As was rumored back in May, Google is buying ITA Software.

ITA writes the code that powers the search engine behind Orbitz, CheapTickets, Kayak, Bing Travel, and a list of airlines. They also manage their own fare search site. ITA’s search site exists in seemingly perpetual beta, but it’s incredibly useful for finding complex itineraries that don’t automatically pop up in the usual booking sites.

In and of itself, it’s news that Google is committing to the travel space. But how might this affect the way we buy airline tickets?

Google says they’re not about to compete with agencies or airlines themselves. Their press info for the buyout reads: “Google won’t be setting airfare prices and has no plans to sell airline tickets to consumers.” (Somewhere, someone is sighing relief. Someone else is sighing in disappointment.)

Offhand, I actually don’t think Orbitz and CheapTickets (both part of the same company…) are at immediate risk, just because Google now owns their key data supplier. Google says (for now) that they don’t want to enter the travel sales business, so they won’t want to hurt what has to be one of their biggest clients.

So whose business is at risk? Which sites are in trouble? To me, it looks like a bad day for Kayak.com, Bing Travel, and any other metasearch sites that use ITA.

The metasearch business model is predicated on organizing information. So is Google’s. And much of Kayak’s information is coming from ITA. Google could easily take the ITA software engine and create a Kayak-esque site. And while Kayak has gotten a lot of attention over the years, it’s nowhere near the scale of Google. Kayak is at risk.

Not quite at the same level of risk, given the umbrella they’re under, but still in a weird position: Bing. Because Microsoft’s Bing also uses ITA, Google would suddenly become a supplier to Microsoft. An odd couple.

In a couple years, Kayak and its ilk may be marginal players in a field dominated by Google.

And Kayak must have seen the risks that Google poses. After all, Kayak itself was itself reportedly a failed bidder for ITA, alongside Expedia and Travelport.

All the attention has been on the Continental-United merger, but that’s not the only M&A action in the travel space. To wit:

• Hertz made an offer to buy Dollar/Thrifty for $41/share. Avis subsequently signaled interest in making a higher bid. Bottom line: The car rental market is about to shrink.
• Google is reportedly in talks to buy ITA Software, which provides much of the functionality for sites like Orbitz, Kayak, TripAdvisor Flights, and others. You can’t just google a ticket today, but you may do so soon.

The battle for Dollar/Thrifty between Hertz and Avis is largely about consolidation and elimination of the competition (much like the “Continited” merger). At the same time, buying Dollar/Thrifty would give Hertz or Avis a larger presence in the comparatively “downmarket” leisure travel segment.

The speculated deal for ITA Software is perhaps more interesting. What will Google do if it gains the technology and software engineering human resources to run better fare searches? Will they offer a search-of-searches, pushing traffic to airlines and online travel agencies, but putting Kayak and their metasearch ilk out of business? Will Google challenge Expedia, Orbitz, Travelocity, et al. themselves and build a Google travel agency? Will Google continue to sell the powerful ITA engine (which ITA lets anyone test drive on their beta site — login as guest) or will they let contracts expire and keep the technology for itself? Plenty of theories, but no answers.

So in the past week, the competitive landscapes for flying, driving, and booking travel have all potentially changed, with minimal visible benefits to the consumer. After all, less competition breeds higher prices.

All we’re missing is a hotel deal and a cruise line merger, and we’ll be all set. (The week is young.)

Reader Mara writes:

My husband and I are planning on flying to Milan from Houston later this fall using US Airways miles, and I’m wondering what the best option for connections would be. The agent tells me we can connect in Philadelphia, or there are Star Alliance flights we can take with Lufthansa, United, or Austrian. We know from reading your site that London Heathrow is bad for connections, and we would love some advice on where to change planes most conveniently. What should we avoid? Unfortunately there’s no Houston to Milan flight we can take! Thanks!

I applaud your strategizing, Mara, and I think you’re well on your way, simply knowing that Heathrow is a place to avoid. (Don’t believe me? Watch the video.)

There’s no nonstop Houston to Milan, so you’re going to be changing planes for this itinerary. So the question is, as you suggest, where to do it.

My general advice for travel to/from the United States: Try to avoid changing planes upon arriving in the US from overseas. You go through passport control and customs at your port of entry, not your final destination, so you have to claim your bags, possibly submit them to search, re-check those bags for your connection, probably change terminals, and hope you’ve left enough time to make the next flight. Not so in most of Europe: Connections are much, much easier in Europe, with customs inspections at your final destination rather than your entry point.

At the same time, the last thing I want to do after an overnight flight is to get onto another plane. Sure, I’ve done it, and sometimes it’s unavoidable, but my preference is always to have the overnight long-haul end at my destination. On overnight flights, try to arrive at your final destination, instead of at a hub requiring a connection.

So, practically, what does this mean for you? On your flight TO Italy, I would make connections in the U.S. and fly over the Atlantic direct to Milan. On the return, I’d make my connection somewhere in Europe and fly the long haul straight to Houston.

