Travelzoo 2008 Annual Report Download - page 31

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•Increase Number of Advertising Clients. We intend to continue to grow our advertising client base by
expanding the size of our sales force. See “— Sales and Marketing” below.
•Excellent Service. We believe that it is important to provide our advertising clients with excellent service.
•Replicate Business Model in Foreign Markets. We believe that there is an opportunity to replicate our
business model in selected foreign markets. We believe that there will be an additional market opportunity
for us. In addition, we believe that we would strengthen our strategic position if we offered global advertising
solutions to existing and new clients.
Clients
As of December 31, 2008, our client base included more than 1,000 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
Avis Rent A Car Kimpton Hotels
British Airways Liberty Travel
Budget Rent A Car Lufthansa
CheapTickets 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
Hilton Hotels Vanguard Rent-A-Car
InterContinental Hotels Group Virgin Atlantic
As discussed in Note 8 to the accompanying consolidated financial statements, one client accounted for 10% or
more of our total revenues during the years ended December 31, 2008, and two clients each accounted for 10% or
more of our total revenues during the years ended December 31, 2007 and 2006. No other clients accounted for 10%
or more of our total revenues during the years ended December 31, 2008, 2007, or 2006. 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, 2008, our advertising sales force and sales support staff consisted of 48 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 2008, 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 scalable manner.
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