Pricegrabber launches new travel search engineJanuary 6, 2005 Pricegrabber.com launches a travel search engine, a move that could send shockwaves into an industry already in great turmoil. Its expansion into travel reflects the convergence of search engines and travel. So-called metasearch engines search online travel agencies as well as websites of airlines, hotels and car rental agencies.
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 The buzz about metasearch has grown louder since big internet players stepped into the arena, eager to add travel to their portfolio of services that attract users. Yahoo last summer bought metasearch company FareChase while American Online bought a stake in Kayak Software. Both sites are still in test mode. Emergence of start-up metasearch companies, including SideStep and Mobissimo, has already divided the travel industry. But entry of a price-comparison service provider such as Pricegrabber, which has 16m users a month buying goods from electronics to jewellery to cars, could further redraw the rules of the game. Patti Freeman Evans, retail analyst at JupiterResearch, said: “Travel is relatively new [for shopping sites] but something that is top of mind. They all want to grow their traffic and are looking for where the next step might be.” Pricegrabber's travel site is in test mode and currently only has airfares. The company plans to launch a formal site by the end of the first quarter with plans to add hotels and car rentals. “We've been hearing from our users that they wanted to see compelling comparison shopping for travel,” said Kamran Pourzanjani, chief executive. “Our users come to our site to shop across different channels. Now they can shop for travel.”
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 Online comparison shopping has seen rapid growth in recent years with more consumers using the internet to compare features, prices and customer reviews before making a purchase. Pricegrabber's revenue has grown from $52,000 in 1999 to $26.9m in 2003. Google started testing Froogle, its comparison shopping site, in 2002 and Yahoo launched its shopping service in 2003. Travel search is a logical extension of comparison shopping because the average consumer checks three to four websites before booking a flight or hotel room. Source: News FT.com 
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