Facts about Google’s acquisition of ITA Software

On July 1, 2010, Google announced an agreement to acquire ITA Software, a Cambridge, Massachusetts flight information software company, for $700 million, subject to adjustments.

  • Google’s acquisition of ITA Software will create a new, easier way for users to find better flight information online, which should encourage more users to make their flight purchases online.
  • The acquisition will benefit passengers, airlines and online travel agencies by making it easier for users to comparison shop for flights and airfares and by driving more potential customers to airlines’ and online travel agencies’ websites. Google won’t be setting airfare prices and has no plans to sell airline tickets to consumers.
  • Because Google doesn’t currently compete against ITA Software, the deal will not change existing market shares. We are very excited about ITA Software’s QPX business, and we’re looking forward to working with current and future customers. Google will honor all existing agreements, and we’re also enthusiastic about adding new partners.Google Acquisition of ITA Source: Google Press

So what does it means or how is it going to affect Travel suppliers and end users?

Lets learn some facts first: Google, the leader of search engine and ITA, the leader of travel technology has many advantages of this acquisition. Since long time Google was trying to get space in this trillion dollars travel industry. Google started its discussion with Mobissimo for a mutual tie-ups and take mobissimo’s hotel arm to integrate with google’s renowned location based mapping services as Google Map (Read:Google expressed interest in Mobissimo, viewed product demo, launched own hotel maps). Somehow things didn’t go well after months long discussions then they set apart. Google knows the key role of meta searches in today’s travel decision for user and the revenue that can be generated by organizing the business and industry. Travel in one of the industry where the transaction volumes are very high, so a right content and approach can give you a sun shine. For users, its a good news as travel is all about searching for cheap fares or accommodation and who can give you better search capabilities than Google.

One the other hand, meta searches like Kayak, Mobissimo, Sidestep, Bing Travel(AKA Farecast), cheapflights, dohop, wego, fly will have sleepless nights. No companies can compare Google in terms of their brand recognition and trusted search algorithms. Many of these search engines are using ITA powered technologies for their business. So with Google acquisition, one can always expect the cost of technology solutions to these suppliers will increase and at the other end the visitors flow will be shared by the giant.

I am sure this game is going to be a real fun. Lets see what Google have in plates for Travel Suppliers and consumers in near and long term. Lets wait and watch.

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About Administrator
ExploreTrip, Inc. D/B/A www.exploretrip.com based out of California and established as specialized international travel website to help customers to get the best at the cheapest. The ExploreTrip.com platform is a B2C platform offering online consumers the ability to easily shop for international travel at deeply discounted prices. Its intelligent data platform collates, stores and optimizes an unparalleled collection of private fares from all major travel suppliers (air consolidators, hotel aggregators, tour operators) around the world. The platform includes sophisticated, proprietary software engines that optimize and construct “intelligent” itineraries that reduce costs and minimize layovers. The fully managed portal provides user-friendly airfare bookings, and also supports real-time online sales of hotels, travel packages, and other travel related services.

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