I was watching Terminator 2 and surfing the web the other night when I came across an article titled something along the lines of Ex-Googlers launch Mobile Travel Guide To Kill Lonely Planet etc.. I went to bed that evening thinking about the online travel industry and the terminator. Thereʼs an online travel war brewing and like Judgement Day, thereʼs going to be a lot of casualties.

Does Google Become Skynet?

It all started in 1999, the year Google was founded. We all know the Google story. Hire the worlds best engineers, organize the worlds information and donʼt be evil....make billions and repeat process. Thereʼs no disputing the idea that Google has made life better for all of us. I was cool with Googles growth but 2 recent announcements caused me to pause and think. On July 1, 2010 Google announced that it was acquiring ITA Software for $700 million USD (http://www.google.com/press/ita/.) The other was Googles purchase of Zagat. (http://latimesblogs.latimes.com/technology/2011/09/ google-buys-zagat.html)

Why were these announcements important? Well for one it basically meant that Google was now moving beyond organizing the worlds information to actually help create it. Many websites rely on Googles search engine for traffic and the fear is that this vital traffic will be routed to its own businesses vs non Google affliated / owned websites. Just look at what happened with the Yelp story. Google tried acquiring Yelp, failed, so it dropped its reviews and pursued the next best acquisition target which was Zagat. The purchase of ITA Software also raised some eyebrows because Google was again crossing that invisible line and clearly joining the online travel war. Suddenly it wasnʼt enough to just reorganize search results, it was going to reorganize systems changing entire industries in particular the online travel market. Does Google become Skynet?....probably not. Theyʼre far from being that evil but even if it did I wouldnʼt worry too much because like in Terminator, we too have a John Connor but heʼs known to us as Mark Zukerberg.

Google vs Facebook vs “The Others"

Before diving into each companies current position in the online travel war we must understand the travel cycle. The phases of the travel cycle are - Dreaming, Researching, Booking, Experiencing and Sharing. Iʼm pretty sure we still control the dreaming phase (or are we part of a Matrix?) which leads us to the next phase....researching. This is an area of the travel process that we all pretty much hate. Itʼs a market that travel guides have been trying to crack for years now but no business has come close dominating it since maybe Lonely Planet did prior to Googles existence. I want you to think about the last trip you took and how you went about booking it. How much pleasure did you get out of researching for your trip? I hated it and Iʼm now going through it all over again as Iʼm thinking of going to Poland for 2 weeks this October.

1. Dream phase completed (very easy to dream about Polish girls :)

2. Research: Iʼve asked a few friends if theyʼve been there but most havenʼt. So now itʼs time to head to Google to look up some new websites. Iʼve looked up a few “Warsaw travel guides” but most are ass. Pretty poor videos too. I just want a Jazz equivalent who knows Poland very well to tell me where to go and what to do. Maybe Iʼll head to ASW.com which is only good for travel tips.

3. Booking; Iʼll book my airline direct even though most carriers have terrible looking websites (Iʼm talking about you AA.com) I trust Starwood hotels but canʼt afford them so letʼs try some other legit brands. Maybe book some hostels direct after reading some online reviews on Tripadvisor.

4. Experiencing: Like most of my trips Iʼll take a few photos with my IPhone. Have fun, and will try to stay out of trouble. If I have a data package Iʼll use Google maps.

5. Sharing: The day I get back Iʼll upload my photos onto Facebook so everyone can see how cool Poland is. Iʼm too lazy to write about the trip so weʼll let the photos do the talking.

Iʼm sure youʼve all gone through this travel cycle. The online travel war is taking place in pretty much every step but some businesses are better positioned to survive and thrive vs defeat.

FACEBOOK

Mark and team is to me the only real Google threat out there. Facebook dominates steps 5 (Share) and to some degree 1 (Dream) as well. Clicking through my friends photos gets me dreaming about these places. They have an edge over Google in step 2 (Research) because Iʼll always trust what my friends think vs strangers and most of my friends use Facebook. G+ looks cool but no one uses it. Mark needs to really focus on this vital step (Research) and come up with something thatʼs easy, sexy, and social. Facebook credits could make it easy to enter Step 3 (Book).

