Travelocity has signed a contract to renew its partnership with Yahoo. Under the terms of the agreement, Travelocity will remain the exclusive booking provider for all air, car and hotel packaging options, and the new exclusive provider for cruise and vacation packages, available on Yahoo Travel.

The ability to combine the Travelocity and Yahoo networks through the agreement will allow users to view and share content, such as travel reviews posted to both sites, and open the door for additional joint marketing opportunities, the companies said.

The news comes over a year after Yahoo shuttered its travel shopping engine Farechase, which it originally acquired back in July 2004 and re-launched two years later.

The partnership between Yahoo and Travelocity has been standing since 1997, which is like an eternity in Internet years.

Travel is a crowded vertical, but Flickr is a strong asset for Yahoo! to bring into the game. Likewise, Yahoo! Maps doesn’t have to be the ugly step-sibling of Google Maps. It’s a nice system itself and will likely be well received by online travel site users.

I imagine that more things like this are liable to come out of the new practice of holding Yahoo! Hack Day events. Obviously the company has a whole lot to work with. Interesting integrations of multiple applications seem like the lowest hanging fruit.