Travelzoo 2010 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2010 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.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

• difficulties in developing, staffing and simultaneously managing foreign operations as a result of distance,
language and cultural differences;
• stringent local labor laws and regulations;
• currency exchange rate fluctuations;
• risks related to government regulation; and
• potentially adverse tax consequences.
We may not be able to continue developing awareness of our brand names.
We believe that continuing to build awareness of the Travelzoo and Fly.com brand names is critical to
achieving widespread acceptance of our business. Brand recognition is a key differentiating 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, incur significant expenses in promoting our brand and fail to generate
a corresponding increase in revenue as a result of our branding efforts, or encounter legal obstacles which prevent
our continued use of our brand name, our business could be materially adversely affected.
Our business may be sensitive to events affecting our advertisers in general.
Events like disturbances in the Middle East are likely to have a negative impact on the travel industry. Events
like the recent recession or further financial crisis are likely to have a negative impact on travel, entertainment and
local companies. We are not in a position to evaluate the net effect of these circumstances on our business. In the
longer term, our business might be negatively affected by financial pressures on travel, entertainment and local
companies. However, our business may also benefit if travel, entertainment and local companies increase their
efforts to promote special offers or other marketing programs. If such events result in a long-term negative impact
on the travel, entertainment and local companies, such impact could have a material adverse effect on our business.
We will not be able to attract advertisers or Internet users if we do not continually enhance and develop
the content and features of our products and services.
To remain competitive, we must continually improve the responsiveness, functionality and features of our
products and services. We may not succeed in developing features, functions, products or services that advertisers
and Internet users find attractive. This could reduce the number of advertisers and Internet users using our products
and materially adversely affect our business.
We may lose business if we fail to keep pace with rapidly changing technologies and advertiser 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 our advertisers. 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 advertiser 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.
14