News that Google has made its first big-name travel signing with the acquisition of ITA Software in a $700m deal has sent reverberations across the industry.

Following the announcement Google's Marissa Mayer, vice president of search products and user experience, commented: "While online flight search is rapidly evolving, we think there is room for more competition and greater innovation." Almost half of all airline tickets are already sold online.

We’re confident that by combining ITA’s expertise as the leading developer of flight information software with Google’s technology we’ll be able to create great user innovations in flight search - Google Blog

ITA has been lauded for developing ways of showing and organising flight information online in a user-friendly way. Coupled with Google's repository of related content, such advanced technologies could herald a seachange in the way the internet delivers travel information and transactions.

The acquisition "will create a new, easier way for users to find better flight information online, which should encourage more users to make their flight purchases online," said Google on a dedicated press site page.

Responding to the news Andreas Pouros, COO of search and tech company Greenlight, said: "Travel intermediaries should be very concerned, as Google moves towards becoming central to consumers’ travel purchasing behaviour."

The acquisition will benefit passengers, airlines and online travel agencies by making it easier for users to comparison shop for flights and airfares and by driving more potential customers to airlines' and online travel agencies' websites. Google won't be setting airfare prices and has no plans to sell airline tickets to consumers.

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