Articles tagged “cheapflights”

Nothing ventured, nothing gained. Kayak won't be opening any new hotels near you, but still hopes to make a go of building a hotel tech business. That, too, could be a big challenge.

The big lesson here is that digital first is the future.

The Momondo Group knows it has to spend big to catch up with the competition. Its growth caught the attention of the Priceline Group, which will be hoping the acquisition, if approved by regulators, will help boost its European metasearch operation.

The acquisition of the Momondo Group is the Priceline Group's largest since buying OpenTable -- and subsequently having to take a write down -- in 2014. Through the acquisition, Kayak gets a strong brand in parts of Europe and ensures that no other rivals step in to take Momondo away from it.

It's clear there is going to be further consolidation in online travel in Europe after Ctrip swooped in and acquired Skyscanner. Momondo would be a nice addition – not a game-changer for Kayak – and a deal could happen if the number-crunchers on both sides have a meeting of the minds.

Momondo Group looks like it is working out some of the duplication from the 2011 merger of Cheapflights and its Danish rival, Momondo.

Momondo Group is still a relatively small fish in a big pond when measured against the larger, global metasearch players. Still, the Group, with its dual-brand approach and increased investment, is obtaining some scale -- 95 million visits during the first quarter of 2016 -- and is becoming part of the conversation.

Building an online flight business, with all of the inherent complexities, is very difficult work. Expedia Inc. is going to throw some more money at it, and it can make gains while providing an additional differentiator from Booking.com, which offers lodging only.

Momondo Group is now controlled by Great Hill Partners, which has a track record in taking companies public. That is a possible exit strategy for Momondo Group, although with Skscanner's valuation dwarfing Momondo's, the latter still has a long way to go.

There is definitely something to be said for hand-picked, curated airfare deals, and The Flight Deal is finding a niche. How much the site expands beyond the FlyerTalk crowd is another question.