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Kayak was created by the founders of the popular travel sites Orbitz, Travelocity, and Expedia. Apparently their non-compete agreements are up because the built the mother of all travel sites.
What they do is aggregate all of the data and search for the best deals every time a user submits a request. My wife used them recently for a trip to Las Vegas ( a girls weekend out thing) and she saved close to $150 once the hotel and car rental was factored in.
Here are a couple of snippets from their website so you can get an idea on who they are:

What we are not. is not a travel agency. With a travel agency, you pay a fee to get an airline reservation, a hotel room or a rental car. There are no fees with We do not sell airline tickets or hotel rooms or rental car reservations. Instead, we direct you to other travel sites where you can make these purchases directly. Our way of helping you plan your travel gives you a more comprehensive list of your travel options. Really fast. And with no biases or hidden agenda. In short, you are in control of your travel choices. Since we search hundreds of travel websites (including travel agency sites), you now have to search only one:
What we are. is an excellent example (some would say the poster child) for Web 2.0. We are considered a meta-search engine and that means our website searches hundreds of other websites in real time for the best travel deals available. lets you look at a full range of airlines, hotels and car rental agencies quickly and efficiently based on the exact criteria you select. We have put a lot of thought into the design of our website, and it has won accolades from consumers and the press alike (2006 Forbes Best of the Web for example) because of its simple, straightforward design and ease of use. Building a better travel search product is what we are about here at

Source: Save some Money on Travel with Kayak - by Dumb Little Man

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