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AOL Enters Agreement With Kayak Software

WebProNews
Staff Writer
Published: 2004-11-12

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America Online and Kayak Software Corporation, created by the founders of Orbitz, Expedia and Travelocity, announced a multiyear marketing and technology agreement in which AOL will make a minority investment in Kayak.

The two companies will join forces to create a web-based travel search property, which will be powered by Kayak's travel search engine, and will complement AOL's existing offerings.

The announcement comes as the online travel marketplace is experiencing tremendous growth. Forrester Research predicts online sales will hit $119 billion by 2010, up from $52 billion this year. According to PhoCusWright, a vast majority of these purchases will be made with the help of searches, with online consumers shopping an average of 3.6 sites before buying an airline ticket.

"Kayak represents state of the art search technology in travel and we are committed to providing the most comprehensive results possible as we expand the breadth of our travel offerings," said David Lebow, Executive Vice President and General Manager, AOL Media Networks. "Travel is a sizable and growing area and a primary category of focus for AOL Media Networks, especially as we build out our suite of travel products both on the AOL service and the Web."

Steve Hafner, Kayak's CEO and co-founder said, "We are thrilled to be working with AOL to help consumers make the most informed decisions in their travel planning. Both Kayak.com and AOL's products and services are invaluable resources for helping users navigate and manage the wealth of information on the Web. We look forward to a long and successful partnership."

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