Fierce Rivalry in the Online Travel Industry Is Playing Into Google's Hands
by Joseph Gacinga, The Motley Fool
According to FairSearch, more than half of the world's travel sales are consummated online. For online search giant Google, travel ads by online travel agencies, or OTAs, are a good source of revenue. Google accounts for approximately 67% of all U.S. online searches.
Online travel companies such as Priceline, Expedia, and TripAdvisor have been competing fiercely to establish themselves as the travel agencies of choice for customers. To catch the eyes of prospective customers, these companies have been spending massively on sales and marketing, particularly on online ads. Priceline spent $1.8 billion on online ads in fiscal 2013, while Expedia spent $1.2 billion. TripAdvisor spent $236.5 million on ads last year. ...Fierce Rivalry in the Online Travel Industry Is Playing Into Google's Hands