The platform was founded in by Steve Hafner and Paul M. English as Travel Search Company, Inc. Through a mobile app and website, users can search Kayak to compare rates between car rentals, flights, and hotels. These included German travel search platform Swoodoo and online travel agency SideStep. In , Kayak was acquired by Booking Holdings — which at the time was known as Priceline. The company also recently launched a corporate travel management platform, allowing business travelers to plan trips more efficiently.
Kayak operates on a CPC model. Popularized by Google, the cost-per-click CPC model invented by goto. Kayak makes money whenever a searcher clicks on an offer on its platform. Here, the advertiser in question pays Kayak a small fee. The exact fee is dependent upon the agreement between each party. When a user both clicks on an advertisement and then makes a purchase, the advertiser must also pay a cost-per-acquisition CPA fee. Financial market data powered by Quotemedia.
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Great analysis though : Read More. Hi, just a moment back I was searching for the information on the same topic and now I am here. There are several factors that go into how we list results after you start a search. It can be a combination of information like price and traveler ratings. For flights, we even pick up on elements that can affect your comfort, like duration and stops.
Looking for the lowest price? We can make that happen. Sometimes, the same deal will be available on several provider sites. All of these providers are made visible for you to choose from, but we highlight one main provider based on things like customer popularity or ratings. Providers can also become highlighted if they pay more for the clicks they get. Select personalised ads.
Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Travelers who utilize travel search engines and fare aggregators such as Kayak may well wonder, since Kayak's services are free to consumers, how such companies make money. Kayak earns money through advertisements, when it refers customers to online travel companies and other partner providers, and through additional commissions.
Since that time, Priceline has changed its name to Booking Holdings. Today, Kayak operates seven international brands and offers its site in more than 20 languages worldwide. Kayak provides consumers with travel information and rates on vacation packages, flights, hotels, rental cars, and other travel services by offering information collected from travel suppliers and travel agencies. The company handled approximately two billion inquiries on travel through more than 60 websites, as of Co-founder and CEO Steve Hafner had already helped launch another similar travel service website, Orbitz, in , before going on to create Kayak in The primary business model shift that Hafner made when setting up Kayak was to cease providing information and actual ticket sales.
Kayak was set up more like a search engine for the best prices, since it doesn't directly handle sales transactions of travel services. Instead, it refers Kayak users to other websites to complete transactions.
At the same time, Kayak did away with transaction fees, which were common to other travel service sites; effectively, Kayak became free-to-use for the customer. The streamlined information-only business model made Kayak's website users less likely than those of Orbitz to look elsewhere for lower rates.
It also reduced Kayak's operating costs , making it more financially efficient. Not handling transactions requires less work and fewer employees, and it has virtually eliminated the need to provide customer service to Kayak website users. Kayak's two primary sources of revenue are distribution and advertising. The company also generates revenue alongside other Booking Holdings subsidiaries through various types of commissions.
Kayak's true customers aren't the users who go to its website to search for deals on travel, but the travel companies, such as Delta Airlines DAL or Hertz Global Holdings Inc.
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