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 Certifying Third Party Intermediaries a Timely Topic Discussed at
Hotel Internet Marketing Strategy Conference; Executives from
Over 40 Hotel Companies Attended

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MCLEAN, VA (Jan. 10, 2005) � Timely and pertinent issues of certifying intermediaries and the new generation of online travel search engines headlined the agenda at the Hospitality Sales & Marketing Association International�s (HSMAI) 3rd Hotel Internet Marketing Strategy Conference held in Los Angeles.

Travel and hospitality executives from more than 40 hotel companies attended the day-long event, which also addressed trademark protection and defending the brand online.  Among those participating were executives from Starwood Hotels & Resorts, Marriott International, Best Western International, Cendant Hotel Group, Hyatt Hotels & Resorts, Choice Hotels International, Luxe Worldwide Hotels, Swissotel Hotels & Resorts, and many others.

�Hotel Internet marketing is such a dynamic piece of the hospitality industry and it makes for some very passionate discussions,� notes James Zito, director of Interactive Marketing & Development, Affinia and co-chair of the Hotel Internet Marketing Committee.  �It is a rare opportunity to gather a diverse and impressive mix of hoteliers, management companies, intermediaries and technology vendors to debate different issues and perspectives in a positive forum,� he adds.

Among the conference highlights were:

Certifying Intermediaries � Understanding the pros and cons of the InterContinental Hotels Group (IHG) Decision

InterContinental Hotel Group (IHG) adopted a new standard for its portfolio of brands for selling rooms via any and all online travel companies by creating 20 certification standards that must be met by third party intermediaries (TPI).  Bill Carroll, visiting assistant professor, Cornell School of Hotel Administration, explored both sides of the issue and examined the potential impact for third parties, chains and individual properties.

In the �he says, she says� saga, IHG pulled out from Expedia and hotels.com saying they don�t meet the standards and certified Travelocity.  Expedia says it�s not about standards.

Carroll discussed the most influential of the TPI criteria created by IHG:

  • The need to break out fees and taxes
  • Accommodate yield (single image inventory) and reservations management
  • No deceitful/predatory advertising methods (misuse of trademark keywords, trademarked keyword bidding, overlay of links and browsers, unauthorized use of IHG customer information)
  • Control unacceptable practices of affiliates.  It�s an industry issue, not a single firm issue says Expedia.  There is a cost to managing the actions of affiliates and who will bear it? Carroll says it�s not just an issue for IHG and IAC.
  • Don�t show �sold out� when inventory is available; it deceives the customer and is unfair to the hotel.  Expedia only displays rates when there is merchant rate availability, so IHG says there is a loss of shopping for the chain and brand as well as guests on contract rates checking availability.
The real issues are about net rates, parity and inventory, stated Carroll.  He added it�s also an issue of market power.  IHG had less than 1,000 properties in Expedia and hotels.com and Expedia has 20,000 properties, so it is likely to have a negligible financial effect assuming other major chains do not follow suit and then there will be consequences.

Online Travel Search Engines: Driving revenue directly to your site

A new breed of price-searching sites are emerging, which take the form of search engines that scan third party travel sites and hotel sites for prices and deals.

Kayak, which considers itself a technology company, spoke of its ability to provide real-time access to rates and offer an objective display that reflects consumer search request and preferences.  Other selling points are that it passes the consumer to the travel seller for transaction and cross-selling and that it is modeled on search companies, with compensation based on traffic not net rate margin.

According to Kayak, consumers start their travel planning on Kayak and end it on advertisers� sites as its model is designed to �efficiently provide qualified leads to partner sites; offer an expanded reach of on-line agencies; allow travel e-marketers to target travelers and facilitate cross-shopping and research on Kayak with no marketing cost to advertisers.

Among the features of the search engine Sidestep are its Toolbar, which facilitates comparison shopping for the consumer, is highly �sticky� and is a channel shift for travel suppliers; its Web site, which is available to all Internet users and also may be integrated into other Web sites; and its Email, which delivers additional �leads� to travel suppliers.

Participating in the panel were: Drew Patterson, director Business Development, Kayak; Don Smith, vice president Hotels, SideStep; Beatrice Tarka, CEO, Mobissimo; and Eric Christensen, president, SearchParty.com; moderator: Bill Carroll, Visiting Assistant Professor, Cornell School of Hotel Administration.

Trademark Protection: The latest on protecting your brand online from Peter M. Ripin, Esq., of Davidoff Malito & Hutcher LLP

�If your competitor sends a pop-up advertisement for his competing hotel brand to your hotel�s website or uses your company�s trademark for keyword advertising, is this an unscrupulous and deceptive business tactic or simply good marketing?� asked Ripin.

Ripin noted that while studies have shown that pop-up advertising is viewed by many people as among the most intrusive and/or obnoxious features on the Internet, it is also considered one of the most effective and profitable advertising techniques.  In fact, a recently published report stated that a number of our most prominent companies were now using pop-up ads to target their competitors� websites including Best Western whose ads appeared on 208 other sites including those of Comfort Inn and Day�s Inn, and Thrifty Rent A Car whose ads were aimed at Dollar-Rent-A-Car.

This update on Trademark Protection Update reviewed the latest domain and trademark protection cases and how they may impact our industry. 

Event partners were Cyveillance, Expedia, eMarketer, Eye for Travel, Hospitality eBusiness Strategies, Hotwire, Proceed Interactive, Real Magnet, Ripple Effects Interactive, Sceptre, TIG Global, Tourscape and VFMII (formerly Visual Frenzy).

Save the date for HSMAI's first Travel Internet Marketing Strategy Conference, April 29, 2005, in conjunction with TravelCom in New York.


 
Contact:
Hospitality Sales & Marketing Association International
8201 Greensboro Drive, Suite 300
McLean, VA 22102
(703) 610-9024
www.hotelinternetmarketing.org
Also See: HSMAI Hotel Internet Marketing Strategy Conference Report; Keyword Bidding, Pop Ups, Pop Unders, Domain Name Piracy / January 2004
Former Executives from Travelocity, Orbitz, Expedia Developing Online Travel Site / October 2004


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