U. S. Hotel Industry Could Be Losing $. Billion From Branded Search Terms Search Engine Watch

Competitive brandjacking is a problem which impacts almost every strong online market, particularly where there’s a posh web of channel and affiliate companions. The relationship among a brand and it’s channel partners is symbiotic in nature and geared toward reducing advertising costs for hotels, whilst increasing reach, and in so doing, squeeze more profit. In return for channel companions bearing the danger of actual advertising costs, they get to leverage the trust and attention of being a associate with these favourite brands. Affiliate and channel partners earn fee or benefit from reduced price on rooms.

In the instance below, taken from the report, we can see that the top ad position for a search of a hotel brand in Atlanta faces a full suite of competition. However, one would expect to see only one ad at the head of that search. Try it your self and nearly every major hotel chain and destination has the full supplement of opponents, all of whom are pushing the price per click up for the hotel, whilst taking commissions for any purchaser they convert. Given that the buyer used the hotel brand name and vacation spot in their keyword search, you can still fairly extrapollate their intent was to book directly with the hotel.

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