I love Woot. It is a hark back to the glorious days of a single but extremely focused application.
One product each day. It is addictive to watch it. Surprising then is that Amazon has plonked down a bunch of cash to acquire the irreverent site.
Check out their sarcastic comments here
Now just imagine for Travel that there was a singular "Best Deals" site.
Now that's a thought.
Cheers
03 July 2010
What Level of Scrutiny on Google+ITA (aka Troogle)?
This was not going to be a quick and short post as I could use all my Professor skills to analyze the issue. However in starting to do some research on the subject I went back and visited some of my old posts on the subject. I have long felt that Google was already a monopoly in Travel before the acquisition. Troogle has a hot topic in 2008 and 2009. Then the chatter died down. So I reprint here for your edification and reading pleasure a post I did last year on the subject on what I think the Obama Administration is planning to use as a frame of reference on Google’s activities in travel.
Here are a few salient points.
1. I believe that the review time will take more than Admob. In the case of Admob – there are a large number of different options and it is a nascent business too early in its cycle to say that there will be a single business who can dominate.
2. Travel is a more defined category and the tentacles of the dark side that Google has become stretch far and deep and wide.
3. US law will prevail and US law is very specific in this area of what defines monopoly and how it can impact the transaction. (see below)
But – I want to be clear that I do not necessarily believe that Troogle will be bad for the industry. There are now clear winners and losers who will be impacted by the transaction. The world of GDS dominated distribution for one is probably headed for the sunset. The cost structure of meta-search on both the supply side and the seller side will be seriously impacted to the point where meta search may become irrelevant.
So what do you think? Let me know directly or privately.
Cheers
POST August 31st 2009:
[Professor Sabena's Blog] Is Google A Monopoly?
I have this uneasy feeling about Google. The power they wield is significant. Fine if they don't abuse it - or is it? And what if they do actually use their power and abuse it?
I have written columns on this going back to 2006, here are two of my older posts on the subject:
http://t2impact.blogspot.com/2006/10/that-giant-sucking-sound-is-google.html
http://t2impact.blogspot.com/2009/08/is-google-new-evil-face-of-it.html
It seems that the Seattle Times and other Media outlets have started to feel the same way too. Today's editorial was somewhat less than subtle. The Times (a right wing paper in my view since it crushed the old Seattle PI), is calling for Google to be investigated for being in violation of the Sherman Act.
http://seattletimes.nwsource.com/html/editorials/2009766680_edit31google.html
A quote from the Obama Administration assistant attorney general for antitrust, Christine Varney, as saying that Google was America's most obvious antitrust problem — Microsoft was "so last century" she said... ouch.
The editorial called for an investigation of Google under the Sherman Act. Section 2 which says:
Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony...
That has been the law of the United States since 1890. All it requires (per the Seattle Times) is that the Justice Department pick it up and use it.
Should we accept that Google is being altruistic all the time or is there something more sinister about Google? It seems that Google's hand has to be forced sometimes - hardly the behavior of a good global citizen.
For my own part - I am happy to use the Google search engine but I remain leery of Google's force in the market. It is downright scary the amount of power they have.
So what do you think?
Cheers
--
Posted By Professor Sabena to Professor Sabena's Blog at 8/31/2009 12:36:00 PM
Here are a few salient points.
1. I believe that the review time will take more than Admob. In the case of Admob – there are a large number of different options and it is a nascent business too early in its cycle to say that there will be a single business who can dominate.
2. Travel is a more defined category and the tentacles of the dark side that Google has become stretch far and deep and wide.
3. US law will prevail and US law is very specific in this area of what defines monopoly and how it can impact the transaction. (see below)
But – I want to be clear that I do not necessarily believe that Troogle will be bad for the industry. There are now clear winners and losers who will be impacted by the transaction. The world of GDS dominated distribution for one is probably headed for the sunset. The cost structure of meta-search on both the supply side and the seller side will be seriously impacted to the point where meta search may become irrelevant.
