Time for OTAs to unbelt

Terms or commissions not yet renegotiated, says FHRAI

Online Travel Aggregators have been urged to stop contacting individual hoteliers offering customized terms. The OTAs (MMT-Goibibo-Oyo) are required to meet office bearers of the Federation of Hotels & Restaurants Association of India (FHRAI) to discuss and finalize uniformed terms that would be mutually beneficial to all parties.

This new development follows recent guidelines that were set up by the Ministry of Tourism to be adhered to by all the OTSa seeking Approval / Re-Approval under the OTA Category.

“We would like to inform you that we have not yet renegotiated any terms or commissions with any of the above OTAs/Aggregators,” said FHRAI Vice President Mr Gurbaxish Singh Kohli in a news release on Dec 18. “FHRAI is determined to break the divisive business practice adopted by such OTAs and requests hoteliers not to fall prey to such individual and customized terms, against uniform business ethics, for the bigger cause of hoteliers.”

The FHRAI VP revealed that certain OTAs have reached out to several hotels across cities with the paper/contract/agreement of 20% or further reduced commission, requesting hotels to stamp and sign or accept the document, stating reduced commission as per renegotiated terms with FHRAI.

Added Mr Gurbaxish: “We further state that these terms are neither discussed with, nor ratified by FHRAI and are proud of the hotels contacted, who have unanimously rejected their proposal and refused to accept or sign any such document produced. They are standing united with FHRAI by not buying into the OTAs’ temporary promises. FHRAI is working for this cause and we request you to stand by your allegiance and not accept any customized terms.”

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