Time was when Silicon Valley startups were scared stiff of Microsoft entering their sector, and offering the same thing - Only bigger and better and cheaper, thus destroying all other players in the same niche. Today, that role of big, bad wolf is being filled by Google. Silicon Valley’s brightest start sweating at the thought of Google entering their niche market, and pumping millions of dollars worth of technology, manpower and advertising into it. And for travel and trip planning websites, that nightmare is close to becoming reality. Businessweek reports that Google is poised to expand its travel offering.

In the future, the site will have marketer-sponsored pages where would-be vacationers can learn tons about a destination and see related user-generated content. Check out this link to a YouTube New Zealand channel for an idea of the kinds of videos destined for such pages. Torres [Rob Torres, Google’s managing director for Travel] says that the goal of Google’s travel division—aside from tapping into the $90+ billion global travel ad and sales market—is to give users a destination where they can research travel plans, read user reviews, and see user uploaded videos and photos. Already, about 50% of travelers use some sort of online social media site to research their plans, says Torres. Why not give them a one-stop shop for travel information? “We are already so highly searched for travel,” says Torres. - Google’s Travel Plans, Catherine Holahan, BusinessWeek, 22nd May 2008

And the article also touches on one more salient point. That as far as the travel industry is concerned, there’s a huge gray area where content and advertising meet. Meaning that most travel ads are of more interest to readers, who would definitely like to see deals about destinations they’re interested in, as opposed to say, reviews of consumer electronics or computer hardware - Where all a visitor wants is to read the review.

And if Google enters this market, mixes up its Youtube visitor base with destination review videos uploaded by users along with advertising, and adds some social networking kind of hub, which collects reviews from customers like TripAdvisor, that’s going to put a whole lot of companies out of business in the travel industry. Not to mention killing off any and all new startups in this fledling industry of web 2.0 travel and trip planning websites.

Posted on May 28th, 2008 by PLing
Filed under: Travel News