Travelzoo 2008 Annual Report Download

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L
TRA
VEZOO
TRA
VEL
ZOO
NASDAQ: TZOO
2008 Annual Report
2009 Proxy Statement

Table of contents

  • Page 1
    TRAVELZ OO NASDAQ: TZOO 2008 Annual Report 2009 Proxy Statement

  • Page 2
    ... business hours at Travelzoo's principal executive offices, located at 590 Madison Avenue, 37th Floor, New York, New York 10022, for ten days prior to the meeting. A stockholder may examine the list for any legally valid purpose related to the meeting. On behalf of the entire Board of Directors...

  • Page 3
    ...HEREBY GIVEN that the Annual Meeting of Stockholders of Travelzoo Inc., a Delaware corporation, will be held on Thursday, June 4, 2009, at 10:00 a.m., local time, at 590 Madison Avenue, 37th Floor, New York, New York 10022, for the following purposes: 1. To elect five directors for terms expiring in...

  • Page 4
    ... of business on April 16, 2009. On the record date, there were 16,443,828 shares of our common stock outstanding. Where and when is the Annual Meeting? The Annual Meeting of Stockholders will take place on June 4, 2009 at 590 Madison Avenue, 37th Floor, New York, New York 10022. The meeting will...

  • Page 5
    ... file on or before August 10, 2009. You can obtain a copy of the Form 10-Q by logging on to Travelzoo's investor relations Web site at www.travelzoo.com/ir, by calling the Securities and Exchange Commission at (800) SEC-0330 for the location of the nearest public reference room, or through the EDGAR...

  • Page 6
    ...over 40 countries. Since 1987, Mr. Neale-May has been managing and running his own marketing and public relations agency business, Neale-May & Partners, operating from Silicon Valley and New York offices. Previously, Mr. Neale-May held senior positions with marketing, promotions and public relations...

  • Page 7
    ..., in Silicon Valley, New York, London and Los Angeles. During his 30 years as an international marketing and brand strategist, Mr. Neale-May has consulted with over 300 leading multi-nationals, new venture starts and emerging growth companies. Mr. Neale-May is the founder and executive director of...

  • Page 8
    ... (ii) to review and supervise preparation of all SEC filings, press releases and other broadly disseminated correspondence. Nominating Committee Travelzoo does not have a nominating committee of the Board of Directors. Since it is a "Controlled Company" under NASDAQ Rule 5615(c), on account of the...

  • Page 9
    ...recommended to the Board of Directors (and the Board of Directors has approved) that the audited financial statements be included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2008 for filing with the SEC. The committee has not yet selected Travelzoo's independent auditors...

  • Page 10
    ...Number of Percent Shares(1) of Total(2) Beneficial Owner Directors and Named Executive Officers Holger Bartel ...Ralph Bartel(3) ...David J. Ehrlich ...Wayne Lee ...Christopher Loughlin ...Donovan Neale-May ...Max Rayner ...Shirley Tafoya ...Kelly M. Urso(4) ...Jason Yap ...Directors and executive...

  • Page 11
    ... on our Web site, at the address and location specified above. A copy of the code of ethics is also available in print to stockholders and interested parties without charge upon written request delivered to our Corporate Secretary at Travelzoo Inc., 590 Madison Avenue, 37th Floor, New York, NY 10022...

  • Page 12
    ... title, job description, and geographic location of similarly situated executives. The most significant aspects of the CEO's role in the compensation determination process are evaluating employee performance, establishing business performance targets, goals and objectives and recommending salary and...

  • Page 13
    ... the quarter and no single customer accounts for more than 17% of the Company's worldwide consolidated revenues for the quarter. The Company's Annual Operating Budget relates to the Company's operations in North America, is set at the beginning of the year by the CEO and provides quarterly targets...

  • Page 14
    ... met AND there are no more than two Significant Customers AND no Significant Customer accounts for 17% or more of Worldwide consolidated revenue for the quarter ...Worldwide operating income target for the quarter met ...Worldwide subscriber target for the quarter met ...Total maximum Performance...

  • Page 15
    ... executives to execute a release in order to receive severance benefits; and • the change in control and severance provisions help retain key personnel during rumored or actual acquisitions or similar corporate changes. Compensation Committee Report The information contained in this report...

