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META SEARCH SAILS INTO CRUISE CATEGORY

By: Gregory Saks

April 1, 2007


In an apparent coincidence, the two biggest Meta Search sites entered the cruise category at nearly the same time, when Kayak and Sidestep both launched cruise search products in January. Sidestep partnered with NLG's CruisesOnly brand to power its site, while Kayak launched a custom-developed search product. Can Meta Search help increase the slow growth of online cruise bookings? Of the two Meta Search products, which is generating greater consumer interest?

metasearch cruise trends Sidestep and Kayak are now the two biggest players in Meta Search, each attracting more than 3 million U.S. online visitors monthly. While other brands have emerged, these newcomers have yet to approach Kayak and Sidestep’s scale.

To date, the performance of both meta search cruise products have been comparable. Just over 1% of the visitors to each site entered the cruise section. The market opportunity is much greater; a significant percentage of Kayak and Sidestep visitors research cruises off-site. In December 2006, 12% of Sidestep's user base was actively in market for a cruise, with Kayak’s user base at 11.5%.

For the 1% of consumers that enter into the Meta Search cruise product categories, activity levels were high. 70% to 80% of cruise prospects submitted a cruise search, and 20% to 30% actually select a specific cruise.

Takeaways:
Both sites are generating comparable performance. Sidestep's strategy was likely easier to implement, but the NLG backbone may limit flexibility for future enhancements. Kayak, meanwhile, has built what appears to be a true cruise Meta Search platform. Similar to their hotel & air search products, Kayak’s cruise product enables advanced filtering and navigation of inventory from multiple providers. The initial investment may have been greater in Kayak's case, but should also provide more flexibility for managing the product’s evolution.

Which implementation makes more sense? It ultimately depends on the future of the online cruise category. The early edge goes to Sidestep, given the currently limited online cruise market. Long term, however, if online cruise bookings take off, Kayak may be better positioned with a flexible, proprietary tool.

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