Google Flights is “bad for airline industry”
Google has gone after airlines in its latest move, launching its Google Flights search engine in the Australian market.
But, much like the industry’s dislike of OTAs, Google Flights doesn’t spell success for everyone.
Back in April, Google started trying its hand at bundling travel packages for consumers, while the Partnerships Director for Travel Google, David Pavelko, claimed the search engine is coming after the “new travel consumer journey”, which literally breaks down the experience into “micro-moments”.
Google Flights kicked off in overseas markets several months ago, and allows users to use Google the same way they would any other OTA, by comparing flights and prices for different airlines, times, destinations and dates.
“Whether you’re traveling from Wollongong to WA, or Tullamarine to Townsville, Google Flights will give you travel inspiration and surface the best available flight options,” Google explained in a blog post Wednesday.
“Starting today, you can search on Google for flights to a destination by searching for things like ‘Flights to Cairns’ or ‘Flights to New Zealand.’”
By using Google Flights, users are notified with tips on how to find the best price for their chosen route, which includes recommendations for alternate airports and predictions of when prices might drop, giving you cheaper flights.
Google also provides an “explore” option for your holiday inspiration.
“Once you select your departure and return dates, you’ll be presented with a list of ‘Best flights’; which represents the best tradeoff of convenience and price,” Google said.
Google even offers you the option to track a flight and receive email notifications when the price drops, similar to a Google Alert.
But now, the Chief Technology Officer at travel IT company, CarTrawler, Bobby Healy, has come out in force saying this spells bad news for airlines.
Speaking at the CAPA – Centre for Aviation’s Airline Leader Summit in Dublin, Healy said the internet has allowed search engines and intermediaries to form closer relationships with consumers.
Per CAPA, Healy has developed booking solutions that are now in use by 80 per cent of the world’s top 20 airlines.
“Google is bad for the airline industry,” he said, per CAPA.
Healy said Google’s technology would allow it to step in and direct consumers to Google Flights just by searching for branded airlines in the search engine.
According to Healy, Google is taking control of the “trip planning funnel”.
At the CAPA Airline Leader Summit, Healy described what he calls the “trip planning funnel”, with review sites at the top, passing down through metasearch and OTAs, before reaching the supplier (or airline) at the bottom of the funnel.
As the funnel narrows towards the bottom, the greater the value added.
Per CAPA, he argued that Google’s strategy in the travel industry is to achieve critical mass in the market, then to take the top of the funnel and concentrate it to squeeze airlines out, or to make them pay.
“If you think GDS fees of USD5 or USD6 is bad, wait until you pay Google USD50,” Healy said.
And of course, there are oodles of OTAs out there trying to sway consumers to book via them and not directly, but Google is different because it is a monopoly in many of its areas of business.
According to Healy, Google has a 95 per cent share of online search, 75 per cent of digital marketing and 97 per cent of apps on its Android mobile operating system.
“To the end user, Google is the best company in the world, it has everything I need, but, as an airline, they know everything about your customer,” said Healy.
Google Flights, the company’s airline flight comparison site, has enjoyed a massive surge in popularity over the past five years, per CAPA.
According to data presented by Healy, the “google flights” is around three times more common as a search term than “kayak”, and more than five times more commonly searched than “skyscanner”.
The Google product overtook kayak, previously the US leader, sometime in 2015, from almost nowhere in 2012 and 2013.
“Google will wipe out the metasearch operators,” said Healy. “It is a monopoly promoting its own products.”
In the longer term, consumers will also suffer as choice reduces and prices rise.
“There’s a clear path to damage to the consumer,” said Healy, per CAPA.
He also suggested that “airlines and only airlines can stand in [Google’s] way”.
“Don’t let Google have your data unless it’s on your terms.”
Healy also recommended that they provide the “right digital products for consumers”.
Ian Heywood, Global Head of Product & Marketing, Air Commerce, for Travelport told the CAPA Airline Leader Summit, “The consumer wants to see what the product is, not just the price.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
-
Latest comments
Latest News
Collette goes off the beaten track with Canyon Country tour
To be clear TW is not advocating actually walking off the beaten track. Avoid the coyotes. Stay on the beaten track.
Intrepid & Korean Tourism Organisation team up to give agents a cooking masterclass
These guys learnt that Korean cooking is more than just putting kimchi on 2-minute noodles (as we once thought).
Winner, winner! Intrepid reveals the 9 lucky agents that won $2k
Who won the incentive? Which Intrepid trip will they spend it on? What day of the week is it again? Where am I? Huh?
Corporate Traveller reports 42% increase in Easter traffic this year
Business travellers just love Easter! Expect plenty of chocolate stained documents returning to the office on Tuesday.
Turbulent year wiped $384m off Qantas brand value: Report
Meanwhile, eating tuna at your desk can damage your own personal office brand value by several thousand dollars.
FAMIL: Room-Res & Singapore Tourism Board shows agents the Lion City’s roar
Click this article to see a man very impressed by a 20-layer chocolate cake. We're not kidding, he loved it!
Oceania Cruises offers sailors free pre-cruise hotel stay
Looking for ways to make your holidays as long as possible? Look no further.
Bonza launches new website to compliment app, agent portal
Does news about an airline's website fill you with ecstasy, glee and joy? Get your hit of the good stuff here.
MTA agents attends ‘Lunch ‘n’ Learn’ with AMA Waterways
When organising the event, Lunch 'n' Learn beat out Dinner 'n' Divulge and Breakfast 'n' Banter. Understandably so.
