Date: January 23rd 2012

Dear Travel Industry Colleague,

Re: A Top Issue For 2012

In April 2011, the U.S. Department of Justice approved with conditions Google’s $700 million dollar purchase of ITA Software, a firm that powers many online travel agencies. In September 2011, Google Flight Search was launched. Business Travel Coalition (BTC) is increasingly concerned about Google’s apparent anti-competitive and exclusionary practices and would value your input.

During a recent travel industry conference a Google executive publicly acknowledged that the search firm is not listing travel agencies or other travel distributors in its flight search results because airlines have demanded this as a condition of financially supporting Google Flight Search. BTC seeks to elevate the public policy discourse regarding Google’s travel search policies and practices.

As a consequence of Google’s policy, all manner of distributors, e.g., meta search engines, consolidators, tour operators, air charter firms and agencies with negotiated airline rates are purposefully excluded even as business and leisure travelers believe that a Google search will yield unbiased and virtually-complete results. BTC is troubled by Google’s potential for harm to the managed travel community as well as to independent business and leisure travelers.

New travel distribution technology participants with disruptive business models can drive increased value and benefits for all travel consumers – on this there is nothing to debate. However, to safeguard the long-term competitive structure of a given marketplace antitrust laws must be respected and enforced. What’s more, if abuse of a dominant competitive position causes structural industry problems and harm to consumers, remedies need to be pursued.

What would be immensely harmful, for example, is if the travel distribution system were weakened by firms either being run out of business or by investors’ unwillingness to support new-entrant travel technology companies because of predatory competitive practices. At a time of airline industry consolidation to fewer competitors as well as antitrust-immunized global airline alliances, a strong distribution system is necessary check on growing airline market power and industry concentration levels.

If you would like to stay abreast of this issue and provide input to BTC during the year, please so indicate at http://svy.mk/wOR0s1

Thank you for your continued support!

Kind regards,

Kevin Mitchell
Chairman
Business Travel Coalition

 

 

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