  • Page 16
    ... review and discussions, the Compensation Committee recommended to the Company's Board of Directors that the CD&A be included in this proxy statement on Schedule 14A. Compensation Committee Ralph Bartel (Chairman) Kelly M. Urso Compensation Committee Interlocks and Insider Participation During 2008...

  • Page 17
    ... on June 18, 2008. Prior to June 18, 2008, Ms. Tafoya served as Senior Vice President of Sales. (8) Amount consists of discretionary bonuses earned per the terms of Mr. Holger Bartel's employment agreement. (9) Amount consists of a $1,500 bonus payment made to all employees of the Company as of the...

  • Page 18
    ... the year ended December 31, 2008: Option Awards Number of Shares Value Realized Acquired on Exercise on Exercise(1) (#) ($) Name Ralph Bartel ... 35,000 266,950 (1) Represents the amounts realized based on the difference between the market price of Travelzoo Inc. stock on the date of exercise...

  • Page 19
    .... Furthermore, Mr. Lee agreed to not, directly or indirectly, perform services for, or engage in, any business competitive with the Company or solicit the Company's customers or employees during the term of his employment and for a period of one year thereafter. Mr. Christopher Loughlin entered...

  • Page 20
    ... sales of advertising on the Travelzoo Web site and the Top 20 newsletter; such commission is capped at $42,878, 1.0% of the Company's net advertising revenues in the second quarter of 2003. In addition, Ms. Tafoya is entitled to participate in or receive such benefits under the Company's employee...

  • Page 21
    ... at the meeting. The Audit Committee has not yet selected our independent registered public accounting firm for our 2009 fiscal year. The Audit Committee annually reviews the performance of our independent registered public accounting firm and the fees charged for their services. This review has not...

  • Page 22
    ... stockholder residing at an address to which only one copy was mailed. Requests for additional copies, or requests for a single copy to be delivered to a shared address should be directed to Investor Relations, Travelzoo Inc., 590 Madison Avenue, 37th Floor, New York, New York 10022 or by telephone...

  • Page 23
    ... vote. All shares represented by proxies received in time to be counted at the Annual Meeting will be voted. Your cooperation in giving this your immediate attention will be appreciated. RALPH BARTEL Chairman of the Board of Directors 590 Madison Avenue, 37th Floor New York, New York 10022 20

  • Page 24
    ... as reported on the NASDAQ Global Select Market, was $54,518,441. The number of shares outstanding of the Registrant's Common Stock as of February 28, 2009 was 16,443,828. DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant's Proxy Statement for its 2009 Annual Meeting of Stockholders are...

  • Page 25
    ... Corporate Governance of the Registrant ...Item 11. Executive Compensation ...Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Item 13. Certain Relationships and Related Transactions, and Director Independence ...Item 14. Principal Accountant...

  • Page 26
    ... and online travel agency Web sites. In January 2009, we purchased the domain name fly.com for $1.8 million. Fly.com launched in beta in February 2009. More than 1,000 companies purchase our advertising services, including American Airlines, Avis Rent A Car, British Airways, Harrah's Entertainment...

  • Page 27
    ... principal business office is located at 590 Madison Avenue, 37th Floor, New York, New York 10022. Travelzoo is controlled by Ralph Bartel, who held beneficially approximately 66.3% of the outstanding shares as of February 28, 2009. The Company was formed as a result of a combination and merger of...

  • Page 28
    ... to advertise their sales and specials to millions of Internet users. Our publications include the Travelzoo Web sites, the Travelzoo Top 20 e-mail newsletter, and the Newsflash e-mail alert service. We operate SuperSearch, a pay-per-click travel search tool and the Travelzoo Network, a network of...

  • Page 29
    ...20 Newsflash SuperSearch Travelzoo Network Web sites in the U.S., Australia, Canada, China, France, Germany, Hong Kong, Japan, Spain, Taiwan, and the U.K. listing thousands of outstanding sales and specials from more than 1,000 travel and entertainment companies Popular e-mail newsletter listing...

  • Page 30
    ...co.jp, www.travelzoo.com.au, www.travelzoo.com.hk, www.travelzoo.com.tw, www.travelzoo.co.uk, www.travelzoo.de, www.travelzoo.com.es, www.travelzoo.fr, among others), our Travelzoo Top 20 newsletter, Newsflash, our SuperSearch search tool, the Travelzoo Network, and our Fly.com search engine provide...

