Travelzoo 2004 Annual Report Download - page 25

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Clients
As of December 31, 2004, our client base included approximately 340 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, 2004, our largest client, Click Here, Inc., an advertising agency
representing Travelocity.com, accounted for 12% of our revenues. 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. No other clients
accounted for 10% or more of revenues in 2004, 2003, or 2002.
We have written agreements with Click Here, Inc. Copies of the agreements are Ñled as exhibits to this
Report. The agreements provide that Travelzoo will be paid for the publication of ads on a cost-per-click basis.
The agreements for 2004 were not cancelable by Click Here, Inc. The agreements for 2005 are cancelable by
Click Here, Inc. upon 90 days' written notice. The payment terms are net 60 days with no discount for early
payment.
Sales and Marketing
As of December 31, 2004, our direct sales force consisted of a Senior Vice President of Sales, a Vice
President of Business Development, four advertising sales directors, and four advertising sales managers.
We currently utilize an online marketing program to promote our brands to Internet users and acquire
new subscribers for our e-mail products. 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 and send a large volume of
e-mails 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 Web site, our
users are not required to download or upload large Ñles from or to our Web site, 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.
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