Google set to take on the Online Travel Industry

Posted on Apr 28th 2010

Search engine giant, Google is said to be in talks to purchase Cambridge based Software Company, ITA Software Inc. 

ITA makes sophisticated software for major online travel services such as Orbitz.com and Kayak.com and airlines such as Continental Airlines Inc. and Air Canada. The main use of ITA software is to help users find online flight information.

The rumoured transaction could see Google competing directly with travel-search features offered by Microsoft’s program, Bing. A take over of ITA by Google could see the travel industry taken to a whole new level.  

Google’s mission is to organise the world’s information, and ITA does that for travel,” said Henry Harteveldt, an analyst at Forrester Research Inc. in San Francisco.

Neither Google nor ITA would comment on the rumours, however a report by Bloomberg News believe that ITA were seeking “around $1 billon” for an acquisition of their company.

President and Chief Executive of PhoCus Wright Inc., a global travel industry consulting group said, “ITA has a reputation as a company that is on a quest to solve some very big problems in the travel industry,’’ “ITA’s focus on cutting- edge technology would fit Google “like a glove. They are both search companies, after all.’’

The acquisition would see Google as the dominant player in the ever growing online travel business. With this possible new venture and the recent upgrade to Google Maps, Google Inc. is set to transform the way online travel bookings are viewed. 

 

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