Google and Travel
April 28, 2010
For a number of years, Google has processed a query like SFO LGA at a city pair. One of the results is a table that allows one click access to travel reservations. Well, not exactly one click as you will see when you try the query. Close enough. The story that Google had an interest in acquiring a travel plumbing company called ITA. You can get the scoop in “Google Rumor Puts Focus on ITA.” My take on this alleged deal was, “Got it.”
When I read the Gerson Lehrman Group’s “Travel Game Changer – What Does Google’s Potential acquisition of ITA Mean?” I realized the gap between my “got it” and the GLG analyst’s view; that is, Google buys ITA and gets some nifty plumbing.
I certainly appreciate the ITA plumbing, but my “got it” considered these factors:
- ITA is a keystone company; that is, it supports a number of related entities and their operations. Google’s getting into satellite imagery pivoted on a similar keystone type of deal.
- ITA has credibility; that is, ITA translates to “travel” in some potentially desirable market segments.
- ITA has engineers; that is, these engineers bring domain knowledge and skills to the Google.
What happens in this type of deal is that Google’s disruptive potential is increased. Just as the satellite imagery deal caused some excitement at Microsoft when it took place, the ITA deal may have similar impact. This type of deal is not a deal based exclusively on technology, no matter how impressive. Google has some technology that can perform somewhat similar functions. The ITA technology may, like the dMark technology, be Google-ized over time if the deal actually takes place.
I find the GLG analysis interesting, but I am not sure it positions the deal in the Googley world. I did like the embedded “hire me” ad. (Not quite Google grade but an interesting touch in an “objective” informational post in my opinion.)
Stephen E Arnold, April 28, 2010
Unsponsored post.
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