Sunday, July 4, 2010

Orbitz Google juggernaut might just accelerate the trends

In the long run, though, online travel agencies could face a problem — not just from Google but from other meta-search engines like Bing. The entry of the Google juggernaut might just accelerate the trends. These meta-search engines do provide online travel agencies with more leads, but they increasingly direct consumers to airline and hotel sites instead, and this could eventually cut into margins for the travel agencies, Mr. Olson writes.

According to Wiki, Orbitz was the product name of a noncarbonated fruit-flavored beverage, made by the company Clearly Canadian Beverage Corporation (makers of Clearly Canadian), that had small edible balls floating in it. It was introduced around 1997 and quickly disappeared due to poor sales. The drink was marketed as a "texturally enhanced alternative beverage" but some consumers compared it to a portable lava lamp.

But as for Google investing $700 million to buy ITA, it is a light-information company. ITA currently provides airfare data to many of the industry players, including Orbitz, Kayak and Bing; Google said on Thursday that it would honor existing agreements with ITA’s customers. But despite such promises, Google is likely to make a splash. Wall Street analysts say the threat level from Google depends on the company.



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