Travelzoo 2012 Annual Report Download - page 60

PART I
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.
Item 1. Business
Overview
Travelzoo Inc. (the “Company” or “Travelzoo”) is a global Internet media company. We inform over 26 million subscribers in North
America, Europe and Asia Pacific, 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, entertainment, and local businesses with a fast, flexible, and cost effective way to reach millions of consumers. Our
revenues are generated primarily from advertising fees. In Asia Pacific, the Travelzoo business is operated by Travelzoo (Asia) Limited and
Travelzoo Japan K.K. under a license agreement with Travelzoo Inc. and is not owned by the Company.
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 iPhone and Android applications, 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 addition, we operate Local
Deals
and Getaway services, which allow our subscribers to purchase vouchers for deals from local businesses such as spas, hotels and
restaurants through the Travelzoo
website and mobile applications. Voucher promotional offers 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.
In 2009, we sold 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 iPhone and Android applications in Asia Pacific, 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. There is a reciprocal revenue-sharing agreement among the entities operating the Travelzoo business in Asia
Pacific and the Company related to cross-selling audiences, channels and offers.
More than 2,000 companies use our services, including Air New Zealand, Apple Vacations, British Airways, Harrah's Entertainment,
Expedia, Fairmont Hotels and Resorts, Hilton Hotels, Interstate Hotels & Resorts, Key Tours International, Liberty Travel, Marriott Hotels,
Royal Caribbean, Spirit Airlines, Starwood Hotels & Resorts Worldwide, Travelocity, United Airlines, and Virgin Atlantic.
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