CASE ANALYSIS For KAYAK
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KayakMergesWithSideStep.docKayak Merges With SideStep
Everson, Darren. Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Dec 2007: B.4.
Abstract
Consumers won't notice a difference by looking at the sites, Kayak Chief Executive Steve Hafner says, but by combining content and technology, the company will be able to make SideStep's interface work faster, and Kayak, which has been focused on perfecting the search process, will have access to SideStep travel guides, hotel reviews and downloadable tool bar.
Full Text
Kayak.com and SideStep.com, two popular travel-search Web sites, plan to merge, a deal that promises to give consumers access to more- comprehensive rates and availability data.
The merger of the closely held companies will close today, according to Kayak officials. Financial terms of the deal weren't disclosed. Kayak says the merger will make it the fifth-largest travel site in search volume.
Kayak and SideStep are "meta" travel sites that search hundreds of travel Web sites, including airlines, hotels and sites like Orbitz.com. Kayak says there is less than 10% overlap among Kayak and SideStep users. SideStep will become a subsidiary of Kayak, but Kayak will maintain and develop each site separately.
Consumers won't notice a difference by looking at the sites, Kayak Chief Executive Steve Hafner says, but by combining content and technology, the company will be able to make SideStep's interface work faster, and Kayak, which has been focused on perfecting the search process, will have access to SideStep travel guides, hotel reviews and downloadable tool bar.
Users will be able to make broader searches internationally because the sites will combine travel partners. Although Kayak and SideStep have much the same roster of airlines and hotels domestically, Mr. Hafner says, there is significant variance internationally. Analysts aren't convinced the deal will greatly benefit consumers -- or Kayak. The market appears to have plateaued, says Henry Harteveldt, an analyst with Forrester Research Inc., noting that 12% to 15% of online leisure travelers use meta sites, roughly the same share as in 2006.
Everson, D. (2007, Dec 21). Kayak merges with SideStep. Wall Street JournalRetrieved from https://search-proquest-com.proxy.devry.edu:5443/docview/398995622?accountid=44759
