Google to control travel industry with ITA acquisition
The ITA software product is focused around airline bookings and reservations but it’s easy to see how this could be expanded by Google to include other verticals such as Tours, Car Rental and Hotel bookings. These verticals will likely not be covered under existing agreements which can allow Google to build a new travel portal directly into its search results.
What about Travel Agents?
The travel industry is one of the biggest spenders on Google AdWords so it seems strange that they would risk scaring off the golden goose, unless they have very big plans ahead for their travel product so be warned.
What can business learn from this experience? The first is buy more than just the software platform if its going to be a main part of your future business examine the costs of buying the whole technology and make sure you are entitled to ownership of relevant patents.
It will be surprising if Google does not experience some issues with getting the purchase approved as its far too much data about its competitors business, but if Google doesn’t get the purchase approved to buy ITA Software, will it be Bing, Expedia or even Facebook that swoops it up?
So next time you are searching for your trip to Las Vegas you might not have to ever leave Google to book the entire trip as it is likely that no matter which way the deal goes stay tuned for Google Travel Store opening soon.
I think this acquisition makes it crystal clear that Google has gotten too big and gotten their grubby paws into too many things. It would be insanity if this deal is allowed to go through. I sincerely hope it fails. In the mean time, I’m glad I use Expedia for all my travel booking.