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Priceline.com acquires Kayak for $1.8B

244 points| goatcurious | 13 years ago |thenextweb.com

125 comments

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[+] casca|13 years ago|reply
Kayak and Hipmunk get a lot of praise for their UI but if you want to use a hacker interface for finding flights, http://matrix.itasoftware.com/ is the way to go.

It's not as pretty, but is incredibly feature-rich, not limited to the US and regularly finds me prices that are significantly cheaper than anyone else.

[+] spez|13 years ago|reply
FYI - you can access most of ITA's routing language on Hipmunk, if you type :: after an airport code. The advantage of using us is we can make you a booking link to actually purchase the itinerary.
[+] mherdeg|13 years ago|reply
It was a sad, sad day when they shut down the old http://matrix1.itasoftware.com/ interface. It was much more keyboard accessible with faster navigation between inputs, and the forward and back buttons always did exactly what I expected. Also really miss the "weekend search". It was a really great service, but I guess it wasn't exactly making them money.
[+] koeselitz|13 years ago|reply
Kayak, Hipmunk, Google Flights, Orbitz, and almost every other aggregator licenses ITA Software's system, actually. And most major airlines use it internally. It's good enough that it's pretty much the de facto standard and framework.
[+] scotth|13 years ago|reply
Have you tried out Google Flights? I've been told it's based on this same technology, and has a much better UI.

And be sure to click around. It has some interesting tools, like prices for flights to your destination flown out of nearby airports.

[+] smattiso|13 years ago|reply
Relative volatility of KYAK was 3x the normal amount during the day. The news was released after hours. Long live insider trading!
[+] makmanalp|13 years ago|reply
Or, it could be that they were releasing their Q3 financials today.
[+] nazgulnarsil|13 years ago|reply
Insider trading sends important price signals to the market. The alternative is LESS information.
[+] 3327|13 years ago|reply
agree 100% its an epidemic.
[+] taumeson|13 years ago|reply
Fun fact: Both are located in Norwalk, CT., about a 5-10 minute ride from each other. Priceline is located almost on the Darien border and Kayak is nestled in South Norwalk (SoNo). I gotta believe this proximity lead to board member and executive coziness.
[+] makmanalp|13 years ago|reply
Fun fact #2: Founders are co-founders of travelocity, expedia and orbitz. It's a tightly knit yet competitive biz :)
[+] hluska|13 years ago|reply
I can't escape the feeling that that fun fact is why stories like these have hit the wires:

http://zlkdocs.com/KYAK-Info-Request-Form-463

To save you from reading that document, a law firm has decided to 'investigate' whether Kayak's board "breached their fiduciary duties to stockholders by failing to adequately shop the Company before entering into this transaction and whether priceline.com Incorporated is underpaying for Kayak shares, thus unlawfully harming Kayak stockholders."

Another firm has announced it is conducting another investigation (http://finance.yahoo.com/news/block-leviton-llp-investigates...). Not sure if it relates to whether or not Kayak adequately shopped around the company....

[+] antoko|13 years ago|reply
Kayak is great (was?) but Hipmunk is more than up to the task of filling the void if Priceline ruin Kayak.

Congrats to the Kayak folks I guess, when they got into the industry they really raised the bar.

Before Kayak I remember having to use Expedia and Orbitz and just having to accept their crappy UI because there simply were no alternatives.

[+] jobu|13 years ago|reply
Hopefully Priceline will learn some improvements from Kayak and not try to force changes the other direction. Kayak has a great UI overall, but the explore interface is pure awesome: http://www.kayak.com/explore/
[+] TillE|13 years ago|reply
I see Hipmunk still doesn't track budget airlines in Europe (eg, EasyJet).

Which makes it fairly useless to me, and absolutely not a replacement for Kayak.

[+] bduerst|13 years ago|reply
Hipmunk has a much better interface, and considering it's also an aggregator, much better at helping me quickly find flights or hotels.
[+] bmelton|13 years ago|reply
I was getting ready to say almost the exact same thing -- thank heavens that Hipmunk came when it did, or that acquisition (if soured) would have left a very large hole in my travel-making tools.

I don't particularly like Kayak, but as a matter of effectiveness, there's no doubt that it was pretty much king of the hill for a good long while. Since Hipmunk's inception though, it has definitely been the 'go-to' place for travel-planning, and beats the nearest competition (that I've used) by a mile.

I would also venture to say that this was perhaps a timely exit for Kayak, as the more and more traction Hipmunk sees, the less off the Kayak founders would have been for an exit.

