Business Evalation

Business Evalation

A technology company focused on making online travel better
A technology company focused on making online travel better
IEOR 4550 Spring 2013
IEOR 4550 Spring 2013
Feb. 2013
Feb. 2013
Jeremy Bernier, Jingxuan Li, Zhuran Jiao
Jing Wang, Kevin Wheeler, Xiaolu Yan

Jeremy Bernier, Jingxuan Li, Zhuran Jiao
Jing Wang, Kevin Wheeler, Xiaolu Yan

KAYAK Software Corporation
KAYAK Software Corporation

Group Member Contributions:

Business Concepts |

| |
| |
| |
| |
| |
| |
| |
| |

Market Dynamics |

Figure   [ 1 ]-Taken from IBISWorld
Overview of Customers and Consumers | Kayak is part of an industry of fare aggregators and travel metasearch engines.  Other examples of travel metasearch engines include: Google Flights, Cheapflights.com, Mobissimo.com, etc.   Kayak’s main customers are the online travel agents (Priceline, Expedia, etc.).  This is because Kayak is paid to bring the website’s user to the online travel agent.  They also have advertising revenue from Featured Advertisements on the sidebar.

The main users of Kayak’s website are people who are searching for the cheapest flight and prefer not to pay for the more personalized service of brick-and-mortar travel agencies.  These are people who are looking for their airfare and hotels irrespective of brand loyalty-programs.  This probably means infrequent fliers who will not benefit from airline’s mileage programs.  These users also need discretionary funds for travel. |
History of Market Players and Relationships | The online travel agencies (OTAs) began in the mid-1990s and started taking a bite out of the traditional brick-and-mortar travel agencies as users were able to cut costs by buying through websites.  For example, Expedia was founded by Microsoft in 1996 and then became its own publicly traded company in 1999. After this move to OTAs, Kayak and other companies created metasearch engines to search these online travel agencies.

As a result of...

View Full Essay