  • Page 31
    ... 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 2008, we began testing outdoor brand advertising campaigns in Las Vegas and New York. In addition...

  • Page 32
    ... meta-search engines and online travel deal publishers. We also compete with large online travel agencies like Expedia and Priceline that also offer advertising placements. In addition, we compete with newspapers, magazines and other traditional media companies that operate Web sites which provide...

  • Page 33
    ...co.jp, travelzoo.com.au, travelzoo.com.tw, travelzoo.co.uk, travelzoo.de, travelzoo.fr, travelzoo.org, travelzoo.net, weekend.com, and weekends.com, among other domain names, and have registered "Travelzoo" as a trademark in the United States, Canada, the EU, and in various countries in Asia Pacific...

  • Page 34
    ... stockholders of Travelzoo.com Corporation who failed to submit requests for shares in Travelzoo Inc. within the required time period; and • volatility of our operating results in new markets. We may significantly increase our operating expenses related to advertising campaigns for Travelzoo...

  • Page 35
    ... advertising their offers with us and we are unable to replace them with new clients, our business may be adversely affected. To be successful, we must provide online marketing solutions that achieve broad market acceptance by travel companies. In addition, we must attract sufficient Internet users...

  • Page 36
    ... factor among providers of online advertising opportunities, and we believe it could become more important as competition in our industry increases. In order to maintain and build brand awareness, we must succeed in our marketing efforts. If we fail to successfully promote and maintain our brand...

  • Page 37
    ..., including both formal and de facto standards relating to online advertising; • developments and changes relating to the Internet; • competing products and services that offer increased functionality; and • changes in travel company and Internet user requirements. If we are unable to timely...

  • Page 38
    ... or maintain market share and operate profitably. We face intense competition. We compete for advertising dollars with large Internet portal sites, such as America Online, MSN and Yahoo!, that offer listings or other advertising opportunities for travel companies. These companies have significantly...

  • Page 39
    ...our business could be materially adversely affected. We do not carry general liability insurance. Claims may be asserted against us relating to shares not issued in our 2002 merger. The merger of Travelzoo.com Corporation into the Company became effective on April 25, 2002. Stockholders of Travelzoo...

  • Page 40
    ...100% of the requests from 1998 were valid, former stockholders of Travelzoo.com Corporation holding approximately 4,068,000 shares had not submitted claims under the program as of December 31, 2008. Our internal controls over financial reporting may not be effective, and our independent auditors may...

  • Page 41
    ... America operations, including offices in Chicago, Illinois, Las Vegas, Nevada, Los Angeles, California, Miami, Florida, Mountain View, California, San Francisco, California, and Toronto, Canada. We also have leased offices for our Europe operations in various cities and locations in France, Germany...

  • Page 42
    ...16.60 $24.73 $28.67 On February 28, 2009, the last reported sales price of our common stock on the NASDAQ Global Select Market was $5.56 per share. As of February 28, 2009, there were approximately 124,000 stockholders of record. Dividend Policy Travelzoo has not declared or paid any cash dividends...

  • Page 43
    ...stock price performance. 1200 1000 DOLLARS 800 600 400 200 0 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 TRAVELZOO INC. Measurement Point 12/31/2003 NASDAQ MARKET INDEX 12/31/2005 12/31/2006 S&P 500 PUBLISHING 12/31/2007 12/31/2008 12/31/2004 Travelzoo Inc. NASDAQ Market...

  • Page 44
    ...: 2008 Year Ended December 31, 2007 2006 2005 (In thousands, except per share data) 2004 Revenues...Income from operations ...Net income (loss) ...Net income (loss) per share - basic...Net income (loss) per share - diluted ...Shares used in per share calculation - basic ...Shares used in per share...

  • Page 45
    ...Travelzoo. In 2008, we began development of Fly.com, a travel search engine that enables users to find and compare the best flight options from multiple sources, including airline and online travel agency Web sites. More than 1,000 travel and entertainment companies purchase our advertising services...

  • Page 46
    ... undelivered as of the reporting date. The Company uses prices stated on its internal rate card for measuring the value of delivered and undelivered placements. Fees for variable-fee advertising arrangements are recognized based on the number of impressions displayed or clicks delivered during the...

  • Page 47
    ... what our sales and marketing expenses as a percentage of revenue will be in future periods. Increased competition in our industry may require us to increase advertising for our brand and for our products. Increases in the average cost of acquiring new subscribers (see "Subscriber Acquisition" below...

