Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Report reveals hotels losing £1.3b online to brandjacking

24 May 2011 by
Report reveals hotels losing £1.3b online to brandjacking

Online traffic lost to competitors and unnecessary commission payments costs hotels £1.3b a year worldwide, according to a report from MarkMonitor.

The Brandjacking Index reveals that more than 580 million visits from travllers are siphoned away from online booking sites of major hotel brands.

The search traffic is being intercepted by online travel agencies, where it is potentially diverted to competitive properties. As a result, hotel brands lose customers and revenue to those competitors or pay unnecessary commissions.

Frederick Felman, chief marketing officer of MarkMonitor, said that with online travel flourishing, it is vital that hotels their intended traffic.

"The hotel industry's e-commerce experience demonstrates how easily online traffic and the resulting revenues and customer relationships can be lost if a brand protection programme is not in place and enforced," he said.

The study from MarkMonitor, which specialises in enterprise brand protection, examined five global hotel brands, including economy, mid-market and luxury brands, during the early spring of 2011. It scanned ecommerce sites, consumer marketplaces and email campaigns promoting the hotel brands.

More than 1,750 online travel agencies which has purchased keywords using one of more of the five monitored brand names were identified, resulting in traffic being diverted to competitive properties.

The study also highlighted cybersquatting, a technique which abuses the domain name registration system by registering domain names containing brands not owned by the domain registrant. Over 2,100 cybersquatted domains using the five brands surveyed were identified.

The full report from MarkMonitor can be downloaded for free at www.markmonitor/resources/brandjacking-index.php.

Where does OFT investigation into online rates leave hotels >>

Global hotel booking online rises >>

Are hotels paying out too much for online bookings >>

By Janet Harmer

E-mail your comments to Janet Harmer here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs

Looking for a new job? Find your next job here with Caterersearch.com jobs

[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking