Here’s Why Google Is Focusing on Travel

Recently, Alphabet Inc.’s subsidiary Google introduced “Google Trips” – a mobile app intended to reduce travel related hassles by aggregating all trip information relating to day plans, reservations, things to do, etc., bundles within the app. The company has also ensured that the “download” button for each trip can save this information on the users phone offline. This launch comes nearly six years after Google acquired flight information firm ITA software and indicates the Google is finally ready to foray into the travel segment. In 2015, direct leisure travel spending by domestic and international travelers in the U.S. was more than $ 650 billion and nearly four out of five domestic trips were taken for leisure purpose. This indicates the strong potential of the market for leisure travel – the segment which Google Trips targets. We believe the company can generate significant revenues from this segment, given that its Maps app is already a hugely popular product among travelers, with more than a billion active users globally. The potential power of the platform is considerable. Google Trips leverages both Gmail and Google Maps to combine information relating to flight information and hotel reservations (via Gmail); and it additionally generates customized itineraries, based on a desired locations pinned on Google Maps via the address and location information therein. Given these breadth of these offerings, Google Trips has huge potential to capture a significant share in the online travel market.


Cloud Computing