  • Page 48
    ... of our e-mail publications in North America, Europe, and Asia Pacific as of December 31, 2008 and 2007 and the total number of page views for the homepages of the Travelzoo Web sites in North America, Europe, and Asia Pacific for the years ended December 31, 2008 and 2007. Management considers page...

  • Page 49
    ... (i.e. Travelzoo Web sites, Travelzoo Top 20 newsletter, Newsflash, SuperSearch, and Travelzoo Network) and is attributed to an increase in our advertising rates for our existing products, an increase in the number of clients, an increase in the volume of advertising sold, and new product offerings...

  • Page 50
    ... Web sites. The goal of our advertising campaigns was to acquire new subscribers for our e-mail products, promote SuperSearch and increase brand awareness for Travelzoo. For the years ended December 31, 2008, 2007, and 2006, advertising expenses accounted for 60%, 67%, and 70% respectively, of sales...

  • Page 51
    ... stock price. Subscriber Acquisition The table set forth below provides for each quarter in 2006, 2007, and 2008, an analysis of our average cost for acquisition of new subscribers for our Travelzoo Top 20 newsletter and our Newsflash e-mail alert service for our North America, Europe, and Asia...

  • Page 52
    ... increasing average cost per acquisition of a new subscriber ("CPA") over the last few years, driven by a gradual increase in online advertising rates by our media suppliers as well as increased activity from competitors using similar forms of online advertising for their own marketing efforts. The...

  • Page 53
    ... to decreased revenue from our publications which included the Travelzoo Web site, Travelzoo Top 20 newsletter, and Newsflash, decreased revenue from SuperSearch and decreased spending from certain clients, offset by the addition of new clients and increased revenue from Travelzoo Network. In North...

  • Page 54
    ... Web sites, and a $714,000 increase in advertising to acquire new subscribers for our e-mail products. The $2.4 million increase in general and administrative expenses was due primarily to an $873,000 increase in salary and employee related expenses, a $444,000 increase in rent and office expenses...

  • Page 55
    ... January 2009, the Internal Revenue Service issued a Notice of Proposed Adjustment contesting the Company's tax deductions in 2005 and 2006 related to the program under which the Company made cash payments to people who established that they were former stockholders of Travelzoo.com Corporation, and...

  • Page 56
    ... shares of common stock totaling $28.6 million. Our capital requirements depend on a number of factors, including market acceptance of our products and services, the amount of our resources we devote to development of new products, cash payments to former stockholders of Travelzoo.com Corporation...

  • Page 57
    ... main elements: • Replicate our business model in selected foreign markets in Asia Pacific and Europe; and • Expand the scope of our business model. In 2007, we began development of the Travelzoo Network, a network of third-party Web sites that list travel deals published by Travelzoo. In 2009...

  • Page 58
    ...be adopted by the Company in the first quarter of 2009 for intangible assets acquired thereafter. Item 7A. Quantitative and Qualitative Disclosures About Market Risk We believe that our potential exposure to changes in market interest rates is not material. The Company has no outstanding debt and is...

  • Page 59
    ...Statements and Supplementary Data TRAVELZOO INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm...Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated Statements of Stockholders' Equity and Comprehensive Income...

  • Page 60
    ... OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Stockholders Travelzoo Inc.: We have audited the accompanying consolidated balance sheets of Travelzoo Inc. and subsidiaries (Travelzoo Inc.) as of December 31, 2008 and 2007, and the related consolidated statements of...

  • Page 61
    ......Deferred rent, less current portion ...Commitments and contingencies Stockholders' equity: Preferred stock, $0.01 par value per share (5,000 shares authorized; none issued)...Common stock, $0.01 par value per share (40,000 shares authorized; 14,285 and 14,250 shares issued and outstanding at 2008...

  • Page 62
    TRAVELZOO INC. CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, 2008 2007 2006 (In thousands, except per share amounts) Revenues ...Cost of revenues ...Gross profit ...Operating expenses: Sales and marketing ...General and administrative ...Total operating expenses ...Income from ...

  • Page 63
    TRAVELZOO INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) Common Stock Shares Amount Additional Paid-In Retained Capital Earnings (In thousands) Accumulated Other Total Comprehensive Stockholders' Income (Loss) Equity Treasury Stock Balances, December 31, 2005 ...

