Is Google Planning to Take on OTAs With ‘Destinations’ Launch?

After mobile travel search product launches, Google managers say “never say never” on becoming an OTA.

Despite previous announcements that Google would not join the ranks of the online travel agencies (OTAs), their latest mobile-focused product walks the fine line between search engine and booking agency. On March 8, Google launched Destinations: an option integrated into the search engine that allows travelers to see prices for flights and hotels at any given location around the world.

According to the Google blog, the process begins when a flyer searches for a continent, nation or city, followed by the word “destination.” From there, the search engine displays options for travelers which include flight and hotel prices curated from their travel-focused search products.

“It can be hard to get all the right information in one place on a small screen,” the company wrote in their blog post announcing Destinations. “There are a dizzying number of questions to answer when planning a trip: What are the best places to visit? What time of year is good to go? What kind of prices can I expect?”

It is important to note that although the search giant is curating the information requested by potential travelers, actual bookings take place through another partner. Flights and hotels selected through Google Destinations are handed over to the corresponding travel provider or OTA to complete the booking. Although technically not a travel agency in their own right, Google defends their product as a way to help their partners grow their business.

“We really think this is an opportunity to provide [Expedia and Priceline] with more qualified leads,” Rob Torres, managing director of travel at Google, told CNBC. “If we get more people exposed and wanting to travel because we’ve made it easier to discover … we’re actually going to get more people who are interested with these leads that we will send over to Priceline and Expedia … this will be good for the whole travel economy.”

When directly asked about purchasing an OTA, similar to their purchase of ITA Software in 2010, Torres told CNBC: “Never say never.” The manager went on to imply a purchase would not necessarily be a focus because it would require a “very, very different business model.”

[Photo: Skift]