Hospitality industry body FHRAI sends notice to Go-MMT, warns of a nationwide protest

In a response to grievances expressed by some of its regional association members regarding high commissions and deep discounting, apex industry body Federation of Hotel & Restaurant Associations of India (FHRAI) has sent a notice to OTA Go-MMT on Wednesday and has warned of nationwide protests if the issues are not amicably resolved.

FHRAI said a number of its members had brought to the association’s notice that the OTA’s business practices were exploitative, unethical and divisive and led to predatory pricing and other market distortions that had the potential to harm both hoteliers and consumers in the long term.

FHRAI said it has written a letter to the OTA outlining the most critical concerns of the hotel industry which include the issue of distortion of market price, the demand for exorbitant commissions and the hosting of illegal and unlicensed bed and breakfast accommodations.

“We are actively engaged with our partner hotels and are in dialogue with FHRAI as well. We are confident that we will be able to resolve any concern amicably,” said a MakeMyTrip spokesperson.

Last week regional associations like the Hotel and Restaurant Association of Gujarat had expressed concerns regarding Go-MMT and had said hotels in Ahmedabad will not accept discounts from December 1 and that commissions would be below 18%.

The developments have led to messages on cancellations on social media platforms like WhatsApp.

“Please do not process any hotel or air bookings through MakemyTrip and Goibibo . These two sites are banned from today for any booking on hotels and the hotels are cancelling the customers coming through this site.

Please inform all close ones,” read one such message on WhatsApp.

MakeMyTrip CEO Rajesh Magow said it was business as usual and that all bookings on its platform including in Ahmedabad were being honoured.

“There is misinformation being spread in social media about hotel bookings on MakeMyTrip and Goibibo not being honoured. This information being spread is completely baseless. We continue to operate our business as usual, with approximately one lakh room nights booked just yesterday on our platforms,” he added.

Hotels have alleged that the OTA charges commission that can go upto 40% and that the exorbitant commissions have been adversely impacting revenues, business and the livelihood of hoteliers.

“One of the biggest concerns is that after securing discounted rates from a hotel, the OTAs further discount it on their online platforms without the hotel’s consent. This damages the hotel’s reputation, and also simultaneously distorts the market scenario. Ironically, the OTAs have a clause in their agreement that forbids hotels from discounting their own rates but are themselves free to do so. This disparity is not just unfair but is clearly intentional and is done with the objective of market cannibalization,” said Gurbaxish Singh Kohli, VP FHRAI.

Source:-https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/hospitality-industry-body-fhrai-sends-notice-to-go-mmt-warns-of-a-nationwide-protest/articleshow/66953670.cms

Comments

0