If the OTAs claims to increase hotel RevPAR, then why do they advertise on hotel brand names? Shouldn’t they focus on destination searches instead? A list of intercontinental hotel chains seem to have convinced OTAs to refrain from this practice. However to independent hotels or [hotel management] groups they are not showing much consideration. This SEM hijacking or brand keyword robbery needs to stop.
Consumers search for a hotel name, because of a recommendation from a friend or a review they read online, or even better, because of the offline marketing strategy of a hotel . Through advertising on the hotel’s name in the search engines, the OTAs intend to convert this direct client into their own client for that hotel or worse, re-direct them to another hotel. The OTAs aren’t really paying consideration to their promise to increase tourism revenue when it comes to bookings for independent hotels. They blatantly advertise on brand keywords on Google, Yahoo and Bing.
As a solution we recommend hotels to include clauses in their contracts with the OTAs to prevent such brand hijacking practices. It is a very important step in controlling your distribution cost and production. Once the OTAs notice that you know what you are talking about as an hotelier, they will shift gears. We informed all our distributors we will only work with partners that respect the brand and trademarks of our hotels. Clauses and addendums were added to the contracts outlining in which we want to work together with the OTA’s and their affiliate websites, creating a win-win situation.
It is time the OTAs accept that hotels have woken up and it is time for change. If they don’t stop this advertising on hotels’ brand names and trademarks, they will stand to lose their product. As the economic outlook improves, hotels will gain the upper hand in this partnership and look for alternatives. Hotels will find out that direct distribution through effective internet marketing is cheaper and new supplier friendly OTAs will arise and challenge the status quo. In the end the hotels have the rooms, which are the real key to this distribution market, and the power of negotiation.
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