More media model machinations from Expedia Inc this week - its TripAdvisor Media Network has linked up with airline tech specialist ITA Software in a "multi-year" deal.
The significance of "multi-year" is that it's the only concrete thing we learn from the somewhat understated joint press release. TripAdvisor's press office response to emailed questions was political, not really answering without declining to comment.
The link-up is interesting on a number of levels. ITA Software produces "transactional" airline search and shopping tools, and there are a number of airline-focussed user-generated content sites within TripAdvisor Media Network.
These include airfarewatchdog.com, bookingbuddy.com, frequentflier.com, onetime.com, seatguru.com, and smartertravel.com. They generate revenues through display/banner ads.
ITA products are already used by other online businesses to sell seats. It picked up $100m of funding early in 2006, and has since signed deals with kayak, farecompare, cleartrip and farelogix. TAP Portugal, LOT Polish and Alitalia have also integrated its kit into their web sites.
So TripAdvisor's airline sites could looking at adding transaction revenues to its media income. Its response to a direct question was: "TripAdvisor Media Network are media companies, and this announcement with ITA does not signal a change in that. We'll remain media companies."
But that's not to say that media companies aren't interested in non-media revenues: after all, Expedia Inc is an online travel agency business which generates c10% of revenues from media...
Whether the ITA deal will lead to a material improvement in revenues from the airline sites remains to be seen. It's something else to watch from the market leader.
The significance of "multi-year" is that it's the only concrete thing we learn from the somewhat understated joint press release. TripAdvisor's press office response to emailed questions was political, not really answering without declining to comment.
The link-up is interesting on a number of levels. ITA Software produces "transactional" airline search and shopping tools, and there are a number of airline-focussed user-generated content sites within TripAdvisor Media Network.
These include airfarewatchdog.com, bookingbuddy.com, frequentflier.com, onetime.com, seatguru.com, and smartertravel.com. They generate revenues through display/banner ads.
ITA products are already used by other online businesses to sell seats. It picked up $100m of funding early in 2006, and has since signed deals with kayak, farecompare, cleartrip and farelogix. TAP Portugal, LOT Polish and Alitalia have also integrated its kit into their web sites.
So TripAdvisor's airline sites could looking at adding transaction revenues to its media income. Its response to a direct question was: "TripAdvisor Media Network are media companies, and this announcement with ITA does not signal a change in that. We'll remain media companies."
But that's not to say that media companies aren't interested in non-media revenues: after all, Expedia Inc is an online travel agency business which generates c10% of revenues from media...
Whether the ITA deal will lead to a material improvement in revenues from the airline sites remains to be seen. It's something else to watch from the market leader.
Maybe they're looking at delivering a meta search?
Interested to get your thoughts on this subject?
TripAdvisor and is Twitter the new Teletext?
http://tinyurl.com/8lo4al
Hrush:
Possibly. We have an insider who said "we would love to be able to transact on ********" but not yet.
Ian:
Add to the conversation, please. We're not here for link purposes.
I'm guessing the asterixes represent Seatguru? I find it odd that TripAdvisor would pick ITA instead of Expedia's search, which "claims" to be better.
I think transacting would change the economics of a content business too much to be viable, I'd put my money on a search or lead based model.