  • Page 64
    ...Tax benefit of stock option exercises ...Accrued income for short-term investments ...Net foreign currency effects ...Changes in operating assets and liabilities: Accounts receivable ...Deposits ...Prepaid expenses and other current assets ...Accounts payable ...Accrued expenses ...Deferred revenue...

  • Page 65
    ... www.travelzoo.fr, among others), the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, the SuperSearch pay-per-click travel search tool, and the Travelzoo Network, a network of third-party Web sites that list deals published by Travelzoo. In 2008, the Company began development...

  • Page 66
    ...Advertising revenues are principally derived from the sale of advertising in North America on the Travelzoo Web site, in the Travelzoo Top 20 e-mail newsletter, in Newsflash, from SuperSearch, and from the Travelzoo Network. Revenues generated from the Company's operations in Europe and Asia Pacific...

  • Page 67
    ... undelivered as of the reporting date. The Company uses prices stated on its internal rate card for measuring the value of delivered and undelivered placements. Fees for variable-fee advertising arrangements are recognized based on the number of impressions displayed or clicks delivered during the...

  • Page 68
    ... the capitalized cost of internal-use software and Web site development, including software used to upgrade and enhance its Web site and processes supporting the Company's business in accordance with Statement of Position 98-1, "Accounting for the Cost of Computer Software Developed or Obtained...

  • Page 69
    ... the assets. Estimated useful lives are 3 to 5 years for computer hardware and software, capitalized internal-use software and Web site development costs, and office equipment and office furniture. The Company depreciates leasehold improvements over the term of the lease or the estimated useful life...

  • Page 70
    ...2006, respectively. In the years ended December 31, 2008 and 2007, respectively, approximately $2.4 million and $410,000 of advertising services was purchased from the Company's clients under non-barter agreements and recorded in sales and marketing expense. In the year ended December 31, 2006 there...

  • Page 71
    ... an adverse effect on our business in 2009, as was the case in the last recession when travel companies reduced or postponed their online marketing spending. In addition, in the year ended December 31, 2008, one of the Company's customers accounted for 13% of revenues. The loss of this significant...

  • Page 72
    ...$- (3) Commitments and Contingencies The Company leases office space in Australia, Canada, China, France, Germany, Hong Kong, Japan, Spain, the U.K., and the U.S. under operating lease agreements which expire between March 31, 2009 and January 31, 2014. Rent expense was $4.6 million, $2.6 million...

  • Page 73
    ...former stockholders of Travelzoo.com Corporation, the Company intends to assert that their rights to receive their shares expired two years following the effective date of the merger, as provided in the merger agreement. The Company also expects to take the position, if escheat or similar claims are...

  • Page 74
    ...2007 were as follows (in thousands): December 31, 2008 2007 Accrued compensation expense ...Accrued advertising expense ...Accrued professional services expense ...Accrued payments to third-party partners of the Travelzoo Network ...Other accrued expenses ... ...$2,235 ...1,598 ...484 ...308 ...337...

  • Page 75
    ...110,000 was recorded in stockholders' equity for the tax benefit of stock option exercises. Income tax expense for the years ended December 31, 2008, 2007 and 2006 differed from the amounts computed by applying the U.S. federal statutory tax rate applicable to the Company's level of pretax income as...

  • Page 76
    ... deferred tax assets ...$ (465) 624 The Company has a valuation allowance of approximately $7.8 million as of December 31, 2008 related to foreign net operating loss carryforwards of approximately $29.9 million for which it is more likely than not that the tax benefit will not be realized. If not...

  • Page 77
    ... Tax Board of California for the 2004 and 2005 tax years and is currently under examination by the Internal Revenue Service ("IRS") for the 2005 and 2006 tax years. In January 2009, the IRS issued a Notice of Proposed Adjustment contesting the Company's tax deductions in 2005 and 2006 related to...

  • Page 78
    ..., 2004, the Company ceased issuing shares to the former stockholders of Travelzoo.com Corporation, and no additional shares are reserved for issuance to any former stockholders, because their right to receive shares has now expired. On April 25, 2004, the number of shares reported as outstanding was...

  • Page 79
    ...the U.K. Asia Pacific consists of the Company's operations in Australia, China, Hong Kong, Japan, and Taiwan. The Company began operations in Europe in May 2005 and began operations in Asia Pacific in April 2007. Management relies on an internal management reporting process that provides revenue and...