Travelmarvel reveals 2025 South America tours
If you spot any typos in the newsletter today it is because TW became distracted Googling images of Machu Picchu.
Tourists from 5 countries could be BANNED from visiting Australia
Anthony Albanese's immigration laws could impact tourism from certain countries.
Just how many passengers will Qantas & Jetstar hop around this Easter?
Airline workers are ready for gleeful Easter travellers! Also prepared for sticky children with chocolate on their face.
Air New Zealand gets ready for bumper Easter weekend
Air NZ gears up for travelling passengers this Easter, while TW looks to beat our egg eating record. 117 here we come!
Four Seasons Yachts reveals first itineraries to the Caribbean & Mediterranean
These trips look so good we wish there were five seasons! Alright, we'll see ourselves out...
FAMIL: Travellers Choice treats top agents to the wonders of Rotorua
This one's got plenty of famil pics and no one looks shockingly hungover in them! Clearly no TW staffers were there.
European Waterways celebrates 50th anniversary with week-long founders cruise
Plan on celebrating your 50th anniversary with a bottle of Moët and fairy bread? European Waterways has better ideas.
100th route! Jetstar celebrates the launch of Brisbane-Avalon with 12 hour sale
Jetstar knocks a ton and celebrates with a sale while TW once scored a ton and celebrated with about 17 beers.
Record-breaking year for NSW as visitor expenditure soars past $50 billion
Enjoy running round the Opera House? Be prepared to elbow even more tourists out the way.
Norwegian Cruise Line makes play for solo travellers
NCL ensuring you don't have to go trawling Tinder to find a cruise partner. Thank goodness, we were sick of catfishing.
Entire Travel Group’s Canada and Europe 2024/25 brochures are out now
Entire's new brochure is bittersweet; it both informs your clients and makes you envious of the holiday they'll take.
Malaysia Airlines adds 3 new destinations & A330neo seats
More seats means cheaper airfares and more money to spend on overpriced airport sandwiches. Woohoo!
Two divine days onboard Crystal Serenity
It's only pure serenity onboard this ship. Anxiety, agitation and anguish have been rejected by the bouncer.
How the Globus Family of Brands elevates coach touring: Travel Weekly TV with Chris Fundell
Chris' here so you don't think coaches mean peeling your thighs off a sticky leather seat every time you stand up!
The Flight Centre Foundation gears up for massive 2024 with 3 new board members
The foundation looks to invest $200k this year, spurring the TW journos to figure out how to qualify as a charity.
Barking Owl Communications to head up Anantara & Avani in ANZ
Fellow PR competitors had been barking up the wrong tree even thinking of bidding for this job!
Amex GBT to purchase CWT for $871m
It's big deals like this that get a firm handshake - hence the sore hands over at the CWT and Amex GBT offices.
1000MTG’s second global conference reminds agents to ‘strive and thrive’
Alongside messages to 'strive' and 'thrive' were those to 'survive', 'drive', 'arrive' and 'jive' (when appropriate).
Qantas A330 makes “loud bang”, pilots forced to shut down one engine
Qantas refusing to let Boeing have all the headlines in aviation world today!
GX Community Tourism Summit 2024 location revealed!
The new location has arrived and it'll blow your socks off! Time for another trip to Target for more socks then.
Visiting the destination my Mum didn’t want me to
Yet again, this journo has been a stress to his mother. Discover how this trip spurred his mother's anxiety here.
Agents come out of their shells at P&O’s turtle hatchery event
For some, it's a few glasses of bubbles to lure them out of their shell. For these agents, it was a bit more literal.
Boeing cleanout: CEO, chair to go as safety crisis plagues the manufacturer
CEOs are falling thick and fast these days. We should have started up a bingo game with their headshots in the office.
Virgin looks to swap MAX 10 order for MAX 8s amid Boeing delays: Reports
Virgin has changed its order for something smaller. Much like we have to at Maccas following a worrying doctor's visit.
Club Med unveils newest luxury yacht for 2024/25 early bird sale
This yacht is preserved for the early birds! Night Owls may also get onboard depending how late they stay up.
Abercrombie & Kent 2024 Asia Portfolio is here
Round up the family and get planning an Asia jaunt. Or, if they're hard to handle, brush them all and go it alone!
Elevate your earnings: Final days to secure double commission with Inspiring Vacations’ March offer
What could inspire you to sell more Inspiring Vacations? Double commission of course! That's all the inspiration needed.
Classic example of businessman being threatened by competent competition. Google flights is a very good service and I use it a lot. It would be better if they could direct users to the airline directly and not those horrible third party idiots who mess up your experience to the point of insanity.
When Google or someone can make flight booking easy and painless I will be an advocate and dedicated user. Flight booking is a horribly broken service.
So, I’ve been using Google Flights to track a trip to Vancouver along with checking other sites, which include the sites of the airlines (smart shoppers don’t just rely on one source). So far, the some of the best pricing for flights for the time parameters that I need I’ve found on the airlines’ websites. So, I can see how it’s bad for the airlines that their sites are being pushed out of site, but a savvy travel shopper will know to look to them for comparison anyway.
oh puleeease! For once I can finally chart out what airline tickets cost without going to six different queries and comparing them only to find out that search results changed “while I was on the phone” to use a colloquialism. Remind me again how that’s a bad thing? And best of all, it’s still free.