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What the Google-ITA Deal Really Portends
Much of the discussion about Google's bid to buy ITA Software, including here, has been limited by the lack of understanding all around about how airline search and reservations actually work now, and what it is exactly that ITA Software does. Travel expert Edward Hasbrouck wrote a detailed 3-part piece on his blog explaining the back story, what ITA Software does, and what it means for travelers. "...because CRS/GDS [Computerized Reservation Systems or Global Distribution Systems] companies are generally invisible in their intermediary role (and currently all owned by groups of private equity investors, so they need not report publicly on their finances or operations), few analysts outside the travel tech industry know how to interpret the implications of Google's decision to invest $700 million in this sector. Frankly, I'm not at all sure Google itself understands what ITA Software does (and doesn't) do, and what they are getting for their money. ... What will this deal mean for travelers? The short answer is that it is likely to be a bad thing for travelers ... because it is likely to exacerbate the trend toward personalized and less transparent pricing of airline tickets (and other travel services) and the de facto disappearance of key consumer protection principles embodied in the definition of a common carrier and the requirement for a published tariff applicable equally to all would-be customers complying with the same rules."
Is it me, or is everything reported that is IT related these days a conspiracy? LOL! Actually, this story was informative and helpful. It could have done without all the pretense though.
"and Bing has been trying to sell their "Decision Engine" as a tool for selecting flights and predicting fare movement, so this seems like a natural acquisition to add to Google."
To be fair(?) this wasn't Bing/Microsoft's idea originally. As is so frequently the case it seems, a website called Farecast came up with the idea of basically aggregating the aggregators (which isn't a big idea in itself) and using that information to predict future flight prices (which is, IMHO.) It was incredibly useful, and when Microsoft realized that they bought out the company and merged it into Bing. I used Farecast before the buyout and now it's the only thing i use Bing for, since as far as i'm aware no one else has implemented the idea. (If i'm mistaken about that then someone please inform me of the alternatives.) If this acquisition means Google is thinking about doing the same thing, then great!
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Do these people even think before they type? Do they really think google would spend $700 million on something that they have no idea what it really does?