Google Just Became a Real Problem for Online Travel Agents | InvestorPlace.
Will Google use its search platform to get hotels to advertise direct listings to potential travellers and cut out the OTAs.
Google has the user data and easily Target advertisements which would be a compelling offer for hotels who are already looking for ways to not have to pau the commissions OTAs which can be as high as 25%.
The most directly effected by Google’s move into hotels may be TripAdvisor (TA), a search platform where travelers find hotel listings they can book through the online travel agencies or direct.
But it seems logical that G will have its cake and eat too, just as TripAdvisor is now planning to do. Touting that it is a Hotel Friendly engine, where travelers can book direct – TripAdvisor is simultaneously is plotting to offer assisted bookings. Why should we expect GoogleTravel to be any different. It will most likely expect small hotel to bid for links against the OTAs. In that event nothing much will change!