Travelzoo is one of the top providers of travel and entertainment deals in the world. Our team of Deal Experts from our 25 offices around the world find the best offers, put them through a rigorous and unique testing process and share an edited selection of the most outstanding deals with our global audience of 26 million subscribers.

1. From start up to global leader
Richard Singer, MD Travelzoo Europe
www.travelzoo.co.uk
0

2. How we started
www.travelzoo.co.uk
1

3. Disruptive innovation
Source: Clayton M Christenson: An Innovators Dilemma
www.travelzoo.co.uk
2

4. www.travelzoo.co.uk
3

5. Our goal
“To inspire people every day to jump off the sofa and explore the world”
www.travelzoo.co.uk
4

6. Travelzoo Top 20
www.travelzoo.co.uk
5

7. Our mission
“To be the worlds most trusted source of travel and entertainment deals”
www.travelzoo.co.uk
6

8. 26 million global subscribers
Canada
1.5
U.K.
3.5
U.S.
15m
Germany
1.5
France
0.8
Japan
1.0
Spain
0.7
China*
1.0
Australia
0.7
www.travelzoo.co.uk
7

9. Unique process assures reliability for subscribers and qualified leads for advertisers
Travelzoo Deal Experts across Europe, North America and Asia follow a one-of-a-kind process to bring our
subscribers the most competitive deals in the marketplace and provide our advertisers with high-quality,
high-income active travellers
Research
Evaluate
Test
Producers thoroughly
research the quality and
competitiveness of each
offer
Editorial team evaluates
the strength of an offer
before endorsing it as
outstanding
The Test Booking Centre
test books each offer to
ensure a smooth user
experience and best possible
results for the advertiser
Producers spend more than 1,000 hours researching, checking & validating deals each week
www.travelzoo.co.uk
8

10. Simple but effective model
Publications & Content
• Website, Top 20®, Newsflash™ &
SuperSearch™
• Editorial guidance drives response
Quality Audience
• High income
• Frequent leisure travellers
• Respond to travel ideas with
incremental purchase
• 26 million subscribers worldwide
www.travelzoo.co.uk
9
Branding & bookings
• Companies take bookings directly via
their website or reservation/call centre
• Proven results across all travel
segments
• Over 2,000 advertisers

11. Travelzoo is one of the world leading Travel and Entertainment providers
+ NASDAQ listed: TZOO
+ Market Cap $400m
+ 25 offices in 11 countries
+ More than 500 employees
+ More than 2,000 advertisers
+ 100million unique visitors worldwide
+ Over 26m subscribers worldwide
+ 3m social following
+ No. 1 Travel newsletter in the UK and Top 10 travel website
www.travelzoo.co.uk
10

12. Travelzoo: Ansoff Matrix
Existing Products
Existing Markets
New Markets
www.travelzoo.co.uk
New Products
Market Penetration
Product Development
Market Development
Diversification
11

13. Travelzoo: Ansoff Matrix
Existing Products
Existing Markets
New Markets
www.travelzoo.co.uk
New Products
Market Penetration
Product Development
Market Development
Diversification
12

14. Travelzoo: Ansoff Matrix
Existing Products
Existing Markets
New Markets
www.travelzoo.co.uk
New Products
Subscriber
Investment
Search
Newsflash
Local Deals
Getaways
Europe
APAC
Canada
Diversification
13

15. Entrepreneurial culture with disciplined financial approach
May 1998 – Ralph Bartel has 10 subscribers…
1999
2004
www.travelzoo.co.uk
2006
2008
14
2010
2012
2013

16. Entrepreneurial culture with disciplined financial approach
May 1998 – Ralph Bartel has 10 subscribers…
1999
2004
www.travelzoo.co.uk
2006
2008
15
2010
2012
2013