  • Page 80
    ...18% The agreements with these customers are in the form of multiple insertion orders from groups of entities under common control, in either the Company's standard form or in the customer's form. (9) Employee Benefit Plan The Company maintains a 401(k) Profit Sharing Plan & Trust (the "401(k) Plan...

  • Page 81
    ...in the Consolidated Balance Sheets. This amount was paid to the Foundation in February 2008. Certain employees of the Company provide administrative support to the Foundation at no cost to the Foundation. Such support to date has been insignificant. (11) Unaudited Quarterly Information The following...

  • Page 82
    ... December 31, 2008. The effectiveness of Travelzoo's internal control over financial reporting as of December 31, 2008 has been audited by KPMG LLP, Travelzoo's independent registered public accounting firm, as stated in their report which appears in Part II, Item 8 of this Annual Report on Form 10...

  • Page 83
    ... as Vice President of Business Development since 2001. From 1999 to 2001, he was Chief Operating Officer of Weekends.com. Mr. Loughlin holds a BSc(Hons) in Technology Management from Staffordshire University and an MBA from Columbia University Graduate School of Business in New York City. Max Rayner...

  • Page 84
    ...Statement relating to our 2009 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of our fiscal year ended December 31, 2008, which is incorporated herein by reference. Item 14. Principal Accountant Fees and Services Information regarding principal accountant fees...

  • Page 85
    ... are filed as part of this report: (1) Our Consolidated Financial Statements are included in Part II, Item 8: Page Report of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated Statements of Stockholders' Equity...

  • Page 86
    ... of the Board March 16, 2009 /s/ Chief Executive Officer March 16, 2009 /s/ WAYNE LEE Wayne Lee /s/ DAVID J. EHRLICH David J. Ehrlich Chief Financial Officer March 16, 2009 Director March 16, 2009 /s/ DONOVAN NEALE-MAY Donovan Neale-May /s/ KELLY M. URSO Kelly M. Urso Director March 16...

  • Page 87
    .... 1 to Employment Agreement, effective as September 23, 2008, by and between Travelzoo Inc. and Wayne Lee (Incorporated by reference to Exhibit 99.2 on Form 8-K (File No. 000-50171), filed September 29, 2008) 10.15* - Service Agreement between Travelzoo Inc. and Thian Seng (Jason) Yap dated February...

  • Page 88
    Exhibit Number Description 23.1‡ 24.1 31.1‡ 31.2‡ 32.1†32.2†- Consent of Independent Registered Public Accounting Firm - Power of Attorney (included on signature page) - Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Certification ...

  • Page 89
    ...INC. Subsidiaries Jurisdiction Travelzoo Travelzoo Travelzoo Travelzoo Travelzoo Travelzoo Travelzoo (Asia Pacific) Limited ...(Australia) Pty Limited ...(Canada) Inc...(China) Limited...(Europe) Limited ...(Hong Kong) Limited ...Kabushiki Kaisha ... ... Hong Kong Australia Canada Hong Kong United...

  • Page 90
    ... each of the years in the three-year period ended December 31, 2008, and the effectiveness of internal control over financial reporting as of December 31, 2008, which report appears in the December 31, 2008 annual report on Form 10-K of Travelzoo Inc. /s/ KPMG LLP Mountain View, California March 16...

  • Page 91
    ... summarize and report financial information; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. /s/ HOLGER BARTEL Holger Bartel Chief Executive Officer Date: March 16, 2009

  • Page 92
    ...process, summarize and report financial information; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. /s/ WAYNE LEE Wayne Lee Chief Financial Officer Date: March 16, 2009

  • Page 93
    ... the accompany Annual Report on Form 10-K (the "Report") of Travelzoo Inc. for the period ended December 31, 2008, the undersigned...Executive Officer Date: March 16, 2009 The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of this Report...

  • Page 94
    ...with the accompany Annual Report on Form 10-K (the "Report") of Travelzoo Inc. for the period ended December 31, 2008, the undersigned ...Officer Date: March 16, 2009 The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of this Report...

  • Page 95
    Investors Relations: Travelzoo Inc. ATTN: Investor Relations 590 Madison Avenue 37th Floor New York, NY 10022 Web site: www.travelzoo.com/ir