Thursday, March 10, 2011

Google takes position in tourism by offering ITA Software

Article link:
By: Stephanie Mayes
Summary:
·         Google spent 700 million dollars for a software company specializing in travel agents and airlines
·         The company, ITA, began in 1996 by computer scientists from MIT. It has about 500 employees
·         Google’s goal is to reduce frustration for people finding the right flight at the right price
·         Google’s goal is customize software used by ITA QPX U.S. Airways, Continental Airlines, Kayak, Orbitz, and to incorporate Microsoft’s search engine
·         Google’s competition is Expedia, FareCompare, Hotwire, and Bing Travel
·         The database on air fares and customers (airlines, travel agents, specialist) is very comprehensive
·         ITA Software is very innovative, high performance and developed by experts in the sector

Impact on business:
                Database Software is relevant in all industries, not just accounting! It is a foundation tool to generate business and compete strongly. Knowledge of database information systems is transferable to many industries. Google’s acquisition can have many results. Examples are user friendly internet business, error free transactions, and timeliness of up-to-date information. Increased competition will also affect businesses and consumers. This software is very complex. ITA is a team of aviation sector and software scientist; which means, Google’s database will be very efficient, accurate and reliable. Hopefully, this will increase consumer spending on travel.    

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