Travelzoo 2005 Annual Report Download - page 23

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Forward-Looking Statements
The information in this Report contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements are based upon current expectations, assumptions, estimates and projections about
Travelzoo Inc. and our industry. These forward-looking statements are subject to the many risks and
uncertainties that exist in our operations and business environment that may cause actual results, performance
or achievements of Travelzoo to be diÅerent from those expected or anticipated in the forward-looking
statements. Any statements contained herein that are not statements of historical fact may be deemed to be
forward-looking statements. For example, words such as ""may'', ""will'', ""should'', ""estimates'', ""predicts'',
""potential'', ""continue'', ""strategy'', ""believes'', ""anticipates'', ""plans'', ""expects'', ""intends'', and similar
expressions are intended to identify forward-looking statements. Travelzoo's actual results and the timing of
certain events could diÅer signiÑcantly from those anticipated in such forward-looking statements. Factors
that might cause or contribute to such a discrepancy include, but are not limited to, those discussed in this
Report in Part II Item 1A and the risks discussed in our other Securities and Exchange Commission
(""SEC'') Ñlings. The forward-looking statements included in this report reÖect the beliefs of our management
on the date of this report. We undertake no obligation to update publicly any forward-looking statements for
any reason, even if new information becomes available or other events or circumstances occur in the future.
PART I
Item 1. Business
Overview
Travelzoo Inc. (the ""Company'' or ""Travelzoo'') is an Internet media company. We publish travel oÅers
from hundreds of travel companies. As the Internet is becoming consumers' preferred medium to search for
travel oÅers, we provide airlines, hotels, cruise lines, vacation packagers, and other travel companies with a
fast, Öexible, and cost-eÅective way to reach millions of users. While our products provide advertising
opportunities for travel companies, they also provide Internet users with a free source of information on
current sales and specials from hundreds of travel companies.
Our publications include the Travelzoo Web sites (www.travelzoo.com and www.travelzoo.co.uk), the
Travelzoo Top 20 e-mail newsletter, and the NewsÖash e-mail product. The Company also operates
SuperSearch, a pay-per-click travel search engine.
More than 500 companies purchase our advertising services, including American Airlines, ATA, Avis
Rent A Car, British Airways, Caesars Entertainment, Delta Air Lines, Expedia, Fairmont Hotels & Resorts,
Interstate Hotels & Resorts, JetBlue Airways, Kimpton Hotels, Liberty Travel, Marriott Hotels, Royal
Caribbean, Spirit Airlines, Starwood Hotels & Resorts Worldwide, United Airlines, and Vanguard
Rent-A-Car.
Our revenues are generated from advertising sales. Our revenues have grown rapidly since we began
operations in 1998. Our revenues increased from approximately $84,000 for the period from May 21, 1998
(inception) to December 31, 1998, to approximately $50.8 million for the year ended December 31, 2005.
We have two operating segments based on geographic regions: North America and Europe. North
America consists of our U.S. operations. Europe consists of our U.K. operations which began in May 2005.
For the year ended December 31, 2005, European operations were 1% of revenues. Financial information with
respect to our business segments and certain Ñnancial information about geographic areas appears in Note 6
""SigniÑcant Customer Information and Segment Reporting,'' to the accompanying consolidated Ñnancial
statements, which Note is hereby incorporated by reference.
Our principal business oÇce is located at 590 Madison Avenue, 21st Floor, New York, New York 10022.
Travelzoo is controlled by Ralph Bartel, who holds beneÑcially approximately 78% of the outstanding
shares.
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