Travelzoo 2010 Annual Report Download - page 35

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Growth Strategy
Key elements of our strategy include:
•Build Strong Brand Awareness. We believe that it is essential to establish a strong brand with Internet users
and within the travel industry, entertainment industry and with local businesses. We currently utilize online
marketing and direct marketing to promote our brand to consumers. In addition, we believe that we build
brand awareness through product excellence which leads to word-of-mouth referrals. We utilize
sponsorships at industry conferences and public relations to promote our brand.
•Increase Reach: In order to attract more users to our products, we intend to expand our advertising
campaigns as our business grows. We believe that we also can attract more users through product excellence
that is promoted by word-of-mouth.
•Quality User Base: We believe that, in addition to increasing our reach, we need to maintain the quality of
our user base. We believe that high quality content attracts a quality user base.
•Increase Number of Advertisers: We intend to continue to grow our advertiser base by expanding the size
of our sales force and by entering into new content categories such as restaurants and spas. See “— Sales and
Marketing” below.
•Excellent Service: We believe that it is important to provide our advertisers and users with excellent
service.
•Replicate Business Model in Foreign Markets. We have successfully replicated our business model in
foreign markets including Canada and the U.K. We believe that there is an opportunity to replicate our
business model in additional foreign markets. In addition, we believe that we can strengthen our strategic
position if we offer global advertising solutions to existing and new advertisers.
Advertisers
As of December 31, 2010, our advertiser base included more than 2,000 travel companies, entertainment
companies and local businesses, including airlines, hotels, cruise lines, vacations packagers, tour operators,
destinations, car rental companies, travel agents, theater and performing arts groups, restaurants, spas, and activity
companies. Some of our advertisers are:
American Airlines Interstate Hotels & Resort
Apple Vacations JetBlue Airways
Avis Rent A Car Kimpton Hotels
British Airways Liberty Travel
CheapTickets Lufthansa
Cirque du Soleil Marriott Hotels
Delta Air Lines Orbitz Worldwide
Expedia Royal Caribbean
Fairmont Hotels and Resorts Spirit Airlines
Funjet Vacations Starwood Hotels & Resorts Worldwide
Harrah’s Entertainment Travelocity
Hawaiian Airlines United Airlines
Hertz International Virgin America
Hilton Hotels Virgin Atlantic
InterContinental Hotels Group Walt Disney Parks & Resorts
As discussed in Note 8 to the accompanying consolidated financial statements, we did not have any advertisers
that accounted for 10% or more of our total revenues during the years ended December 31, 2010 and 2009. One
advertiser accounted for 10% or more of our total revenues during the year ended December 31, 2008. The
agreements with these advertisers are in the form of multiple insertion orders from groups of entities under common
8