Travelzoo 2010 Annual Report Download - page 30

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Forward-Looking Statements
The information in this Report contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements are based upon current expectations, assumptions, estimates and projections about Travelzoo Inc. and our
industry. These forward-looking statements are subject to the many risks and uncertainties that exist in our operations and
business environment that may cause actual results, performance or achievements of Travelzoo to be different from those
expected or anticipated in the forward-looking statements. Any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. For example, words such as “may”, “will”, “should”,
“estimates”, “predicts”, “potential”, “continue”, “strategy”, “believes”, “anticipates”, “plans”, “expects”, “intends”, and
similar expressions are intended to identify forward-looking statements. Travelzoo’s actual results and the timing of
certain events could differ significantly from those anticipated in such forward-looking statements. Factors that might
cause or contribute to such a discrepancy include, but are not limited to, those discussed in this Report in Part I Item 1A
and the risks discussed in our other Securities and Exchange Commission (“SEC”) filings. The forward-looking
statements included in this Report reflect the beliefs of our management on the date of this Report. We undertake no
obligation to update publicly any forward-looking statements for any reason, even if new information becomes available
or other events or circumstances occur in the future.
PART I
Item 1. Business
Overview
Travelzoo Inc. (the “Company” or “Travelzoo”) is a global Internet media company. We inform over 22 million
subscribers worldwide, as well as millions of website users, about the best travel, entertainment and local deals available
from thousands of companies. Our deal experts source, research and test-book offers, recommending only those that
meet Travelzoo’s rigorous quality standards. We provide travel companies, entertainment companies, and local
businesses with a fast, flexible, and cost effective way to reach millions of consumers. Our revenues are generated
primarily from advertising fees.
Our publications and products include the Travelzoo websites (www.travelzoo.com, www.travelzoo.ca,
www.travelzoo.co.uk, www.travelzoo.de, www.travelzoo.es, www.travelzoo.fr, among others), 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 third-party websites that list deals published by
Travelzoo. We also operate Fly.com, a travel search engine that allows users to quickly and easily find the best prices
on flights from hundreds of airlines and online travel agencies. In August 2010, we launched Local Deals, a new
service that allows our subscribers to purchase vouchers for deals from local businesses such as spas and restaurants
through the Travelzoo website. Vouchers are redeemable at the local businesses during the promotional period. We
receive a percentage of the face value of the voucher from the local businesses.
On October 31, 2009, we completed the sale of our Asia Pacific operating segment to Azzurro Capital Inc. and its
wholly-owned subsidiaries, Travelzoo (Asia) Limited and Travelzoo Japan K.K. The results of operations of the Asia
Pacific operating segment have been classified as discontinued operations for all periods presented. We have not had
significant ongoing involvement with the operations of the Asia Pacific operating segment and have not had material
economic interests in the Asia Pacific operating segment since the completion of the sale. Starting November 1, 2009, the
Travelzoo websites in Asia Pacific (cn.travelzoo.com, www.travelzoo.co.jp, www.travelzoo.com.au,
www.travelzoo.com.hk, www.travelzoo.com.tw, among others), the Travelzoo Top 20 e-mail newsletters in Asia
Pacific and the Newsflash e-mail alert service in Asia Pacific have been published by Travelzoo (Asia) Limited and
Travelzoo Japan K.K., under a license agreement with the Company. See Note 11 to the accompanying consolidated
financial statements.
More than 2,000 companies use our services, including American Airlines, Avis Rent A Car, British Airways,
Harrah’s Entertainment, Expedia, Fairmont Hotels and Resorts, Interstate Hotels & Resorts, JetBlue Airways,
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