Google’s purchase of Cambridge based ITA Software.
It started paying off yesterday because the search big rolled out Google Flight Search, that may facilitate it take a bite of the multi billion dollar on line travel market.
“Once Google bought ITA, everyone knew they were planning to do one thing,” said Edward Woo, an analyst at equity analysis firm Wedbush.
It is a competitive marketplace, they’ll have to be compelled to keep one step before Google.
Woo was not impressed with the beta take a look at, that directs users to airline websites. He said it can be another year before Google makes a dent within the $165 billion on-line travel booking business. however eventually, Google can cut into the revenue of the massive 3 travel sites .. Expedia, Travelocity and Orbitz, Woo said.
On the opposite hand, business continues to grow steadily,” he said. “There is also enough space for everyone.
ITA develops algorithms that power travel websites like Orbitz and Kayak, that has an workplace in Concord. The U.S. Department of Justice approved Google’s $700 million acquisition of ITA in April.
“We’re assured in our ability to compete, and that we believe our flight search technology is superior,” said Kayak chief selling officer Robert Birge during a statement. “We acknowledge Google could be a formidable competitor, however they haven’t been successful in each vertical they’ve entered.”
Brittany Loughlin, chief operating officer of Gtrot, a “social travel” start-up that moved from Cambridge to Chicago in January, referred to as Google Flight Search, with that Gtrot doesn’t compete, “smart and intuitive.”
“They’ll capture lots of travel intent,” she said. “If they provide targeted ads within the huge, empty area to the proper of the results — travel ads on AdWords are therefore expensive as a result of it’s therefore dense — that might be a good chance for Gtrot.”