Miami -- Can typo-pirates, spammers and search engines filch online revenue? Is it legal? How does one find them, and more importantly, how can one fight them?
The Hospitality Sales & Marketing Association International's Hotel Internet Marketing Strategic Conference, held in December at the InterContinental Miami, featured speakers and panel discussions about these and other issues about brand and trademark protection, and the pros and cons of keyword bidding and pop-up marketing.
Forty-five percent of travelers used the Internet during 2003 as their primary planning resource, and marketers who aren't keeping a watchful eye on their online branding might be losing considerable revenue, according to Brian Murray, v.p. of client services for Cyveillance, an online intelligence company.
Everything from misspelled addresses to spamming with mislabeled links (some of which are scams) are used to lure or misguide customers away from the sites they're searching, Murray said.
"Hospitality brands are abused prolifically to divert online customers and capture revenue," he said.
When one downloads certain software utilities, unauthorized adware embeds itself in one's browser, adding unwanted pop-up ads and logos. The adware examines keywords, URLs and search terms on a consumer's browser and then launches targeted ads to them.
"If someone is popping into your site uninvited, how do you work with that?" asked Bill Carroll, panel facilitator and visiting assistant professor at the School of Hotel Administration at Cornell University.
"We put a 'predatory attack' clause into all our [partner] agreements, but it's sad we had to ask," said Mike Wylie, v.p. of e-commerce for Wyndham International. "There is a place for [intermediaries], though, if we set strict guidelines and deadlines."
Jens Thraenhart, director of Internet strategy for Fairmont Hotels & Resorts, cancelled a contract with one third-party site.
"They didn't think they had to stop [attacking our site]," Thraenhart said. "We're now working on rebuilding a partnership with them, but we have to create a win-win situation."
Michael Menis, director of global marketing services for InterContinental Hotels Group, recommended clauses to franchisees, even though many contracts are ultimately between the hotel and the intermediary.
Keyword positioning
Paid placement is another thorn in the hospitality industry's side, Murray said.
"The hospitality industry has embraced keyword purchasing more than any other industry," he said. "What has rapidly become mainstream has resulted in rampant abuse."
"The consumer does not care [about sponsored links] ... yet," said Peter Greenberg of The Travel Channel. "Consumers have lost loyalty and are cost driven. But hotel sites offering 'lowest rates guaranteed' are hoping consumers don't do the math. Sooner or later, we'll do the math. Once we do, it's war."
Keyword bidding panel members held various opinions about the value of keyword positioning.
"Up to 70 percent of business on top of hotel selling sites comes from keywords, which may cost $6 or $7 [per hit] for each word," said Don Smith, v.p. sales for WorldRes.
Gino Giovannelli, v.p. of e-business strategy for Carlson Cos., said that while 40 percent of Radisson.com's hits come from search engines, their direct submissions netted a return on investment ratio of $13 returned for every $1 spent, while keyword buys garnered a 12-to-1 ROI.
Managing a sizable keyword list is a full-time job, according to Jeff Johnson, director of media for iCrossing, whose keyword ratio is 80-to-20 for natural results versus paid keyword bidding.
"When someone wants a particular brand and is taken to a third party, we've already lost from 18 [percent] to 30 percent to a third party from a customer who was rightfully ours," said attendee Linda Ghaffari of FelCor Lodging Trust.
"In general, it is lawful in the [United States] to purchase a competitor's trademark name in the context of comparative research," Giovannelli said. "A local court in Nanterre, France, though, recently set a precedent by ruling that the sale of trademark keywords is unlawful."
"The people you are mad at are the same people you are selling blocks of room to," said Scott Hyden, g.m. of Travelweb.com. "Don't sell to them, or put it in writing exactly what you want them to do, and if they won't do it, don't sell to them."
Panel members suggested creating a logo or phrase for the tag line, identifying the site as the official hotel site and bolding the URL line for more visibility.
Ads and infringement
How do consumers rate online ads? When Andrew Sherry of USA Today.com's travel department surveyed 200 customers for online advertising preferences, sliding billboards rated the highest at 50 percent, followed by pop-unders, which appear after users exit a screen, at 38 percent.
"Responders were absolutely hostile to floating animation," Sherry said.
Panel members agreed relevance, such as a comparable product to the specific search, was essential to an ad's success.
The conference's final issue was trademark infringement. Companies are required to actively track and protect their respective trademarks, said Peter Ripin, attorney at law, Davidoff & Malito LLP in New York.
If someone infringes on a trademark, a company can send a cease-and-desist letter, which is 85 [percent to] 90 percent effective, but a company shouldn't send anything it wouldn't want to see posted online, Murray said.
If a cease and desist letter doesn't work, companies can file a lawsuit or pursue arbitration.
hmm@advanstar.com
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