[+] photorized|13 years ago|reply
I don't like any of the existing travel sites, so even had to write one for friends and family (we like pick a random place and just go):

http://www.somewherenice.net/

This was put together over several weekends, so don't be too harsh on me. :)

[+] zalew|13 years ago|reply
I'm working on a travel (many)weekend(s) project myself yet to launch, so I won't be too harsh, but... :P I put Warsaw in, and the suggested airports were Okecie (correct) and Babice (it's in Krakow), Modlin was missing. And all the result were in the USA. I like the design theme with all the backgrounds etc. and the logo, cool idea. You should leave some way to contact you with feedback on the page. Keep on, good luck.
[+] jngreenlee|13 years ago|reply
I like it, I've been looking for something like this. Some features (dreaded feature creep!) I'd love:

1. Map interface with little lines from my home base airport to the possible destinations - It's just fun to see. 2. Sliders to increase/decrease budget - Dynamically adding/removing routes as I change the $$ limit.

Maybe these would only take another weekend to add? </joke>

[+] dude_abides|13 years ago|reply
Just 4 months after IPOing and right after reporting record earnings! It looks like they perfectly timed it right at their peak.
[+] daakus|13 years ago|reply
I hope this doesn't kill the current best UX that hides the junk in this industry.
[+] duck|13 years ago|reply
There is always http://hipmunk.com, which I think has the best UX of any of them (although maybe it is lacking some features, but none I would use anyhow).

Edit: Doh, fixed the link!

[+] FaceKicker|13 years ago|reply
Pretty tangential, but why is it that none of the flight search engines include Southwest? I realize that Southwest doesn't give their fare info to whoever the other airlines give it to, but what's stopping someone from just scraping southwest.com every hour or so for the current fares? Or even if scraping is against their TOS, couldn't they hire one data entry employee to manually go through and add Southwest's flights every day? Or is it somehow illegal to publish Southwest's prices?

I imagine it would be a big competitive advantage for whichever one did it first - it's pretty annoying how every time I want to search for flights I have to first search on Kayak/Hipmunk/GoogleFlightSearch and then separately go to southwest.com and wade through their slow, awful search interface.

[+] calbear81|13 years ago|reply
Southwest does not believe in distributing their fares through the metasearch or OTA channel. They want to own the customer and make sure there's only one destination to book Southwest fares and that is Southwest.com and it's worked out pretty well for them.

The hard part for scraping is that it's both against their TOS and you wouldn't be able to have accurate availability and price information through manual data entry. The nature of how frequent price changes and the number of possible combinations of fare types/routes/availability is what gave rise to companies like ITA.

[+] smackfu|13 years ago|reply
From the Kayak IPO S-1:

In particular, for the nine months ended September 30, 2010, Expedia and its affiliates, including its Hotels.com and Hotwire subsidiaries, accounted for 25% of our total revenues. Also during this period, Orbitz and its affiliates, including its CheapTickets and ebookers subsidiaries, accounted for 19% of our total revenues.

I guess Priceline wants to get a first shot at all that business, and then to get paid by their competitors for bookings they don't get.

[+] photorized|13 years ago|reply
I am curious what their contracts with all these parties looked like... Booking providers seem to like exclusivity.

Btw, anyone from Travelocity here? Would love to share some feedback about your platform.

[+] colinsidoti|13 years ago|reply
In recent times, Kayak has been shifting to push customers directly to airlines and hotels, instead of pushing them through online travel agencies like Priceline.

I suspect this is Priceline admitting that it (and other OTAs) are losing relevance in preference for the meta-search model.

Smart move, and I don't think they're dumb enough to ruin it. Read up on how successful Priceline was with their Booking.com acquisition.

[+] colinsidoti|13 years ago|reply
Also, I wouldn't be surprised if we see another OTA scoop up Hipmunk soon while it's (relatively) cheap.
[+] riviera|13 years ago|reply
Sad day today. I hope they don't touch it!
[+] dbecker|13 years ago|reply
I'm not remotely worried about priceline ruining kayak.

Kayak was the best interface before hipmunk, and it may (or may not be) the best interface now.

But there will be more improvements in travel buying interfaces... whether those improvements come from kayak or someone else, Kayak's current interface will seem kludgy in a couple years.

[+] edouard1234567|13 years ago|reply
That's really bad news for Expedia. When you book a hotel room directly on Kayak, over 90% of the bookings go through expedia and hotels is where these travel agencies make most of their money. (Not airfares, they have become a commodity, thanks to Kayak :) )
[+] gordonbowman|13 years ago|reply
I think this is a great acquisition by Priceline. They are going for market share here to get ahead of Expedia et al.

A big part of their growing business is in Europe via Booking.com, so with Kayak they beef up their market share here in the U.S. in a big way.

[+] yawgmoth|13 years ago|reply
Since everyone seems to be putting in their 0.02$ on which sites they use for booking, bing.com/travel is also very good. The buy-wait prediction is fantastic.
[+] antonpug|13 years ago|reply
Great. Now Kayak will become a hell of a lot more "biased". Priceline does not give nearly as good of results as Kayak.
[+] fouadz|13 years ago|reply
Anyone can explain me where they get all the deal ?