17. Market expansion- due diligence and culture building
+ Selection of a market
+ Find synergies across markets
+ Start simple – build big
LOCAL
+ Build local teams with centralised support
+ Local taxes and employment laws
DRIVE
MARKETS
+ Global and local product development
+ Communication
+ Sympathetic to cultural nuances
NATIONWIDE
GLOBAL
www.travelzoo.co.uk
16

18. We make investments to drive future growth
Annual revenue per subscriber*
US$ per subscriber
Strategic Elements
New growth in the past 2-years:
1. Audience
2010: Local Deals
Grow subscribers but also
mobile users and social
2011: Getaways
2013+: Grow audience and monetisation
$7.17
2. Products
Enhance our products to
search „what‟, „where‟ and
„when‟, particularly on
mobile and particularly for
hotels
Travelzoo
Q3 2012
26 million
Number of
subscribers**
* Defined as annualised year to date revenue divided by # of subscribers at beginning of year.
www.travelzoo.co.uk
17

19. Strategic element 1: Grow and actively engage audience across all media
www.travelzoo.co.uk
18

20. Strategic element 2: Product development investment
www.travelzoo.co.uk
19

21. Strategic element 3: On page optimisation
www.travelzoo.co.uk
20

22. Strategic element 4: Social roll out
www.travelzoo.co.uk
21

23. Strategic element 5: Travelzoo syndication
Travelzoo Network Publishers*
Reach Travel Intenders at all Stages of Travel Purchase Funnel
* Partial list of Network partners
www.travelzoo.co.uk
22

24. Strategic element 5: Travelzoo syndication
www.travelzoo.co.uk
23

25. The Challenge and the Opportunity
www.travelzoo.co.uk
24

26. Travelzoo mobile
Mobile is the fastest growing segment of our business
'Brilliant'
The Independent
34%
of total traffic is via mobile devices
www.travelzoo.co.uk
'Genius'
The Times
'Travel App
of the Week'
The Sunday Times
2,500,000+
app downloads
25
'Consumer app
of the week'
The Guardian
1 sale every 1.5 minutes on
mobile

27. Our mobile products continue to evolve
23 US markets
4 European markets
Covers all sectors of Travel and
Entertainment
Very simple to use
www.travelzoo.co.uk
26

