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Monday 17-Jan-2011

Google-ITA deal sparks protests from OTAs

Google bought ITA Software, the company that offers fares comparison, for $ 700 Million

By  Traveltechie Bureau | Mumbai

Google’s proposed acquisition of software firm, ITA has some online players so alarmed that even competitors have formed an alliance to campaign against it as per a report in New York Times. The acquisition, if approved, would let Google, the dominant search engine, digest ITA, which was founded in the 1990s by computer scientists at the Massachusetts Institute of Technology and has become the leading provider of flight data to airlines, travel agents, global distribution systems, flight comparison sites and technology companies. 

This fall, a coalition that included Expedia and Kayak formed FairSearch.org to push regulators to thwart the deal. Microsoft recently joined the cause. Kayak, in registering to file its initial public offering, suggested that a combined Google-ITA could present a risk to its business. Orbitz has stated publicly that it is neutral on the deal. Priceline, in a public filing , cited Google as a risk factor, while its president suggested at a telecommunications conference that Google’s entry into vertical travel search could be an opportunity.

Others are taking a wait-and-see approach. This deal has the potential to greatly impact the robust online air travel search and booking markets relied on today by millions of consumers.