SideStep & Kayak Join Forces To Tackle Travel Search

Kayak.com is out to shake up the global travel market, and thanks to a $196 million financing boost, the meta-search firm has nabbed a surprising partner — rival company SideStep.com.

A Kayak subsidiary will merge with SideStep, making Kayak and its affiliate sites the world’s fifth largest travel brand, according to a Dec. 21 release. The partnership will drive more than 33 million searches on Kayak and its affiliates in January 2008, up from 16 million for the same period last year.

How it will work: SideStep will integrate Kayak’s user interface within weeks of the deal’s close, the company shared with TDR. SideStep users will benefit from Kayak’s Fare and Buzz Alerts and airfare history tools while Kayak’s users get SideStep’s tool bar and deals. Once the merger and subsequent integrations are complete, Kayak plans to publish rich travel content such as airport guides and hotel reviews on its results pages.

Though Kayak and SideStep are competitors, “the commercial logic of the deal is obvious,” said Kayak CEO Steve Hafner in the release. “By merging, each brand can improve its offering while continuing to focus on its individual strengths. With less than 10 percent overlap between existing Kayak.com and SideStep.com users, each site stands to gain millions of new users,” he explained.

Next step for Kayak: The meta-search company has its eye on international expansion. Kayak already offers its travel search technology in the UK, France, Germany and Spain, but the merger will add SideStep’s website in Ireland and its European affiliates. Further, Kayak plans to announce several anchor affiliate deals in Europe in the coming months.