Travel comparison websites beware
July 5th, 2010 by elisa

Google is going to up the competition in the travel comparison market now that it has bought travel technology company ITA Software in a $700m deal.

ITA provides the technology that drives several airline reservations systems, this could help Google to improve the quality of its search results when people are looking to book flights.

Google chief executive officer Eric Schmidt said: “There is clearly more room for competition and innovation in online travel, we will improve the way flight information is organised.”

Schmidt claimed the biggest winners in this deal would be consumers, and also predicted Google would be able to drive more traffic to airlines and travel agencies.

Travel comparison websites are being warned to seriously re-think their business models in light of this acquisition. Google is initially likely to use the data and technology to drive consumers to different websites, it could progress into selling directly.

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