Travelzoo 2005 Annual Report Download - page 28

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Clients
As of December 31, 2005, our client base included more than 500 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 Pleasant Holidays
CheapTickets Royal Caribbean
Delta Air Lines Spirit Airlines
Dollar Rent A Car Starwood Hotels & Resorts Worldwide
Expedia Travelocity.com
Fairmont Hotels and Resorts United Airlines
Funjet Vacations US Airways
Hawaiian Airlines Vanguard Rent-A-Car
Hilton Hotels Virgin Atlantic
For the year ended December 31, 2005, one client accounted for 15% of our revenues. For the year ended
December 31, 2004, one client accounted for 12% of our revenues. For the year ended December 31, 2003, two
clients accounted for 11% and 10% of our revenues, respectively. No other clients accounted for 10% or more
of revenues in 2005, 2004, or 2003. Copies of the agreements with our largest client in 2005 were previously
Ñled as exhibits to our Annual Report on Form 10-K for the year ended December 31, 2004. The agreements
provided that Travelzoo will be paid for the publication of ads on a cost-per-click basis. The agreements for
2005 were cancelable upon 90 days' written notice. The payment terms were net 60 days with no discount for
early payment. The agreements for 2005 expired as of December 31, 2005.
Sales and Marketing
As of December 31, 2005, our advertising sales force consisted of a Senior Vice President of Sales, Ñve
advertising sales directors, and seven advertising sales managers. 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
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 sites, our
users are not required to download or upload large Ñles from or to our Web sites, 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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