28. Mobile evolution
What has been the impact?
www.travelzoo.co.uk
27

29. Mobile booking experience
www.travelzoo.co.uk
28

30. Mobile booking experience
www.travelzoo.co.uk
29

31. Test Booking Centre Top 20
Hotels
£99 -- Deluxe Cheshire Break w/Dinner & Tickets, Save 50%
£79 -- 'Stylish' London Docklands Hotel w/Extras, 58% Off
£125 -- Isle of Wight Hotel w/Ferry & Dinner, Save 52%
£129 -- Award-Winning Cotswolds Gourmet Stay, Reg £245
£99 -- Historic Dartmoor Manor Stay w/Suite, 40% Off
£98 -- Amsterdam 4-Star Stay w/Upgrade, Was up to £250
£75 -- Central Amsterdam Summer Hotel Stay w/Breakfast
£139 -- Lake District Stay with AA-Rosette Dining, 40% Off
£69 -- Berkshire Hotel with Breakfast & Dinner, 45% Off
£89 -- Dorset Jurassic Coast Hotel w/Meals, up to 48% Off
£84 -- 2-Nt Sicilian Farmhouse Stay, up to 34% Off
£90 -- Lake Stay nr Las Vegas w/Shuttle, up to 43% Off
£75 -- New Orleans: Chic Hotel near French Quarter, 60% Off
£75 -- 'Stylish' Boutique Nottingham Stay w/Dinner, Reg £179
£65 -- Derbyshire: 4-Star Gourmet Stay w/Dinner & Extras
£119 -- Historic Lincolnshire Break w/Michelin-Listed Dining
£169 -- Condé Nast Cotswolds Stay w/Dinner & Fizz, Was £370+
£149 -- Devon Country Escape w/'Exquisite' Dining, Was £330
£89 -- Cotswolds 'Hidden Treasure' w/Wine Tasting, Was £155+
Entertainment
£25 -- Last Chance: Spice Girls Musical Tickets, Was £45
£24 -- 'We Will Rock You' Arena Show in Manchester, Reg £35
£13 -- Newcastle: 'Celebrities on Ice' Arena Show
£15 -- 'Hilarious' Play 'Noises Off' in Glasgow, Save 54%
£19 -- 'Taste of London' Food Festival & Cook Book, Reg £38
Vacation
£329 -- Tenerife: 4-Star Holiday w/Meals, Drinks & Suite
£179 -- Krakow Break at 'Poland's Best Hotel' w/Flights
£299 -- French Pyrenees: Deluxe Castle Escape w/Flights
£349 -- 4-Star Mayrhofen Austrian Alps Wk w/Meals, Was £644
£499 -- Luxury Kos Escape w/Meals, Spa & Sea View, Was £799
£899 -- Oceanfront All-Inclusive Week in Barbados, Save £330
£229 -- Costa Brava: 3-Nt All-Inclusive Break, Save 32%
£689 -- All-Inc Sri Lanka Beach Escape w/Upgrade, Save £330+
£479 -- Red Sea: All-Inc Hilton Week w/Upgrade, Save £150+
£1145 -- NYC, Niagara Falls & Washington DC Tour, Save £364
Air
£68 & up -- Monarch Cuts June Fares to Europe (Return)
£10 & up -- Ends Tuesday: UK & Europe Car Hire Sale
Cruise
£699 -- 7-Nt Dubai Cruise inc Flights, Transfers & Spend
£699 -- Last-Minute 12-Night Baltic Cruise, Was £1389
£779 -- Western Med Fly/Cruise w/7-Night Mallorca Stay
£1599 -- 5-Star Indonesia & Bali Cruise inc Flights & Hotel
www.travelzoo.co.uk
no mobile site
no mobile site
no mobile site
Getaway
Getaway
mobile site, correctly linked, but not working properly
mobile site, but not working properly
Getaway
mobile site, works fine
phone only
Getaway
no mobile site
mobile site, but not working properly
Getaway
no mobile site
Getaway
Getaway
Getaway
Getaway
no mobile site
no mobile site
no mobile site
no mobile site
no mobile site
phone only
phone only
phone only
no mobile site
phone only
phone only
no mobile site
no mobile site
phone only
no mobile site
no mobile site
no mobile site
phone only
phone only
phone only
phone only
30

32. How is this changing our business?
www.travelzoo.co.uk
31

33. The mobile driven evolution of our business
• Advertising to ecommerce
• Product led technology company
• Marketing has had to be adapted to embrace social and mobile channels
• Our content and publishing strategy has been adapted, tested and developed
• Our „deal testing‟ process has been extended
• „Mobile First‟ is a key strategic pillar
• Our KPIs and metrics of success have changed
• We have hired significantly
• We have had to take ownership of the challenge
www.travelzoo.co.uk
32

34. Mobile first publishing
www.travelzoo.co.uk
33

35. Launch of a global hotel collection and booking engine
• Portfolio of hotel properties in all key locations worldwide
• Advanced search functionality
• Our own booking path. Mobile optimized
• Functionality to cross sell and up sell at all stages of the booking path
• Booking technology to expand to different products and different sectors,
www.travelzoo.co.uk
34

36. Evolution and opportunity
www.travelzoo.co.uk
35

37. 6 steps to our success
• Found a winning formula and stuck to our core business
• Kept it simple but very focused
• Exploited the synergies
• Hired locally and gave them the support to succeed
• Evolve quickly, prepare for disruption and be fast
• Continue to deliver on our customer promise
www.travelzoo.co.uk
36

38. Deal quality and subscriber loyalty positions us for future growth
www.travelzoo.co.uk
37

39. Richard Singer
MD Travelzoo Europe
Phone +44 20 7420 0452
Email rsinger@travelzoo.com
www.travelzoo.co.uk
38