It seems like just yesterday that the travel sector crowned Kayak the undisputed heavyweight champion of price comparison search following their acquisition of SideStep. But wait! It looks like Yahoo has (finally!) unveiled FareChase, the price search engine they acquired back in 2004. On the Yahoo Travel homepage, the Travelocity booking engine is no longer the default search option, it has been re-labeled ‘classic search’ and FareChase is the default search.

Yahoo is a formidable, albeit very delayed, entrant to the price search. It searches more supplier sites then Kayak directly, which presumably leads to better prices for consumers. And Yahoo is the fourth largest travel aggregator, behind only the ‘big three’ of Expedia, Travelocity and Orbitz. Greg at Compete.com estimates that the combined entity (Kayak-SideStep) will attract over 5 million monthly U.S. website (unique) visitors – about 60% of Yahoo’s footprint.

Presumably this brings a new competitive element that Kayak might not have expected (let’s be serious, four years after the acquisition, did ANYONE expect Yahoo to finally launch FareChase?). With their market share, Kayak is in a strong position as the suppliers perceive Kayak to be an important channel in the continued battle with aggregators for market share. But they aren’t the only player anymore, which as Tim at BOOT suggests, would have made it easier to move from a position of strength to an IPO. Perhaps, as Sramana at Seeking Alpha suggests, they might do additional roll-ups on their way to the IPO. On the other hand, Yahoo plunging into this price search is good validation to Wall Street that price search is still important.

Another implication is that a potential operating benefit from the acquisition might not fully accrue for Kayak. Both Kayak and SideStep depended heavily on acquiring consumers through online marketing. Buying SideStep should have allowed Kayak to acquire those consumers more cost efficiently, but having Yahoo-FareChase also competing might make the acquisition costs higher then anticipated.

Stay tuned, it should be an interesting year.