Google expands its ambitions in the travel sector with the acquisition of Ita Software. A $700 million deal that would place Big G in a dominant position also in the field of travel and holidays.
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The news of the intention by Google to acquire Ita Software has shaken the travel world: too much power and a dominant position that Google would gain with its hands on Ita Software.
Why is this last company so strategic, to the point of triggering a joint reaction by large tour operator groups? Simple: Ita Software is a company that collects data related to flights. A supplier of very useful and detailed information boasting a large share of clients precisely among flight search sites. To avoid exclusion from this data or at least to contain the disruptive impact that Google would have by getting involved deeply in travel, a group of companies in the sector decided to ally, joining FairSearch.org, a sort of anti-Google coalition devised by travel industry giants (such as Expedia, Farelogix, Kayak, and Sabre Holdings) to oppose Big G.
The intent is to make an explicit request to the American Department of Justice to block the acquisition, not yet fully completed, of Ita Software. It is discussed in detail on the FullTravel blog.
Microsoft, although interested in the matter since Bing also uses Ita Software data, has withdrawn from forming this alliance, despite having expressed concerns about Google’s operation and openly engaging in legal actions.
On its side, Google states that the acquisition of Ita Software would benefit consumers who could easily and quickly find more information about flights of interest. Conversely, FairSearch fears that direct access to all this valuable information could put Google in a position to limit the availability of this information to former customers of Ita Software. If that were not enough, there is an even greater fear, if possible: that Google uses such data at its own discretion, effectively “guiding” consumers’ choices excessively, controlling travel offers, up to “steering” them according to Google’s own needs.
A hypothesis raised by the major travel agencies grouped in FairSearch that, although today it might seem alarmist, certainly cannot question the fact that it would almost outline a monopoly scenario, not even an oligopoly anymore.
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