About Travelzoo

Travelzoo is a global Internet media company. The company provides its 30.3 million members insider deals and one-of-a-kind experiences personally reviewed by one of its deal experts around the globe. The company has its finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. The company has worked in partnership with more than 5,000 top travel suppliers—its long-standing relationships give Travelzoo members access to irresistible deals. Travelzoo attracts a high-quality audience of travel enthusiasts across multiple digital platforms, including email, web, social media and mobile applications. The company’s insider deals and email newsletters are published by Travelzoo and its licensees worldwide. The Travelzoo website is visited by 3.4 million to 6.1 million unique visitors each month. The company also reaches an audience of millions of Internet users each month via the Travelzoo Network, a network of websites that syndicate its deal content, including The Los Angeles Times and The Chicago Tribune. The company has over 3.6 million followers on Facebook, Instagram, and Twitter. The company’s Apple and Android mobile applications have been downloaded 6.9 million times. The company’s publications and products include the Travelzoo website (travelzoo.com), the Travelzoo iPhone and Android apps, the Travelzoo Top 20 email newsletter, the Newsflash email alert service, and the Travelzoo Network. The company’s Travelzoo website includes Local Deals and Getaways listings that allow its members to purchase vouchers for deals from local businesses, such as spas, hotels and restaurants. The company also licenses the use of these products and its intellectual property in various countries in the Asia Pacific, including but not limited to Australia, Japan and Southeast Asia. The company is also the majority shareholder of JFC Travel Group Co. (Jack’s Flight Club), which operates Jack’s Flight Club, a subscription service that provides members with information about exceptional airfares. As of December 31, 2021, the company had 30.3 million members worldwide. In Europe, the unduplicated number of Travelzoo members was 8.4 million as of December 31, 2021. In North America, the unduplicated number of Travelzoo members was 16.9 million as of December 31, 2021. On March 15, 2021, Travelzoo added more than 2 million new members in the U.S. from a direct competitor from Europe exiting the U.S. market. Jack’s Flight Club had 1.8 million subscribers as of December 31, 2021, up 6% from December 31, 2020. More than 5,000 companies use the company services, including Air France, Air New Zealand, Air Tahiti Nui, Alaska Airlines, Cathay Pacific Airways, Club Med, Emirates, Etihad, Exoticca, Fairmont Hotels and Resorts, Gate 1 Travel, Hawaiian Airlines, Hilton Hotels & Resorts, Hyatt Corporation, Icelandair, InterContinental Hotels Group, Lion World Travel, Myrtle Beach Area Conventions & Visitors Bureau, Princess Cruises, Royal Caribbean, Singapore Airlines, Starwood Hotels & Resorts and United Airlines. Revenues from the Travelzoo brand and business are generated primarily from advertising fees from two categories of revenue: Travel and Local. The Travel category consists of advertising or publishing revenues, primarily listing fees paid by travel companies for the publishing of their offers on Travelzoo’s media properties and commission from the sale of Getaways vouchers. Listing fees are based on audience reach, placement, number of listings, number of impressions, number of clicks, and actual sales. For publishing revenue, the company recognizes revenue upon delivery of the emails and delivery of the clicks, over the period of the placement of the advertising. For Getaways vouchers, the company recognizes a percentage of the face value of the vouchers upon the sale of the vouchers. The Local category consists of publishing revenue for negotiated high-quality deals from local businesses, such as restaurants, spas, shows, and other activities and includes Local Deals vouchers and entertainment offers. Jack’s Flight Club revenue is generated from paid subscriptions by members. Subscription options are quarterly, semi-annually, and annually. The company recognizes the revenue monthly pro rata over the subscription period. The company also has licensing arrangements with licensees in Australia, New Zealand, and Southeast Asia; and Japan and South Korea, in each case, where the company is entitled to a quarterly royalty payment based on a percentage of net revenue. Under the licensing agreements, Travelzoo's existing members in the applicable territories will continue to be owned by Travelzoo as the licensor. The company operates through three segments: Travelzoo North America, Travelzoo Europe, and Jack’s Flight Club. Travelzoo North America consists of the company’s operations in Canada and the U.S. Travelzoo Europe consists of the company’s operations in France, Germany, Spain, and the U.K. Jack’s Flight Club consists of subscription revenue from premium members to access and receive flight deals from Jack’s Flight Club via email or via Android or Apple mobile applications. For the year ended December 31, 2021, Travelzoo North America operations were 67% of revenues, Travelzoo Europe operations were 28% of revenues, and Jack’s Flight Club operations were 5% of revenues. Products and Services The company provides airlines, hotels, cruise lines, vacation packagers, other travel suppliers, entertainment and local businesses with a fast, flexible, and cost-effective way to reach millions of Internet users. The company’s publications include the Travelzoo website, the Travelzoo Top 20 email newsletter, the Newsflash email alert service, the Local Deals and Getaways email alert services and Jack's Flight Club newsletter. The company also operates the Travelzoo Network, a network of third-party websites that list deals published by Travelzoo. While its products provide advertising opportunities for travel, entertainment and local businesses, they also provide Internet users with a free source of information on current sales and specials from thousands of travel, entertainment and local businesses. The