Jazzʼs take: Facebook should develop a dedicated travel section, very visual, very boutique and focussed. I picture a very visual Yelp with video in this section. Launch one destination at a time if you have too but do it right and Iʼll gladly book with you.

GOOGLE

Googles dominance on search is great for now but “backdooring” Google is getting easier with Facebook and Apples eco system. I see why mobile is so important for them and understand their recent acquisitions. Weak with steps 1 (Dream) ,3 (Book) ,5 (Share) but currently dominates step 2 (Research) and part of step 4 (Experience). Iʼll often use Google maps when I travel, GMail and occasionally Translate.

Jazzʼs take: Approve Googles acquisition of ITA Software. Iʼm tired of legacy systems and old school airlines that donʼt understand sexy, simple UI. If Google is going to make my life easier then Iʼm cool with this....just keep an eye on fair search engine placement. Also, create a dedicated travel section and improve you UI for writing reviews on places because that currently sucks too.

LONELY PLANET (and other traditional guides)

Iʼm not even going to mention Frommers, Fodors and the zillions of other travel guides because I donʼt think they stand much of a chance. Lonely Planet is well funded and has made some great changes online. A simpler app, more visual website and key booking partner / acquisition could help this brand thrive. They have my trust but theyʼre a little on the boring side. Strong with steps 1 (Dream), 2 (Research) theyʼre books are great, and ok with step 5 (Share) with a respectable online form but fails to profit in the important step 3 (Book).

Jazzʼs take: You canʼt do it alone. You need to be acquired by someone who believes in professional content or someone whoʼs got a solid booking engine in place a la Travelocity, Expedia, Priceline or other company that makes cash. Does Orbitz still exist?

YAHOO TRAVEL

Now that Carol is out maybe shit will get done. Yahoo has so much potential and I really think (and I’ve been trying to pitch them) that they could take the lead with online travel vs “the others”. They have the platform, now they just need to focus on building a much better travel section. They’ve outsourced step 3 (Book) and basically don’t do anything else for the other steps. Yahoo is kinda like that really nice, shy guy who’s just waiting by the bar for that right girl to talk to him.

Jazz’s take: Yahoo has so much catching up to do that unless it hires the right people ASAP and they run fast, they’re going to need to catch up by acquiring. Buy Yelp, or get the right team in place and build a section that’s fresh, inspiring, gets peoples juices going about travel. Get into the vacation rental business by acquiring Airbnb or HomeAway.

TRAVELOCITY

Sometimes being the low key guy is a good thing or is it? Travelocitys parent Sabre will be under a lot of pressure from Google if the ITA Software deal goes through. Sabres team needs to pick up the pace and innovate ASAP. Google is battling many wars on many fronts....you only have 1 to deal with so no excuses, get something going and make our lives easier with the travel cycle. Great step 3 (Book) but needs to strengthen other steps.

Jazzʼs take: Iʼd like to see Travelocity be the first to produce itʼs own online travel show. Booking with you is pretty easy but youʼre pretty the same as Expedia so whatʼs going to make you different from the others? Focus on Step 2 (Research) and be sexy about it. Arenʼt you guys based out of Texas? Use some of that Southern mojo and get it online.

EX-GOOGLERS GUIDES

Whenever I read about some ex-Googlers starting a travel guide or some tech guy (Offbeat Guides) jumping in I usually come to the same conclusion. Engineers donʼt get it....travel is very visual, emotional, itʼs not a coding problem.

Jazzʼs take: The next time any ex-Googlers or tech guy decides to get into the online travel guide business please, for the love of God, hire a good UI person. This Is Just The Beginning...

The online travel war is ongoing and we wonʼt see a winner anytime soon. Maybe theyʼll never be a clear winner but one thing does need to happen, we need to improve step 2 (Research) of the travel cycle badly. Traveling is such a huge part of human life, thereʼs just so much good that comes out of it from both a personal and professional level. T2 had its heros and I hope weʼll have ours too. Whoʼs going to make online travel fun and as a result win our travel dollars? Mark? Larry? Carl? Tim? Anyone?