Monday, April 14, 2008

All the fun of the Farecast...

The Seattle Post Intelligencer is reporting that Farecast has been sold for $75m (£38m at today’s exchange rate).

The buyer is currently not known. The report suggest Expedia as ‘one natural choice’. Expedia told the paper that it doesn’t comment on rumour and speculation, as we all know by now.

Farecast positions itself slightly differently from other travel2.0 businesses. It datamines historic pricing data from a number of partner sites to let customers know if the current price offered is likely to go up or down. Its air fare tool is well established, its hotel channel still in beta.

The business has an impressive line-up of VC backers, as reported by Travolution’s US correspondent last year.

Farecast’s model is an interesting one, and with intelligent search being such a buzzword at the moment it'll be interesting to see who has taken it over. $75m/£38m is an interesting price point – spare change for someone like Google, well within the range of someone like Amadeus, maybe a punt too far for someone like TUI Travel plc.

Martin Cowen, chief writer, Travolution

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