Monday, April 18, 2011

Google's Travel Acquisition Is Good For Individuals And Small Businesses - Click here http://bit.ly/hWJdgs for full article

Travel_aquisition_google
Click here http://bit.ly/hWJdgs for full article

The Justice Department has approved what many are calling “Google's travel acquisition.” In July of last year, Google announced it would buy ITA Software. ITA is a leader in air travel search and air travel shopping online technology. Their search engine in is called Matrix, while their shopping system is named QPX. Many airlines and online travel sites have licensed these products.

The Department of Justice examined the deal to ensure there were no antitrust issues involved with Google's acquisition. After 8 months of study the deal was approved with a number of stipulations. The DOJ Deputy Assistant Attorney General in the Antitrust Division, Joseph Wayland, said the stipulations are designed to ensure there will continue to be fair competition in the online air travel industry after Google takes over ITA Software.

Among the requirements put forth by the Justice Department, Google must continue to license these products to companies that may compete with any future applications Google may develop for air travel search and shopping. The DOJ felt that without such stipulations, the consumer would eventually have suffered from limited choices in price and where to buy airline tickets.


A number of experts have voiced their support for the acquisition. Arthur Frommer, founder of the famous Frommer's Travel Guide, said that the online air travel and search industry “needs Google to straighten things out.” Travel industry analyst, Henry Hartevelt, believes that integrating Matrix and QPX into Google search will lead to a much better experience for the consumer because they will receive “more specific, actionable information.”

Many individuals and small businesses prefer to book their travel online rather than engaging a travel agent. The time spent researching flights and prices within a specific time-frame can add up very quickly. Each travel site visited requires the user to input all the details about the trip they intend to take including dates, departure and destination cities and time of day they wish to travel. Comparing prices on several sites means repeating the process several times. The reason so many industry experts are in favor of this deal is that these steps can all be combined in a single search from the main Google search page. Prices and schedules for flights from different travel sites will appear from a single search and this can make arranging travel much more efficient and cost effective for individuals and smaller businesses with limited travel budgets.

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