that oÅer pay-per-click listings. In addition, we compete with newspapers,
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