The threat to established distribution channels from new entrants is set to intensify. Kayak.com, which claims to be the world's largest internet travel search engine, has raised US$11.5 million of financing which it will use partly to fund expansion into Europe this autumn.
While travellers outside North America can already use the service, the company will then operate sites based on specific European languages and currencies. “We will start in UK, Germany and France and see where we go from there”, says a spokeswoman. The financing was led by Accel Partners, a “technology focused” private equity firm with offices in London and California's Silicon Valley.
Paul English, Kayak.com's co-founder and chief technical officer says his company "is eager to reshape the European online travel market in the same way we have improved how Americans search and book travel”. The company, which is based in Norwalk, Connecticut, is expected to announce an appointment to head its London operation next month.
Kayak.com claims to be increasing its traffic by 25% a month. It trawls more than 100 travel sites providing prices and itineraries for hundreds of airlines, more than 115,000 hotels and all leading rental car companies. It has just launched a "flexible search" function designed to help users with flexible travel plans find the lowest air fare.
They can now search up to three days before and after their preferred dates for the best fare and itinerary combination. The technology also enables them to specify the class they want to fly in and the number of route stops they are prepared to make.
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