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Google Travel Coming Soon to You

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Google acquisition of ITA Software could mean sweeter deals for you and I

Someone once told me the easiest way to make money online was through pills, porn or casinos (and now social media). But Google's move to acquire travel data provider - ITA Software - may prove that theory wrong. Google's $700 million cash offer may elevate the company's search status from iconic to deity.

ITA Software for TravelITA Software for TravelYou may not recognize ITA Software by name, but if you've booked travel online through a major airline or Hotwire, you'll appreciate how simple it makes life. It's even used by Microsoft's Bing.

Google's bid to purchase the small software company in Cambridge MA built by computer scientists has online travel companies scrambling. Travel aggregators like Kayak will lobby long and hard to prevent Google from gobbling up their share of the online travel pie. And you can bet Microsoft will put up all kinds of roadblocks for their biggest competitor.

Where Google's going

Don't expect a cookie cutter Expedia to emerge from the Google labs. Like everything Google, what happens after the acquisition will likely be a slick full-service booking search engine that will deliver real-time airfares, hotel recommendations (and specials) along with activity suggestions. In short, this acquisition may be just what travelers have been demanding since the invention of the Internet - an easier, cheaper way to search and book travel online.

"While Google claims not to be building a new metasearch tool, comprehensive price aggregation across sites is inevitable. To not introduce it would be a pretty big waste of $700 million," PhocusWright analyst Caroll Rheem said in a blog post.

Online travel generates almost $90 billion in US sales alone so it's no surprise that Google and Microsoft are clamouring for the lion's share. But the real winners of this deal will be you and I. If Google gets better at delivering real time results, we get more competitive pricing - which may mean more opportunities for travel.

Travel with Google?Travel with Google?"We think this combination will benefit travelers as well as those seeking their business, but closer scrutiny has been one consequence of our success, and on that basis we wouldn't be surprised if there were regulatory review before the deal closes," Google said in an FAQ announcing the deal.

Sounds like a win-win to me - especially once the tech-heads at Google get their hands on it. I'll be watching the Google ITA acquisition closely - and hopefully be booking through it in the near future.

What do you use to book travel online? Do you shop around between aggregators or pick one and explore it completely?

We'd love to hear about it here, on Facebook and on Twitter!

 

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Comments

Hi Julia, Love your blog!

Hi Julia, Love your blog! Just a quick correction. ITA does not supply services to Expedia.com or NASADAQ. You can find our list of customers at our web site. Thanks! Cara Kretz VP Corp. Communications ITA Software

Hi Cara, Thanks for

Hi Cara, Thanks for stopping by - and for taking the time to help correct my info - much appreciated! Sounds like you're gearing up for a busy time at ITA - good luck! Julia

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