So what do you think? Let me know directly or privately.
Cheers
POST August 31st 2009:
[Professor Sabena's Blog] Is Google A Monopoly?
I have this uneasy feeling about Google. The power they wield is significant. Fine if they don't abuse it - or is it? And what if they do actually use their power and abuse it?
I have written columns on this going back to 2006, here are two of my older posts on the subject:
http://t2impact.blogspot.com/2006/10/that-giant-sucking-sound-is-google.html
http://t2impact.blogspot.com/2009/08/is-google-new-evil-face-of-it.html
It seems that the Seattle Times and other Media outlets have started to feel the same way too. Today's editorial was somewhat less than subtle. The Times (a right wing paper in my view since it crushed the old Seattle PI), is calling for Google to be investigated for being in violation of the Sherman Act.
http://seattletimes.nwsource.com/html/editorials/2009766680_edit31google.html
A quote from the Obama Administration assistant attorney general for antitrust, Christine Varney, as saying that Google was America's most obvious antitrust problem — Microsoft was "so last century" she said... ouch.
The editorial called for an investigation of Google under the Sherman Act. Section 2 which says:
Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony...
That has been the law of the United States since 1890. All it requires (per the Seattle Times) is that the Justice Department pick it up and use it.
Should we accept that Google is being altruistic all the time or is there something more sinister about Google? It seems that Google's hand has to be forced sometimes - hardly the behavior of a good global citizen.
For my own part - I am happy to use the Google search engine but I remain leery of Google's force in the market. It is downright scary the amount of power they have.
So what do you think?
Cheers
--
Posted By Professor Sabena to Professor Sabena's Blog at 8/31/2009 12:36:00 PM
Occasional Flashes of Brilliance... and Fear
Today was not a good day for the South American Football Teams. The passion and the sheer drive of the Latins were sadly no match for the methodical onslaught of the Europeans. Well at least that's how the German's played - wearing down Maradonna's mob.
And so it would seem to be for some of the traditional power houses of travel. Google's onslaught puts them now in a very commanding position in sector that will be hard to unseat them - or avoid the long shadow they now cast. As I noted in the TNooz panel - the ITA purchase puts them in a commanding position in many facets of the travel ideation through purchase.
As PhocusWright noted "they claim to be building something that the industry has never seen before." And this is because they are now in a commanding position with more fingers in more pies than any other player - end to end.
But perhaps one of the biggest elements as far as I am concerned is that they have the ability to fundamentally change the rules as far as data quality and assured price offers. The veneer of "its good enough" has now changed and this is where the the old model will expire in the face of better technology as well as a solid business model.
So let me leave you with one thought. If you examine who has been making more money out of travel over the past 5 years 0 the fattest cats are the GDSs. Followed closely by Google. Those large EBITDAs quoted for Amadeus are now in the cross hairs of the boy wonders.
If anyone doubts that the GDS revenue stream was not one of the driving forces for Google - then they are clearly naive. So correctly the meta search players - as distinct from those who are active in real search and the legacy GDS players are to me the most vulnerable.
The formation of the OpenAxis group and the announcement of its formation on the day that Google announced its acquisition of ITA can hardly be seen as disconnected.
Be afraid - be very afraid if that is the game you are in.
Cheers
02 July 2010
So Apple Steps up and Acknowledges Too Fast Too Soon... But....
The iPhone has suffered what could be seen as a pretty hefty hit to its credibility. And for once the Professor didn’t have to harp on about it.
The complexity of the system integration causes it to – well become pretty useless as a device for which its primary purpose is – er – communication. I have been somewhat aghast at the poor quality of Smart Phones. I am a Crackberry user but in general do not like using the device as a phone. My preferred mobile is very much a phone but the swapping of sim cards and having to be very careful about how I use it drives me nuts.
In Apple’s case it’s highly oiled black turtle necked spin machine could not stop the huge groundswell about the set of problems that users had with the new device. As one new (and very unhappy) user told me – it was an interesting small desktop computer.
