Travelzoo 2008 Annual Report Download - page 38

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Please find page 38 of the 2008 Travelzoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Intense competition may adversely affect our ability to achieve 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 greater financial, technical, marketing and other resources and larger client bases. We
compete with search engines like Google and Yahoo! Search that offer pay-per-click listings. We also compete with
travel 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 online advertising opportunities. We
expect to face additional competition as other established and emerging companies, including print media
companies, enter the online advertising market. Competition could result in reduced margins on our services,
loss of market share or less use of Travelzoo by travel companies and consumers. If we are not able to compete
effectively with current or future competitors as a result of these and other factors, our business could be materially
adversely affected.
Loss of any of our key management personnel could negatively impact our business.
Our future success depends to a significant extent on the continued service and coordination of our
management team, particularly Holger Bartel, our Chief Executive Officer. The loss or departure of any of our
officers or key employees could materially adversely affect our ability to implement our business plan. We do not
maintain key person life insurance for any member of our management team. In addition, we expect new members
to join our management team in the future. These individuals will not previously have worked together and will be
required to become integrated into our management team. If our key management personnel are not able to work
together effectively or successfully, our business could be materially adversely affected.
We may not be able to access third party technology upon which we depend.
We use technology and software products from third parties, including Microsoft. Technology from our current
or other vendors may not continue to be available to us on commercially reasonable terms, or at all. Our business
will suffer if we are unable to access this technology, to gain access to additional products or to integrate new
technology with our existing systems. This could cause delays in our development and introduction of new services
and related products or enhancements of existing products until equivalent or replacement technology can be
accessed, if available, or developed internally, if feasible. If we experience these delays, our business could be
materially adversely affected.
Risks Related to the Market for our Shares
Our stock price has been volatile historically and may continue to be volatile.
The trading price of our common stock has been and may continue to be subject to wide fluctuations. During
2008, the sales price of our common stock on the NASDAQ Global Select Market ranged from $4.11 to $17.20. Our
stock price may fluctuate in response to a number of events and factors, such as quarterly variations in operating
results; announcements of technological innovations or new products by us or our competitors; changes in financial
estimates and recommendations by securities analysts; the operating and stock price performance of other
companies that investors may deem comparable to us; and news reports relating to trends in our markets or
general economic conditions.
In addition, the stock market in general, and the market prices for Internet-related companies in particular,
have experienced volatility that often has been unrelated to the operating performance of such companies. These
broad market and industry fluctuations may adversely affect the price of our stock, regardless of our operating
performance.
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