Nomura Securities Comments on Google's Launch of Flight Search: Wheels Up!
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Rating Summary:
44 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
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Nomura Securities comments on Google's (Nasdaq: GOOG) launch of Flight Search
Nomura analyst, Brian Nowak, said, "Of note, Google Flight Search does not include any links to OTAs, but rather directs all of its searchers’ traffic directly to the airlines’ websites for booking. That said, in its blog post, Google said it is “working to create additional opportunities for…other partners in the travel industry to participate,” so this is something we will continue to monitor."
"The roll-out of Google Flight Search and Google’s recent acquisition of Zagat Survey underscore the company’s continuing focus to build out its travel search offering, which we believe is a growing disintermediation threat to the OTAs."
"Google Flight Search is the next piece of the search giant’s growing travel suite of offerings (along with Google Places and Google Hotel Finder) which in our view threaten the OTAs’ long-term web traffic and “travel research” value propositions. In August of 2011, between 14% and 18% of the OTAs’ total website entries stemmed from Google or Bing Sites (which also continues to build out Bing Travel). It will be important to continue to monitor the airlines’ commentary on conversion and performance from Google Flight Search, as well as the OTAs’ web traffic as Google continues rolling out new travel search offerings."
Other stocks to watch today include: Priceline.com (Nasdaq: PCLN), Orbitz (NYSE: OWW), TravelZoo (Nasdaq: TZOO) and Expedia (Nasdaq: EXPE)
Nomura analyst, Brian Nowak, said, "Of note, Google Flight Search does not include any links to OTAs, but rather directs all of its searchers’ traffic directly to the airlines’ websites for booking. That said, in its blog post, Google said it is “working to create additional opportunities for…other partners in the travel industry to participate,” so this is something we will continue to monitor."
"The roll-out of Google Flight Search and Google’s recent acquisition of Zagat Survey underscore the company’s continuing focus to build out its travel search offering, which we believe is a growing disintermediation threat to the OTAs."
"Google Flight Search is the next piece of the search giant’s growing travel suite of offerings (along with Google Places and Google Hotel Finder) which in our view threaten the OTAs’ long-term web traffic and “travel research” value propositions. In August of 2011, between 14% and 18% of the OTAs’ total website entries stemmed from Google or Bing Sites (which also continues to build out Bing Travel). It will be important to continue to monitor the airlines’ commentary on conversion and performance from Google Flight Search, as well as the OTAs’ web traffic as Google continues rolling out new travel search offerings."
Other stocks to watch today include: Priceline.com (Nasdaq: PCLN), Orbitz (NYSE: OWW), TravelZoo (Nasdaq: TZOO) and Expedia (Nasdaq: EXPE)
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