Travelzoo 2013 Annual Report Download - page 38

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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.
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.