Why Is IBM Investing In An Advance Online Travel Company Shopping App

International Business Machines Corp. (NYSE: IBM) on Tuesday announced a $5 million (Series A funding) investment in WayBlazer.

The company noted in a press release that the investments are part of the company's $100 million commitment to "drive new innovations and business solutions that build on Watson."

WayBlazer's Discovery Engine uses Watson technology to absorb massive amounts of data, while linking places, offers, and preferences, with social, cultural and economic data for recommendations tailored to each consumer.

WayBlazer was co-founded by Terry Jones who founded Travelocity (now wholly owned by Expedia Inc (NASDAQ: EXPE) and was also a founding member of Kayak (acquired by Priceline Group Inc (NASDAQ: PCLN)). Manoj Saxena, WayBlazer's other co-founder was a former GM at IBM Watson.

"This is yet another exciting milestone in our journey with Watson to transform the way travelers seek advice," said Felix Laboy, CEO of WayBlazer. "We're honored that IBM and our other investors are committed to helping us grow our catalog of offerings and customer base in an effort to further establish WayBlazer as the industry's most robust online travel advisor."

IBM noted in its press release that consumers explore 20 or more websites to research destination, flights, hotels and activities, including Tripadvisor Inc (NASDAQ: TRIP).

As opposed to Tripadvisor's crowd-sourced information and user generated reviews, WayBlazer is developing intelligent discovery solutions that deliver contextual, personalized advice and insights for consumers across all phases of travel, from inspiration to transaction.

IBM argued that by using the power of Watson, WayBlazer will transform the way travelers seek advice with a trusted travel discovery experience that can be individualized for every user, every time.

Note: within the same press release, IBM also announced a $7.5 million Series C funding in Sellpoints, a provider of e-commerce and customer engagement solutions.