Friday, 5 April 2013

The giant Google investing into the e-tourism industry


Since its development, Internet has contributed a lot to the tourism sector. In fact it has never been so easy to plan a trip, get information about a destination or to share experiences. Many new companies, such as Kayak have emerged in the tourism industry to help travelers in their booking process.

Google, as the most famous search engine and multinational company link to Internet, is always trying to decrease the number of click between searches. Google has throughout the years developed tools such as Google Earth, Google Map or Google + that facilitate Internet users browsing. E-tourism being the most active sector on Internet, Google has naturally created its own services in this industry. To help the firm to be rapidly efficient, Google acquired several companies in the tourism sector such as ITA Software, Zagat and HomeAway. those acquisitions were born Google Hotel Finder (compares room rates and provides information) and Google Flight Search (compares the rate of flight tickets). However Google is continuing to expand in the e-tourism sector by developing a new service Google Travel that would centralize booking and optimize information sharing.


                                                                    Source: Travopia.com


The impacts on the tourism industry

The above graph shows that Google is now present at each stage of the travelling process, from dreaming, planning, booking and experiencing to sharing.
With the development of those new and varied tools, competition in the E-tourism industry is becoming stronger. Indeed, travel websites such as Expedia are in direct competition with Google. Travel comparators will most probably face hard times in the coming years because it is less costly for suppliers such as hotels to be on Google comparators than on online travel agencies.
However, Google Flight Search for example, is not as powerful as its competitors yet (Experian Hitwise study). Indeed, in September 2012, in the United States, it managed only 1.4% of the visits on all travel comparators websites whereas Kayak was managing 61%.

Moreover, search engines with a travel service such as Yahoo Travel and Bing Travel would suffer a lot from the launch of Google Travel. DMOs also would be impacted as they would have more difficulties to stand up from the others and be visible. Brazil Ministry of Tourism has been proactive and has created, in partnership with Google, the channel Visit Brazil on Youtube. Users can watch hundreds of videos and places of interest are automatically indicated on Google Maps . 

Besides, Google Panda & Penguin modified its algorithms which had terrible consequences for many travel websites. Finally, Douglas Anmuth, analyst from Barclays Capital stated that Google will launch soon the payment by click for airlines companies on Flight Search and for hotels on Hotel Finder. If this does happen, it would revolutionize the industry.

The professionals of the sectors view the evolution of Google in the tourism industry with suspicion and fear. Indeed it develops a strategy that includes tools which allow to obtain all the information needed to monitor, track, sell and predict the evolution of the touristic activities. Moreover Google strategy is not clearly displayed. We believe this is only the beginning. They are going to go much deeper in travel industry and might pose serious threat to existence of some travel companies. Even if the giant did not attack the online booking sites yet it appears that the American has all the tools to build a comprehensive travel site from the platform to booking. At the same time Google provides different applications and working tools, which could help the sector and enhance the visibility of some companies. Only time will tell but for now Google offers as many opportunities as potential threats.  



                                http://www.youtube.com/watch?v=OC2bUYVkjrY


Coralie DEGUERVILLE, Alyssa KIEFFER, Lou MICHEL


-       Pictures from:
-      - http://technorati.com/lifestyle/travel/article/googles-hotel-finder-brings-life-to/ 






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