Orbitz Worldwide said it would pursue "legal remedies" to address travel search engine Kayak.com’s decision to take hotel bookings on its website through a partnership with the Travelocity Partner Network, in addition to other issues.
Until now, Kayak’s model has been to transfer users to online agencies or hotel supplier websites for purchases.
First reported on Tnooz.com, Orbitz said in a statement, "Orbitz is pursuing legal remedies to address Kayak’s promotion of certain travel information from other online travel websites in Kayak’s air, hotel and other paths. Orbitz believes these promotions violate Kayak’s contractual obligations to Orbitz. We are confident that our contractual terms will be enforced through these channels."
Brian Hoyt, Orbitz’s vice president of communications and government affairs, would not elaborate on the statement, but said it referred to Kayak's new hotel-booking capability and "other" issues.
It is likely that Orbitz is referring to its arbitration case with Kayak.
In August 2010, Kayak said in an IPO registration document that Orbitz initiated arbitration with Kayak in New York, contending that Kayak had violated a 2009 promotion agreement by failing to abide by exclusivity provisions relating to the display of certain core query results on its websites.
Kayak further wrote that it has maintained a strategic relationship with Orbitz since 2004, and that under the terms of its agreement that ends Dec. 31, 2013, Orbitz provides Kayak with full access to its travel information and pays Kayak for any transactions it sends to one of their websites.
In return, Kayak provides exclusivity to Orbitz relating to the display of certain core query results.
Kayak declined to comment on Orbitz’s statement.