FHRAI to approach Competition Commission and Tourism Ministry
Federation of Hotels and Restaurant Association of India (FHRAI) told ET that it is planning to approach the Competition Commission of India and the tourism ministry and that all four regional associations under FHRAI – North, South, East and West – are in line with its stance of nationwide protests if their demands are not met.
Two weeks before FHRAI has warned of action against room aggregator OYO for large-scale breach of contracts, jeopardizing the safety of consumers and violation of laws. The move comes a week after the apex body issued a notice to online travel aggregators (OTAs) – MakeMyTrip and Goibibo – for amicably solving pricing related issues with its member hotels/ associations.
In the notice sent on Monday, 10th December, FHRAI told OYO that it is endorsing illegal and unlicensed bed and breakfast (B&B) apartments, flats in residential and commercial buildings, rooms in chawls and such other independent structures as hotels.
“We plan to meeting with the Competition Commission of India and the tourism ministry. They (platforms) have assumed a very dominant position and based on that, they are arm-twisting hoteliers,” said Pradeep Shetty, honorary joint secretary, FHRAI
“They are doing rapacious discounting without the hoteliers’ consent which is creating an unhealthy business environment. Four regional associations and 25 to 30 local and city associations have also pledged support for nationwide protests,” added Pradeep
FHRAI said a number of members had brought to its notice that the business practices of Goibibo and MakeMyTrip were exploitative, unethical and divisive and has led to predatory pricing and other market distortions that had the potential to harm both hoteliers and consumers in the long term.
Earlier Gurbaxish Singh Kohli, Vice President of FHRAI had said that they have sent a fresh notice to GoIbibo and MMT to immediately stop contacting individual hoteliers, and offering them customized terms.
“We have also intimated the hotel fraternity that no agreement has yet come through and to not fall prey to any prospective offers which do not address their issues in its entirety,” added Kohli.
