Are Hotels and Online Travel Agencies Colluding on Keyword Bidding?
Photo Credit: A Google search for 'hilton garden inn new york' finds no major online travel agencies running ads based on Hilton's keywords. Hilton Garden Inn
Skift Take
The largest hotel chains and online travel agencies have deals on paid search marketing practices that effectively trim their ad spend on Google. But smaller players remain unprotected from tough marketing tactics.
It began simply enough. A small company wanted to make some money in online travel. So it joined Expedia Affiliate Network, where the online travel agency shares its hotel inventory with third-parties, sharing part of the commissions on any bookings.
To juice their returns, the entrepreneurs became assertive in marketing. The company bought ads on Google, using its AdWords program, which auctions ads tied to search terms. The affiliate outbid other players on keywords associated with hotel brand names.
InterContinental Hotels Group, Choice, and Hilton promptly sent the affiliate cease-and-desist notices, according to The Capitol Forum, a Washington-based investigative news and legal analysis publication. Capitol Forum reported the incident Tuesday, keeping the name of the affiliate anonymous.
"The IHG and Hilton letters accuse the affiliate of violating trademark laws, while the Choice letter specifically states that the company [Choice] entered into a 'global agreement' with
