Following the recent notice to two Online Travel Aggregators (OTAs), The Federation of Hotel & Restaurant Associations of India (FHRAI), is working with the ministry of tourism, India, to draft guidelines and come up with regulations for approved OTAs. The guidelines are expected to be released by the end of December.
Pradeep Shetty, joint hon secretary, FHRAI speaking exclusively to Express Food & Hospitality, said, “This week we would be having an meeting with OYO and sort out the issues. There is a list of hotels from the unorganised sector which OYO is associated with, leading to unfair business practices. Through this meeting we want to come out with a win win solution for both, OTAs as well as the organised hotel industry.”
“By raising this issue we want to stop these malpractices, monopoly and exploitation of our members and other stakeholders. We want to create a good business environment where everybody thrives and does business ethically and empowers the tourism in the country.”
According to FHRAI, hotel players are alleging that OYO Rooms had initially approached them offering a strategic partnership by sharing room inventories. However with time, as the room aggregator became stronger with deeper pockets, it started twisting the arm that they had once extended for partnering.
In addition, Shetty, stated, “Recently, we had a meeting with Make My Trip and Go ibibo to work on the issue amicably”
In the notice to the OTAs, it was pointed out to the aggregator that it is endorsing illegal and unlicensed Bed & Breakfast apartments, flats in residential and commercial buildings, rooms in chawls and such other independent structures as hotels.