A caveat: These itineraries will usually involve different airlines on either end. That could get pricey for cash-money fares, even with codesharing. Try ITA’s search tool to find the best connections, and to get a sense of prices. Kayak.com may be of help, too, for mixed-airline itineraries.

But you said you’re using frequent flyer miles. Good! This is one of the less-celebrated benefits of the “free” ticket: You can mix your itinerary, with one airline going over and a different alliance member coming back. Use that flexibility to your advantage. And note: You won’t be able to view all the options online. You have to call the airline that you have the miles with — in your case, US Airways.

A quick search on arbitrary dates yields a flight from Houston to Philadelphia, and Philadelphia to Milan (all on US Airways). Coming back, consider Lufthansa from Milan to Frankfurt, and continuing from Frankfurt to Houston. Those flights follow the rules I set out, letting you avoid connections in Europe in the morning after your arrival, and skipping the tense fear that you might not make your connecting flight in the US, once you’ve dealt with Homeland Security’s passport control and customs inspections.

Either way you go, good luck, safe travels, and enjoy Milan!

(image)

Reader AJ writes in. His question:

I would like to find an airfare search engine where I can put in an airport and see:

a) Where all the direct flights go and the prices for each.
b) specify “Europe” or “Asia” and see the best prices to countries in those regions.

Why you ask?
We frequently travel last minute, and frequently we do not care where we go, we just like to go. So if we have 5 days with nothing to do and want to go someplace, anyplace, in Europe it would be handy to see what the lowest price option is.

First off, I admire your flexibility, AJ. Way to go.

Your first criterion, finding only the nonstop flights from a particular departure point, is tough. Some search engines will let you specify nonstops only when you’re searching specific dates, but I can’t find a nonstop limitation on any of the broad, flexible searches I’m familiar with. (Other readers are invited to chime in with suggestions in comments!)

As for looking for the cheapest flight for ultra-flexible destinations, you’re in luck:
The two best options right now are offered by FareCompare and Mobissimo. Travelocity offers an option for domestic travel. ITA Software has a solution, too, but it requires more work and is not as flexible on dates. Here’s the breakdown:

- FareCompare offers a flexible destination search through their “Destination Deal Maps” in the middle of the page. Click on the continent you want, and a list of fares will appear. Clicking on a fare shows you the dates eligible for the fare. Pick a date, then an airline, and the system checks seat availability. FareCompare doesn’t sell tickets, so you’re directed to one of the major online agencies to close the deal.

- Airfare aggregator Mobissimo also offers a search like this, bizarrely located in the “activity search” tab. After selecting your departure point, you can select the desired continent from the pulldown. It’s odd to see “Europe” or “Africa/Middle East” listed as an “activity” right alongside “beaches,” “gambling,” or “opera houses.” But hey, the search works. Like FareCompare, Mobissimo doesn’t sell tickets, but directs you to the seller.

- Both FareCompare and Mobissimo effectively mirror Travelocity’s Dream Maps in format. But Travelocity recently neutered this tool for international travel searches. It still works well for domestic searches, and the site sells tickets directly. (The flexible international search was taken down because the fares didn’t include the fuel surcharges. See here for an explanation.)

- One final idea would be to use ITA Software’s search. ITA’s search requires you to input destinations, but it allows you to string a number of options together. For example, you could enter your departure city, then add a boatload of contending city names or codes to the destination field in the form. Say you’re interested in going to Europe, you could enter something like “ams;fra;par;lhr;dub;mad;cph;ath;rom” — a string of European cities’ airport codes, separated by semicolons. Then widen the destination search by using the pulldown menu to include any airport within 300 miles. Then click “more options” and uncheck “allow airport changes,” to make sure you arrive and depart the same city. That will pull in a LOT of destinations for the dates you want. ITA doesn’t sell tickets, and doesn’t point you to a seller — take your pick.

Yesterday, the good folks at the Consumerist posted a helpful list of tips on actually cashing in your frequent flyer miles. (Yours truly was consulted and quoted.)

A few extra bonus-round suggestions, caveats, and clarifications for people looking to maximize their odds of using their miles:

1) Use miles for expensive tickets
Don’t waste your miles on tickets you can buy for dirt cheap. Check the cash fare first. Flying from Boston to LaGuardia? Chicago to Philadelphia? Cash should be fine. Flying from Charlotte to Perth, Australia? Salt Lake City to Ushuaia, Argentina? Now you’re talkin’. Use your miles for something really worthwhile, that you might not spend the money on otherwise. International filghts, ideally in business or first class, for example. If you can’t swing that, then still try to get the most value out of the miles. See Miles or Buy for a tutorial on maxing out your mileage value.

2) Another upside to the phone: Holding seats
The airlines’ award ticket web pages let you book seats, sure, but they generally don’t let you put them on hold. If you call, you can have the seats held for you while you look into hotels, etc., so you can tinker with your plans a little. The hold usually lasts 72 hours.

