Travelzoo 2007 Annual Report Download - page 39

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Clients
As of December 31, 2007, our client base included more than 900 travel companies, including airlines, hotels,
cruise lines, vacations packagers, tour operators, car rental companies, and travel agents. Some of our clients are:
American Airlines Interstate Hotels & Resort
Apple Vacations JetBlue Airways
ATA Kimpton Hotels
Avis Rent A Car Liberty Travel
British Airways Lufthansa
Budget Rent A Car Marriott Hotels
Caesars Entertainment Orbitz
CheapTickets Pleasant Holidays
Expedia Royal Caribbean
Fairmont Hotels and Resorts Spirit Airlines
Frontier Airlines Starwood Hotels & Resorts Worldwide
Funjet Vacations United Airlines
Harrah’s Vanguard Rent-A-Car
Hawaiian Airlines Virgin Atlantic
Hilton Hotels
As discussed in Note 7 to the accompanying consolidated financial statements, two clients each accounted for
10% or more of our total revenues during the years ended December 31, 2007, 2006, and 2005. No other clients
accounted for 10% or more of our total revenues during the years ended December 31, 2007, 2006, or 2005. The
agreements with these clients are in the form of multiple insertion orders from groups of entities under common
control. Management expects revenue concentration to remain at the current level in the foreseeable future because
there is a high concentration in the online travel agency industry.
Sales and Marketing
As of December 31, 2007, our advertising sales force and sales support staff consisted of 31 employees
worldwide. We intend to grow our advertising client base by expanding the size of our sales force.
We currently utilize online marketing and direct marketing to promote our brand to consumers. In addition, we
utilize an online marketing program to acquire new subscribers for our e-mail publications. In 2007, we began
testing outdoor brand advertising campaigns in Las Vegas and New York. 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 traffic and send a large volume of e-mails in
an efficient 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,
fire 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 sufficient bandwidth for our anticipated needs. Because of the design of our Web sites, our users are not
required to download or upload large files from or to our Web sites, which allows us to continue increasing the
number of our visitors and page views without adversely affecting our performance or requiring us to make
significant 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 HP servers and Cisco switches.
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