MakeMyTrip-OYO deal: Independent hoteliers raise concern

A group of independent hotel owners who have their properties listed on MakeMyTrip met with executives of the Nasdaq-listed company last month, raising concerns about its commercial agreement with hospitality company OYO. Tens of hoteliers, who are also members of Delhi Hotels and Restaurants Owners Association, met MakeMyTrip (MMT) officials individually and sought assurances that its arrangement with SoftBank-backed OYO would not affect bookings and revenues independent hotels earned from the MMT and Goibibo platforms.
They have given us verbal assurances that there will be no disruptions and OYO will not favoured over independent hotels,” said Sandeep Khandelwal, president of the association that claims to represent about 400-500 small and mid-sized budget hotel establishments.
“MakeMyTrip has over 40,000 hotels listed on its platform, a significant portion of which are small independent establishments. The arrangement with OYO should not affect us,” said Khandelwal who owns Hotel Shri Nanak Continental in Delhi.
A second independent hotel owner who has met with MMT executives said that since the announcement of the MakeMyTrip and OYO agreement, ratings and reviews of the latter’s properties had improved substantially on the online travel platform.
A MakeMyTrip spokesperson, however, said the company had not negotiated with any association, but has been in touch with its partner hotels as part of its regular business outreach.  “As part of our regular business, we have frequent direct meetings with our hotel partners. We have had no meeting with any such association, nor have we been approached by one,” the spokesperson said.

Source: ET Online