Travelzoo 2009 Annual Report Download - page 39

We may lose business if we fail to keep pace with rapidly changing technologies and client needs.
Our success is dependent on our ability to develop new and enhanced software, services and related products to
meet rapidly evolving technological requirements for online advertising. Our current technology may not meet the
future technical requirements of travel and entertainment companies. Trends that could have a critical impact on our
success include:
• rapidly changing technology in online advertising;
• evolving industry standards, 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, entertainment company, and Internet user requirements.
If we are unable to timely and successfully develop and introduce new products and enhancements to existing
products in response to our industry’s changing technological requirements, our business could be materially
adversely affected.
Our business and growth will suffer if we are unable to hire and retain highly skilled personnel.
Our future success depends on our ability to attract, train, motivate and retain highly skilled employees. We
may be unable to retain our skilled employees, or attract, assimilate and retain other highly skilled employees in the
future. We have from time to time in the past experienced, and we expect to continue to experience in the future,
difficulty in hiring and retaining highly skilled employees with appropriate qualifications. If we are unable to hire
and retain skilled personnel, our growth may be restricted, which could adversely affect our future success.
We may not be able to effectively manage our expanding operations.
Since the commencement of our operations, we have experienced a period of rapid growth. In order to execute
our business plan, we must continue to grow significantly. As of December 31, 2009, we had 193 employees. We
expect that the number of our employees will continue to increase for the foreseeable future. This growth has
placed, and our anticipated future growth will continue to place, a significant strain on our management, systems
and resources. We expect that we will need to continue to improve our financial and managerial controls and
reporting systems and procedures. We will also need to continue to expand and maintain close coordination among
our sales, production, marketing, IT, and finance departments. We may not succeed in these efforts. Our inability to
expand our operations in an efficient manner could cause our expenses to grow disproportionately to revenues, our
revenues to decline or grow more slowly than expected and could otherwise have a material adverse effect on our
business.
Our operations may be adversely affected by changes in our senior management.
On November 18, 2009, the Company entered into an employment agreement with Christopher Loughlin, the
Company’s current Executive Vice President, Europe, under which, effective July 1, 2010, Mr. Loughlin will serve
as the Company’s Chief Executive Officer. Mr. Loughlin will replace Holger Bartel as Chief Executive Officer.
Mr. Loughlin served as the Company’s Vice President of Business Development from 2001 to 2005 and served as
the Company’s Senior Vice President and General Manager, Travelzoo U.K. from 2005 to 2006. Since 2006
Mr. Loughlin has served as the Company’s Executive Vice President, Europe, and has extensive familiarity with the
business and operations of the Company. However, there can be no assurances that these changes in the senior
management of the Company will not have an adverse effect on the business of the Company, temporarily or
otherwise.
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