3) Persistence pays off: Keep calling
While the 331st day and four week rules of award ticket availability are excellent guideposts, seat availability is dynamic, and you never know when seats might open up. If they don’t have seats when you call on Monday, they may have them on Thursday — say, a person who cancelled seats, or whose hold expired. Call back every few days.

4) Downside of the 331 day rule
Let’s say you call 11 months before your desired departure day, and you snag seats for the outbound. Unless you’re coming back the same day, your return ticket won’t be available for booking yet. Again, this is where the hold function is useful.

5) Downside of the four-week rule
Last-minute seats can pop up, but much like #4, you might find outbound flights but no returns, because the return isn’t last-minute enough. Plus, some airlines (notably American, though United is joining them soon) charge last-minute redemption fees, which are a pure, unadulterated way to screw the consumer.

6) Not all airlines suck equally
Some airlines (cough, Continental, cough) are notorious for making it hard to redeem your miles. Others are better (American generally gets good marks). So if you have a hard time cashing in miles on one airline, you might want to rethink your loyalty, if you have any.

7) Not all airline websites suck equally
Some airline websites will tell you that your desired date is sold out, but they’ll show you availability within a couple days. Continental and United come to mind. Others, such as Air Canada, include some (if not all) partner airline options online, but this is still not as reliable as picking up the phone.

8 ) ITA: Best engine for timetable searches
If you want to know who’s flying where, it’s hard to beat ITA Software’s beta public website. (Click “login as guest.”) ITA most famously powers Orbitz, but Orbitz strips out a lot of the cool functions. Once you’ve run the search, you can build an itinerary segment-by-segment (click “choose flights” at the top of the results page).

And good luck…

Travelocity has disabled its flexible search function for international destinations. According to SmarterTravel.com, the online agency pulled the option because the U.S. Department of Transportation argued that the existing search did not offer sufficient price transparency. The culprit: fuel surcharges.

Indeed, this was my own pet peeve with Travelocity’s flexible search. You start with a great fare to Paris and when you finish clicking, your fare went up $300 — $100 in taxes (expected) and $200 in fuel surcharges (suprise!). Often, Travelocity would come back with a message like “We found a lower fare for you than the one you selected.”

(The change also affects the international component of Travelocity’s Dream Maps. Interestingly, you can still see fares to international locations posted on the maps, but you can’t go the next step to find airlines or book them.)

I part company with SmarterTravel’s blame game: I actually think the DOT was right in pressuring Travelocity to offer a more transparent fare search. The existing product was misleading. It’s Travelocity’s fault for not configuring their fare search product in a way that includes surcharges. Fuel charges are a specific, identifiable line item in building a fare. Why can’t it be included in a search?

But for those who loved that flexible international search, now gone, what are the alternatives? Here are my picks, ranked in terms of similarity to Travelocity’s defunct search.

1) Zuji
(Update: Zuji has killed the old flexible search-by-fare feature. The original post remains below for the sake of posterity, but this feature has been disabled. It is replaced by a +/- 3 day flexible search, which is not nearly as powerful. Skip it.)
Outsource! Zuji is Travelocity’s Singapore-based subsidiary, and it looks and feels much like the American site. And guess what: the international flexible date search is still there. The site is in English, and results are in US dollars. (If you’re based in the US, choose “other” for a country on the first page.) Some airlines are missing (but they were missing from the flex search on the US site in the last few months, too). Suggestion: Run your search on Zuji, then actually book the specific flights you find on Travelocity or elsewhere. Booking on Zuji may work, but you’ll incur higher booking fees plus extra charges for using a credit card overseas.

(Update July 29: A reader e-mail asks about Zuji and Dream Maps (referenced above). I can’t find a Dream Maps equivalent on Zuji. However, since Dream Maps will still show base fares (for now), but won’t let you click through to see airlines or schedules, here’s my advice: Use Dream Maps to find a good base fare in your desired region. If you see one, do a flexible date search on Zuji for that particular destination.)

2) FareCompare
On the plus side, FareCompare’s search acts much like Travelocity, except it’s organized by fare, not by airline. The downsides: It doesn’t show total prices (will it be targeted by the DOT next?). It also doesn’t let you book directly, but refers you to the big online agencies, where the price is often very different from what FareCompare quoted. Finally, it’s missing a number of smaller (but still mainline) international destinations.

3) ITA
The engine behind Orbitz, Continental, and others, allows you to search for fares to just about anywhere in the world, and it shows final prices including all taxes. It also finds codeshares and mixed-airline itineraries that are often good values. Its “month-long search” isn’t as broad a search as Travelocity’s, especially because you need to specify the length of your stay within narrow ranges, but it’s worth checking. But … it won’t let you book anything. You’ll need to go to an airline website, online agency, or traditional travel agent to buy the ticket.

4) Kayak
Kayak allows flexible search to international destinations, but only within 3 days of your specific dates. Some reliability problems here, too, for international fares that are quoted well below what the target sites actually charge. It’s not the free-for-all price-first dates-later approach of Travelocity (or Zuji) but it’s an option to consider.