If it’s all the same to you – I will pass.
Cheers
The complexity of the system integration causes it to – well become pretty useless as a device for which its primary purpose is – er – communication. I have been somewhat aghast at the poor quality of Smart Phones. I am a Crackberry user but in general do not like using the device as a phone. My preferred mobile is very much a phone but the swapping of sim cards and having to be very careful about how I use it drives me nuts.
In Apple’s case it’s highly oiled black turtle necked spin machine could not stop the huge groundswell about the set of problems that users had with the new device. As one new (and very unhappy) user told me – it was an interesting small desktop computer.
If it’s all the same to you – I will pass.
Cheers
Greece Finds a Home For the A340s
Having been parked somewhat forlornly at ATH, the Greek Government is due to receive a large reward for its patience. Greece expects US$122 million from sale of four ex-Olympic Airlines A340-300s.It acquired them as part of the overall deal when it sold off Olympic to a banker.
These aircraft have been parted for the better part of a year at ATH. See the picture captured by the Professor last month
Now what to do with those 737s and the ATRs.
Will the States Get Greedy And Use New Legislation to Tax Ancillary Services?
Just as a new standards group called OpenAxis emerges from the group aligned with Farelogix - there are a few clouds on the horizon.
The first was the hissy fit that Mike Premo of ARC had earlier this week on the slow adoption of EMD.
The other is the looming issue of taxation.
A new bill has just been introduced into the US Congress. The “Main Street Fairness Act” was formally introduced in the U.S. House of Representatives on July 1st 2010. If passed into law, it would require e-commerce companies to collect sales taxes, and thereby undoing judicial rulings and previous Administrations promises that exempted Internet and catalog retailers from collecting sales taxes in states where they do not have a physical presence. Sponsored by Massachusetts Congressman William Delahunt, the legislation ostensibly is in response to increasing pressure from state and local governments to increase tax revenues. As Ancillary Revenues are clearly subject to such taxation regimes it would cement the how a local jurisdictions could indeed demand tax.
If it is enacted, i expect a ripple out effect. The vast majority of e-commerce sites will begin collecting sales taxes, thereby reducing the perceived price advantage of shopping online.
Legislation would require sales tax collections on B2C Internet sales that are not exempt or otherwise accounted for.. The proposed legislation would require almost all online retailers to collect sales taxes in the states that adopt the Streamlined Sales Tax Project, an effort to simplify disparate tax laws and ease compliance. However it is safe to assume that there will be a period of time for adoption and their eminences (the judiciary ) will want to exert some form of stamp on this.
Interesting twist… stay tuned
The first was the hissy fit that Mike Premo of ARC had earlier this week on the slow adoption of EMD.
The other is the looming issue of taxation.
A new bill has just been introduced into the US Congress. The “Main Street Fairness Act” was formally introduced in the U.S. House of Representatives on July 1st 2010. If passed into law, it would require e-commerce companies to collect sales taxes, and thereby undoing judicial rulings and previous Administrations promises that exempted Internet and catalog retailers from collecting sales taxes in states where they do not have a physical presence. Sponsored by Massachusetts Congressman William Delahunt, the legislation ostensibly is in response to increasing pressure from state and local governments to increase tax revenues. As Ancillary Revenues are clearly subject to such taxation regimes it would cement the how a local jurisdictions could indeed demand tax.
If it is enacted, i expect a ripple out effect. The vast majority of e-commerce sites will begin collecting sales taxes, thereby reducing the perceived price advantage of shopping online.
Legislation would require sales tax collections on B2C Internet sales that are not exempt or otherwise accounted for.. The proposed legislation would require almost all online retailers to collect sales taxes in the states that adopt the Streamlined Sales Tax Project, an effort to simplify disparate tax laws and ease compliance. However it is safe to assume that there will be a period of time for adoption and their eminences (the judiciary ) will want to exert some form of stamp on this.
Interesting twist… stay tuned
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