18 April 2008

Microsoft gets back into Travel - Buys Farecast

MS still owns a portion of Expedia but its somewhat remote. However, they decided to get back into the Travel game (via their MSN Travel vehicle) and have bought out Farecast.

Congrats to Hugh Cream and his team. This is a good acquisition on both sides and indicates the value of the search proposition now that sector has matured. With Yahoo owning a tool, Kayak and Sidestep as one, the business has the right dynamics.

This may seem to be a conflicting signal with regards to the G2 failure just recently. However I believe that this is just a shifting sands issue.

Underneath all of this is a supply side market that has gone soft. Better distribution and channel management tools are required. Better consumer tools are required. What is missing here is a better infrastructure. Harder problem to solve.



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