So, let's see
hotel.com
hotel.net
hotel.org
hotel.info
hotel.de
hotel.in
hotel.jp
etc.....
We are looking a global market. You have to stretch your imagination some here and think even if all the domains listed above were taken and developed they could all be covering different hotel info, such as info on hotels, reviews of hotels, hotels in particular regions, cheap or expensive hotels, etc.. The possibilities are endless. Now, on the dilution topic. If my .com is hotel.com offering the cheapest hotels and 17 other websites offer the same thing with the same key word "hotel" with different extentions could they all be successful? 100% YES!! because domains operate on a global level. Your customer is 1 of a billion and he/she is in Asia, Europe, US, etc.. You have to start think outside your local stores, your local communities. Think of a .com as a local store for a moment, can another store open next to Walmart and survive, sure, could 2 or 3 or 4 more? Sure, if the population and diversity of tastes exsist. As a matter of fact ONE Single Walmart could not handle the population of the City of NY, that's just one city. Another point to consider, someone could buy all hotels.*** and point them all to the same website. There is plenty of room for everyone to join the party and best websites will recieve the most traffic, right now it's simply that .com is king but I do believe in the future you will see other tld's with better development taking the crown. You'll see, we live in a exciting times jump on board and don't jump off because the ride is just beginning. Cheers.
Acro