Can a giant search engine shake up an entire industry?
Few think of Google as a travel destination but that’s beginning to change, as the search giant is adding hotel links to its Maps applications and adding room rates available to some users.
“Google also is reportedly in talks to pay $1 billion to acquire ITA Software, which develops fare-shopping software for online travel agencies, airlines and fare-search-only sites, such as Bing Travel and Kayak,” reported USA Today.
Is it a threat to other travel sites?
The simple answer from analysts is that Google is interested in providing information but not offering bookings. Google relies on advertising revenue from online travel agencies and has said in the past it doesn’t want to engage in transactions
Google declined to comment to USA Today about the acquisition talks. But, says Google spokeswoman Victoria Katsarou: "We always have travel in mind. We’re trying to make it easier for our users."
But the potential acquisition, if completed, "would be a game changer and a clear signal of Google’s interest in travel," says Steve Kaufer, CEO of TripAdvisor.
Norm Rose, president of Travel Tech Consulting, says Google will likely rely on other sites for buying tickets. "If you hear that it’s bad news for online travel agencies, it’s premature," he said.
But if Google moves to offer fare results, it could threaten shopping sites that similarly provide only fares. "It could be difficult for sites like Kayak to maintain competitiveness," Rose says.
“Travel search companies like Kayak should be scared. Kayak, like Google, is also a media company, sharing information in hopes of gaining eyeballs and selling space to advertisers,” writes BNET.
But Google has more users, can speak 41 languages and already has the home court advantage for most anyone using the Web. “Anyone competing with Google as a search engine is going to fail miserably, much less a niche travel search engine. If Google continues its dominance in travel, it will make Kayak and all sites like it obsolete,” the site says.
Studies show that a majority of travelers, up to 60 percent, start their planning with a search engine. So Google’s move can’t be a total surprise to travel-only sites.
Google has some catching up to do. Microsoft bought a company called Farecast two years ago and used its software to create Bing Travel, a subdivision of its search engine, Bing.
What might Google do?
If they acquire ITA, one possibility: they might integrate travel information with pre-existing products like Google Maps, Google Calendar. That alone would make a difference for travelers.
By David Wilkening
David
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