company’s listing management software allows its advertisers to add, update, and delete special offer listings on a real-time basis. The company’s software also provides its advertisers with real-time performance tracking, enabling them to optimize their marketing campaigns. Mobile advertising extends the company’s products and services by providing mobile-specific features to mobile device users. The company focuses on developing easy-to-use mobile applications to help advertisers extend their reach, help create revenue opportunities for its customers, and delivers relevant and useful ads to users on the go. The company continues to invest in improving users' access to its services through such devices. In addition, the company continues to develop its hotel booking platform, which enables its users to more easily book hotel stays using its hotel deals presented on its website and mobile devices. Audience The company attracts a high-quality audience of travel and leisure enthusiasts across multiple digital platforms, including email, web, social media and mobile applications. The company informs its audience about travel, entertainment and local deals available at over 5,000 companies. The company’s insider deals and email newsletters are published by Travelzoo and its licensees worldwide. Travelzoo’s website is visited by 3.4 million to 6.1 million unique visitors each month. The company reaches an audience of millions of Internet users each month via the Travelzoo Network, a network of websites that syndicate its deal content, including The Los Angeles Times and The Chicago Tribune. The company has over 4.0 million followers on Facebook and Twitter. The company’s mobile applications have been downloaded 6.9 million times. Strategy The company’s growth strategy relies on building a travel and lifestyle brand with a large, high-quality user base and offering its users products that keep pace with consumer preference and technology, such as the trend towards mobile usage by consumers. The key elements of the company’s strategy include building a travel and lifestyle brand with a large, high-quality user base; and offering products that keep pace with consumer preference and technology. Advertisers As of December 31, 2021, the company’s advertiser base included more than 5,000 travel, entertainment and local businesses, including airlines, hotels, cruise lines, vacations packagers, tour operators, destinations, car rental companies, travel agents, theater and performing arts groups, restaurants, spas, and activity companies. Some of the company’s advertisers are Alaska Airlines; DH Travel Services; Entertainment Benefits Group; Exoticca; Fairmont Mayakoba; Gate 1 Travel; Globus Family of Brands; Hawaiian Airlines; Holland America Line; Icelandair (US); Imagine Cruising; Indus Travels Inc.; Jetline Travel; KLM Royal Dutch Airlines; Shutterfly; Silversea Cruises; Stunning Tours; Superchina Holidays; Tourism Ireland; Travel Discounters; Vacation Express USA Corp; and Wingbuddy.com. In 2021, Travelzoo North America operations were 67% of revenues, Travelzoo Europe operations were 28% of revenues and Jack’s Flight Club operations were 5% of revenues. Sales and Marketing The company utilizes online marketing and direct marketing to promote its brand to consumers. In addition, the company utilizes an online marketing program to acquire new members for its email publications. The company utilizes sponsorships at industry conferences and public relations to promote its brands. Competition The company competes for advertising dollars with large Internet portal sites, such as Trip Advisor, which offer listings or other advertising opportunities to travel, entertainment and local businesses. The company competes with companies like Groupon that sell vouchers for deals from local businesses, such as spas, hotels and restaurants and tour operators for vacation packages. The company competes with travel metasearch engines like Kayak.com (owned by Booking Holdings) and online travel and entertainment deal publishers (including online restaurant reservation services). The company competes with large online travel agencies like the Expedia Group and Booking Holdings, as well as thousands of individual travel agencies around the world that also offer advertising placements and hotel booking platforms and capture consumer interest. Government Regulation and Legal Uncertainties Privacy Concerns The European Union adopted the General Data Protection Regulation (GDPR), which became effective in May 2018 and has resulted in greater compliance burdens for companies, including the company, with users in Europe. Additionally, the California Consumer Privacy Act was passed and creates new data privacy rights for users, which became effective in January 2020. Anti-Spam Legislation. The company is also subject to anti-spam laws in the various jurisdictions that it operates, including Canada’s Anti-Spam Legislation. Domain Names The company has registered travelzoo.com, travelzoo.ca, travelzoo.co.jp, travelzoo.com.au, travelzoo.com.tw, travelzoo.co.uk, travelzoo.de, and travelzoo.fr, among other domain names; and has registered Travelzoo as a trademark in the United States, Canada, the European Union, and certain countries throughout the Asia Pacific. Intellectual Property The company’s success depends to a significant degree upon the protection of its brand names, including Travelzoo, Top 20 and Jack's Flight Club. The company relies upon a combination of copyright, trade secret and trademark laws to protect its intellectual property rights. The company has registered the Travelzoo and Top 20 trademarks, among others, with the United States Patent and Trademark Office. The company has registered the Travelzoo and Travelzoo Top 20 trademarks with the Office for Harmonization in the Internal Market of the European Community. The company has registered the Travelzoo trademark in Australia, Canada, China, Hong Kong, Japan, South Korea, and Taiwan. Jack’s Flight Club has registered the Jack’s Flight Club trademark in the United States and the European Union. History Travelzoo, a Delaware corporation, was founded in 1998.