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Thursday, 10 January, 2019, 12 : 49 PM [IST]

OTA issue somewhat settled, Budget Hoteliers to turn the heat on OYO now

Plans afoot to refuse OYO bookings in select cities starting from Jan 15

Commission issue with MakeMyTrip group somewhat settled as the OTAs agreeing to bring down booking commissions to 20%, as per sources in the newly formed Hotel Associations Confederation of India (HACI), the hoteliers will now be turning the heat on OYO, the hotel aggregator and the largest budget hotel chain operator.  This decision has been taken in the light of OYO backing out from the negotiations that were scheduled on January 8 in Mumbai. 

Terming OYO as a “monster”, Ashraf Ali, Joint Convenor of HACI, a confederation of 47 Associations representing budget hotels from across India, informed that OYO has informed about their decision to back out from the negotiations “one day prior” claiming that they are “no more an online aggregator” but a hotel chain.  OYO has said to have communicated that they would only be part of any negotiation if the hoteliers call all the hotel chain management companies active in India.

“OYO came as an online aggregator.  Now they are claiming that they are a hotel chain.  They are taking hoteliers for a ride.  They are taking our customer data and moving the customers to their hotels. Moreover, there are so many hidden charges apart from the commission.  Hoteliers are not paid their dues for months together making survival difficult for those hoteliers who run their hotels from leased properties,” said Ali.  Ali said that the issue has come to a flash point at many places including in the city of Mumbai where hoteliers have locked up OYO officials for non-payment of their dues.

As part of putting pressure on OYO and to bring them around the negotiating table, HACI and its affiliated associations will start refusing OYO bookings in select cities starting from January 15.  Ali said that the action will start from the city of Mysore and Shirdi on January 15. This will be followed up with other cities like Jaipur where OYO has a good footprint, he informed. “We want to do business, but that should be on the ethical and realistic way,” he added.

Commenting on the OTA issue, he said that they will continue to put pressure on MakeMyTrip and Goibibo to further reduce the commissions to a realistic 15 to 18% which is the international practice.

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