PPC marketing costs to rise for online travel companies?

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 |  Includes: CD, GOOG, IAC, PCLN, TZOO, YHOO
by: David Jackson

ClickZ reports that travel search engine Kayak.com is planning a large advertising campaign for early next year, in which it will purchase pay-per-click ads from Google and Overture.


According to the article, Kayak will bid for 1,000 keywords by
January, 3,000 by February and 20,000 by the end of the first quarter.
Kayak won't disclose its advertising budget, but says it's "a
considerable amount more than other meta-search companies".

This is negative for the established online travel players for two
reasons. First, Kayak is competing more aggressively and will probably
gain market share. Second, it's advertising campaign will contribute to
upward price pressue for travel-related keywords. Good for Google and
Overture, bad for the travel Web sites.