Tag Archives: Western India

In response to grievances expressed by its members, the Federation of Hotel & Restaurant Associations of India (FHRAI) has put Online Travel Aggregators (OTA), MakeMyTrip and Goibibo on notice. A number of its members had brought to the association’s notice that the OTAs’ business practices which were exploitative, unethical and divisive led to predatory pricing and other market distortions that had the potential to harm both hoteliers and consumers in the long term. FHRAI has written a letter to the OTAs outlining the most critical concerns of the hotel industry which includes the issue of distortion of market price, demand for exorbitant commissions and hosting of illegal and unlicensed bed and breakfast accommodations. “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 cannibalisation,” says Gurbaxish Singh Kohli, Vice President – FHRAI & President – Hotel and Restaurant Association of Western India (HRAWI). Hotels have alleged that the OTAs charge commission that range anywhere between 18 and 40 per cent. The exorbitant commissions have been adversely impacting revenues, business and the livelihood of hoteliers. The Federation has written to MMT and Goibibo in the hope that they will understand the ground level situation of hotels. However, based on the previous experience of hoteliers whose attempts at negotiations were neglected …

Hotel and Restaurant Association of Western India (HRAWI), the apex body of restaurateurs and hoteliers of Western India, has initiated a full-fledged social media campaign on the recent issue of liquor ban. “Through the social media we will convey a few facts that, in normal times, would have been apparent. In the current state, unfortunately, facts are obscured by surround sound. The facts to be considered are alcoholism is a disease and a social evil; drunken driving is a crime; and, hotels and restaurants serve alcohol. What is of significance is that these facts are not correlated. Any arrow of continuity that may exist is forced. The compulsive alcoholic will find ways and means for consuming alcohol and he will continue to drive after drinking. Just as locking up girls at home is not a solution for preventing rapes, banning hotels from serving liquor cannot be a solution for ending the menace of drunk driving. Drunk driving is a crime, and it should be treated as one,” says Dilip Datwani, President, HRAWI. HRAWI will run a series of hashtags on Facebook that will try and explain some of the common misconceptions. “One million jobs, Rs. 200,000 crores loss to the exchequer, possible closure of 15,000 establishments is not a small thing. It is a huge social cost to pay. And we would not have minded being sacrificed if the ban were to yield any results. But reality is that all the job losses and other damages would be wasted. Statistics prove that there is a correlation between drunk driving and enforcement; and not between drunk driving and number of restaurants and bars. If true, there would be no drunk driving …