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Google Flight Search Shakes Up Travel Market

Online agencies accuse search firm of abusing its power

By Rob Quinn,  Newser Staff

Posted Dec 27, 2011 3:00 AM CST | Updated Dec 31, 2011 7:00 AM CST

(Newser) – Online travel agents like Expedia and Orbitz complain that Google's new flight search tool is unfairly squeezing them out of business. Searches like "NY to LA" now produce a Google chart of airfares, with links directly to airlines, that appear above the results for middlemen. The travel sites accuse Google of abusing its power in an effort to grab itself a big piece of the $110 billion online travel market, the Wall Street Journal reports.

It costs airlines some $10 more to process flights booked through online travel agencies than ones booked through their own websites, and Google—which classes its flight links as advertisements—has declined to comment on how much it is making by steering customers directly to airlines. Google's flight searches are powered by ITA Software, a fare-tracking site that it bought earlier this year after receiving anti-trust clearance. The travel sites say Google, at the behest of airlines, is violating its promise to use the new function to send more traffic to online agencies as well as airlines.

Google's flight search currently only covers domestic flights but it plans to add international ones soon.
Google's flight search currently only covers domestic flights but it plans to add international ones soon.   (AP Photo/Jeff Chiu)
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It would be nice to have a company that holds itself up as a light of corporate morality to actually stand by what they say. - Robert Birge, Kayak's
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COMMENTS
Showing 3 of 21 comments
YetAnotherCollegeKid
Dec 31, 2011 9:55 PM CST
Oh noes! Google is being... evil isn't the word I'm looking for. Helpful, useful or efficient. Any of those will do. I will admit they almost have an information monopoly. But if they are using it to drive down prices, not drive them up. Who does that? Do we even have a context for that?
mtownfred
Dec 27, 2011 7:59 AM CST
Actually when I checked a flight, advertisers such as Expedia were at the top of the page.  Furthermore, when I went to Google's "spreadsheet" and put in a flight from PHL to HDN (Philadelphia to Hayden Yampa Valley), it said there wasn't any but when I put in the same in Expedia's site, no problem.  Won't be using Google for travel plans.
Fondue
Dec 27, 2011 7:28 AM CST
Big Business is making things more expensive? Shocking. And we have the nerve to complain about extra fees. And airlines kicking off good paying customers like Alec Baldwin over trivial infractions can't be helping the bottom line either.
 

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