Travelzoo 2014 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 27 million members
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.
We attract a high-quality audience of travel and leisure enthusiasts across multiple digital platforms, including e-mail,
web, social media and mobile applications. We inform our audience about travel, entertainment and local deals available at over
2,000 companies. Over 27 million members receive our e-mail newsletters, published in 11 countries worldwide, including
those in Asia Pacific where our brand is operated under a license. Travelzoo’s website is visited by 9.0 million unique visitors
each month. We reach an audience of over 60 million Internet users each month via the Travelzoo Network, a network of
websites that syndicate our deal content, including The Los Angeles Times and The Chicago Tribune. We have over 2.2 million
followers on Facebook and Twitter. Our mobile applications have been downloaded 3.4 million times.
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. Our Travelzoo websites include Local Deals and Getaway listings that allow our members to purchase vouchers for
deals from local businesses such as spas, hotels and restaurants. We receive a percentage of the face value of the voucher from
the local businesses. 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 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. 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, Expedia,
Fairmont Hotels and Resorts, Hawaiian Airlines, Iceland Air, InterContinental Hotels Group, Interstate Hotels & Resorts, Key
Tours International, Liberty Travel, Princess Cruises, Starwood Hotels & Resorts Worldwide, Travelocity, United Airlines, and
Virgin America.