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Online travel companies lobbying to stop Google
Online travel companies have organized in an attempt to say no to Google’s proposed US$700 million purchase of ITA software Inc., the world’s leading provider of flight data.
Kayak.com and Expedia Inc. are among companies saying the deal would give Google too much control over the travel market.
The companies are lobbying Capitol Hill to make their case, says the Wall Street Journal.
“Google responds that buying the service will help it provide more useful information to consumers when they search for flight data,” says the Journal.
But opponents of the deal worry that Google could limit access to ITA’s software, which is used by many of the flight-comparison sites operated by the members of the newly formed coalition.
Overall, ITA’s software handles about 65 percent of direct, online air-travel bookings for airlines, the company says.
Google has gone to the trouble of defending itself. Andrew Silverman, a senior product manager at Google, reiterated that one reason for making this acquisition is simple: “ITA will help us provide better results for our users.”
Among his defenses: ITA and Google are not competitors so there will not be less choices for consumers. Also, ITA does not set ticket price or sell tickets but only analyzes data about seat availability and fares.
Expedia also runs Hotwire and TripAdvisor. Sabre runs Travelocity, while Kayak runs SideStep in addition to Kayak.com.
“Not everyone in the $80 billion online travel sector opposes the deal. Some, such as Priceline, Travelport and Orbitz, have offered qualified support. Airlines have generally remained cagey about the deal. But some have signaled their concern privately, saying they haven’t received assurances they have sought from Google,” says the Journal.
By David Wilkening
David
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