Hotel Direct Program

2Copyright 2003 © Travelzoo Inc.

Travelzoo Drives Sales Directly to Hotel Partners

Travelzoo publishes Travelzoo.com and the Travelzoo Top 20 Newsletter, directing over 4.5 million users to the best travel sales and specials available online and off with the primary goal of driving traffic, leads and ultimately sales DIRECTLY to the sites or phones of travel suppliers.

Travelzoo Hotel Direct Program

• The goal of Travelzoo’s hotel direct program is to help hotels and resorts fill rooms in a very short period of time for specific need periods

• Each hotel offer is promoted for one week through destination-focused placements on Travelzoo’s website and delivered to over a million users through Travelzoo’s Top 20 Newsletter

• All leads/sales are driven directly to advertiser’s web site or call center for booking

About Travelzoo Users*

• Travelzoo users spend over $5 billion in travel each year

• 93% of Travelzoo users purchased Hotel/Lodging in the last year

• 59% purchased over three leisure vacations involving hotel stays in the last year

• Travelzoo stimulates true incremental demand: Over the last year, 32% of users who purchased travel through advertisers on Travelzoo.com “did not plan to go on a trip, but the offer was too good to pass up.”

* Source: Travelzoo Subscriber Study, February 2003

Over 4.5 Million Travelzoo Users

200+ Suppliers and Travel Agents

Website and Newsletter Direct Consumers to Suppliers

3Copyright 2003 © Travelzoo Inc.

Hotel Direct Programs Gives Hotel Advertisers Access to Millions of Travel Consumers with Each Promotion

Program Objective

Help individual hotels/resorts quickly promote limited time offers to over a million consumers and ultimately drive bookings for specific need periods.

Rates and Placements

$5,000 Program includes one hotel offer promoted through:

• 1 million Top 20 e-mails

• 1 week in destination specific premium position

• 1 week Travelzoo destination search results

Program Execution

• Hotel provides travel offer specifics to Travelzoo

• Travelzoo producer provides editorial assistance

• Approval of advertiser’s offer by Travelzoo editorial team required to execute campaign

Travelzoo provides production services for posting offers to both website and Top 20 Newsletter

Travelzoo Top 20 Newsletter• Respected by subscribers as a trusted, independent

source of aggregated and endorsed “best of the best” travel specials

• Hotel offer emailed to 1 million subscribers

• Stimulates incremental and base volume sales

Travelzoo Website• Premium positions highlight advertiser as one of the

top hotel offers to users, who are actively browsing hotels by location

• Travelzoo search field generates results by specified destination

• Premium positions default to the top positions of each relevant search results page

4Copyright 2003 © Travelzoo Inc.

Hotel Direct Programs Gives Hotel Advertisers Access to Millions of Travel Consumers with Each Promotion

Program Objective

Help individual hotels/resorts quickly promote limited time offers to over a million consumers and ultimately drive bookings for specific need periods.

Rates and Placements

$7,500 Program includes one hotel offer promoted through:

• 1.5 million Top 20 e-mails

• 1 week in destination specific premium position

• 1 week Travelzoo destination search results

Program Execution

• Hotel provides travel offer specifics to Travelzoo

• Travelzoo producer provides editorial assistance

• Approval of advertiser’s offer by Travelzoo editorial team required to execute campaign

Travelzoo provides production services for posting offers to both website and Top 20 Newsletter

Travelzoo Top 20 Newsletter• Respected by subscribers as a trusted, independent

source of aggregated and endorsed “best of the best” travel specials

• Hotel offer emailed to 1.5 million subscribers

• Stimulates incremental and base volume sales

Travelzoo Website• Premium positions highlight advertiser as one of the

top hotel offers to users, who are actively browsing hotels by location

• Travelzoo search field generates results by specified destination

• Premium positions default to the top positions of each relevant search results page

5Copyright 2003 © Travelzoo Inc.

Travelzoo Drives Results for Hotel Advertisers

Potomac Hospitality Services:Kia Sechrist, Corporate Director of Sales, explained, “Travelzoo has been a tremendous success for our properties in Washington, D.C. and Philadelphia, so much so that we are finalizing an annual agree-ment. We had to fully staff our reservations office when the Top 20 e-mail went out – the phones just wouldn’t stop ringing. We continue to receive bookings today from the offer in January and look forward to many more.”

Over 200 Travel Suppliers Trust Travelzoo, Including Top Industry Brands

94%Advertiser Renewal

Rate!

Hilton New York: “Travelzoo has provided the hotel community with a channel to market the most advantageous kind of business possible… incremental business,” said Christopher R. Perry, Director of Sales and Marketing. “Travelzoo has successfully identified a value savvy customer that takes full advantage of fantastic travel opportunities.”

Crowne Plaza Royal Palms, Miami: “Travelzoo has helped us book room nights during distress periods within a short booking window directly online and through the hotel which has also given our reservation team the opportunity to up-sell view rooms and suites,” notes Bill Wagner, Director of Sales and Marketing.

Fairmont Hotels & Resorts: “Travelzoo’s value is in its loyal subscriber base which views the site as a consumer advocate for value-based travel. The fact that Travelzoo attracts high earners makes the site not only an incremental distribution tool for fairmont.com, but also a branding tool to increase awareness of the Fairmont brand among this valuable audience,” said Jens Thraenhart, Director of Internet Strategy.

6Copyright 2003 © Travelzoo Inc.

Travelzoo Drives Results for Hotel Advertisers

Hilton Head Hotel: Participated in a one week inclusion on website and in Top 20, which drove over 300 room nights.

Over 200 Travel Suppliers Trust Travelzoo, Including Top Industry Brands

94%Advertiser Renewal

Rate!

Las Vegas 5-Star Hotel:Needed to fill additional room nights for summer months. Placement on Travelzoo website and Top 20 inclusion generated over 2,000 room nights within a one week period.

New York City Boutique Hotel:Needed help getting occupancy levels up for upcoming dates. Travelzoo hotel direct program helped them fill 1,292 room nights.

San Francisco Hotel:Needed help with a last minute weekend. Travelzoo was able to help fill 750 rooms within a 3 day period.

Scottsdale, AZ 4-Star Resort:Promoted a luxury spa getaway for upcoming dates. Promoted a $199 spa package and was able to fill over 250 room nights within the week.