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The internet travel space just got a little bit smaller as Google entered the hospitality industry in a big way on Wednesday. According to a Wall Street Journal article, the internet giant is moving boldly to play a larger role in booking hotel rooms. They are doing it at the risk of offending some of its most important advertisers.
Why Google is making the move now
The potential market Google is entering is very large. In the U.S. alone, travel and tourism spending totaled $450 billion last year, and is expected to grow 3.5% in 2014, according to the World Travel & Tourism Council.
Google also just completed its latest move related to hotels, striking a licensing deal that will give it access to technology from hotel-booking software startup Room 77. This move also adds engineers to Google’s hotel-search team.
Why this move makes sense for Google
Travelers are constantly looking for the most efficient way to book travel accommodations online. ResortsandLodges.com prides itself on putting your property’s homepage one-click away from Google, Yahoo, and Bing search results pages. Google is trying to make sure you don’t even leave their search results pages, allowing you to book without even reaching the major OTA’s and metasearch engines. Google becomes the ultimate metasearch engine in this case. Continue reading