Understanding Google's takeover of ITA

Whenever Google enters a new field, it will stir up a wave, and online tourism is no exception. 6 months ago, Google announced it would spend $700 million to buy Ita, a company that makes it easier for passengers to compare tickets. Since then, large enterprises in the online travel industry have been divided into two groups, one supporting and the other opposing. Regulators also want more time and information to start an antitrust investigation into the deal. The investigation is still under way.

This fall, American online travel companies, including Expedia and Kayak, formed a group called fairsearch.org, hoping to prevent regulators from approving the deal. Microsoft has also recently joined the organization. Kayak, which recently filed an IPO, said the combination of Google and Ita would pose a threat to its business.

We will not wait until Google succeeds in acquiring Ita. But this matter deserves our reflection:

One. Google can search the ticket information in real time

Henry, a tourism analyst at US market research firm Forrester. Hart Evert (Henry H. Harteveldt) has envisioned a change in Google's search for aviation. Recently he searched for the keywords "San Francisco's cheap airfare to New York". In less than a second, you get 4.6 million results and a lot of web links. If Google buys ITA, it will provide more search options such as dates. So he thinks, the new search keyword will become "January 5 San Francisco fly New York". He said the results would include information on airlines, schedules, ticket prices and ticketing websites.

Two. The ecology of this industry is likely to be destroyed.

With Google's position and effect in the U.S. search market, the deal will provide users with a better travel search experience. But in the long run, the risk is that it could make it too much of an advantage in the search for travel. Just like any other search market, it creates a single big situation and ultimately hinders innovation. On the other hand, the development and expansion of airlines rely more on Google search escort.

Three. Microsoft joins lobby alliance against Google's takeover of ITA

Microsoft will improve Bing's search for ITA, now that users use Bing to search for flights without having to choose a ticket, destination, date, etc., but can enter text directly into the search box and get search results. For example, the user enters the "January from Chicago to San Francisco flight" in the search box to obtain the results of the Bing flight, including information on possible travel dates, ticket price forecasts, and the cheapest airfare.

Four. The impact on China's tourism industry

1, the use of information technology to rapidly change sales channels is China's airlines urgent

For many years, China's airline sales have been in accordance with the traditional sales model and channel sales of their products, admittedly, these sales model has its rationality and inevitability. But history has entered into the 21st century, information technology has become the main theme of this century, whether we admit it or not, its influence has spread to all walks of life, and has a huge impact, especially for the civil aviation industry, this influence is mainly reflected in sales channels.

2, aviation marketing needs new ideas, new ideas

First, the airline marketing must be at the global level to understand, this is not only the aviation market itself is globalization is the market, but also the direction of marketing and ideas. From this point of view, the design of our products, services, prices, sales channels and ways and so on have a new idea, rather than in the past, a certain area of a product in the way of singles alone. Second, it should be realized that in the knowledge-based economy and service economy today marketing is no longer a mere meaning of sales, it gives revolutionary content, it blends service, service becomes the core content of marketing, sales become marketing means.

3, the aviation market globalization, airlines must broaden their thinking to find suitable for their own development of the road

Eric Schmidt, Google's chief executive, said Google planned to use ITA technology to build "new flight search tools for end customers". These tools can help you search for flights, choose flights, compare prices, and so on, and quickly help you find places to buy tickets.

Final summary: For us people, the benefits outweigh the disadvantages, Google's successful acquisition of ITA, we may get a better search experience, not successful, but also maintain the diversity of things development. So our attitude is: let it be; our feeling is: pain and happiness.

Source: Freshwater Fish Blog submission.