Tag Archives: FHRAI

Federation of Hotel & Restaurant Association of India (FHRAI) has requested their members to refund 100% deposit on bookings made by travel agents. Gurbaxish Singh Kohli, Vice President, FHRAI, and President of HRAWI, has said, “We have advised all our hotel members to give 100 per cent refunds to the travel agents through whom the bookings have come. Some of them may have not done so. But they are definitely deferring the dates. We have advised them not to do this because at the time of crisis to gain the confidence of the guest, one must offer immediate and 100 per cent refund whenever asked for. Of course, deferment of dates is already there. We request the travel agents to try and influence the airlines – certain airlines have not been kind enough to refund. They are only offering a change of date. Unfortunately, that is not how it will work specially at a time like this. We are a service industry and customers are of prime importance.”

Gurbaxish Singh Kohli, Vice President, Federation of Hotel & Restaurant Associations of India (FHRAI) and President of HRAWI, has said that the association’s hospitality institute has launched new courses that were to start from March 2020. He says, “We have an institute called FIHM, which is short for FHRAI IHM in Greater Noida and keeping the demand for shorter courses in mind and so many new trends emerging, we have introduced short-term courses on FOSTAC and FSSAI that involve skill development. This is also something that the government is pushing. We have these courses ready and they were due to start immediately but now we have kept it on hold because of the unfortunate coronavirus situation. We will start them as soon as it comes under control. Apart from short-term courses, we also have the regular courses but we have stressed in these short courses as that’s the need of the hour. There will be guest lecturers and visiting facility for this as well.”

Voicing his opinion of the Union Budget, Gurbaxish Singh Kohli, Interim President, FHRAI, said, “The industry expectations were high but the Union Budget has neglected us completely and we are disappointed yet again. While the Govt. wants to give impetus to hospitality and tourism and our. PM has envisioned big things for the sector, there is no mention except for the 17 tourist-friendly spots which we welcome. We were expecting reforms in rate slabs of GST, Input Tax Credit and a definitive step to boost the domestic and inbound traffic. Hospitality plays a vital role in the growth of the economy therefore this sector cannot be ignored. It is one of the biggest contributors to GDP, taxes, Foreign Exchange and most importantly in generating employment. The success of Incredible India lies in managing its hospitality and tourism right and requires policy support.”

The Sikkim Hotels & Restaurants Association (SHRA) recently convened hoteliers’ meeting in Gangtok during which it was unanimously agreed to not continue conducting business with Go-MMT until the concerns were addressed and resolved. Effective January 16, 2019, hotels in the state have indefinitely closed inventory to the OTAs and have decided to not honour any new bookings that might come through. During the meeting, SHRA member hotels also decided to terminate their contracts with Go-MMT immediately. Pema Lamta, President, SHRA, said, “We are in solidarity with the country’s apex hospitality body – Federation of Hotel & Restaurant Associations of India (FHRAI) and also our regional body – Hotel & Restaurant Association of Eastern India (HRAEI) in uniting against the OTAs’ unfair and discriminatory business practices. We have made an official appeal to all our members to not honour Go-MMT bookings from January 16, 2019, and have requested them to terminate their contracts with the OTAs immediately. However, we will accommodate guests who have already been booked through Go-MMT even after the 16th. We do not want our guests to be harassed or inconvenienced. However, they will be requested to make payments directly to the hotel instead of to the OTAs.” Many other hotel Associations across India have accused the said OTAs of charging exorbitant commissions, unfair accounting practices and unauthorised and further discounting of hotel prices set by hoteliers. The boycotting of the two online portals gained momentum after Ahmedabad Hotel Association had first raised the issue, which many other associations and hotels followed on later. “SHRA had earlier written to OTAs with concerns raised by local hotels and even held meeting with them. The association had raised specific concerns …

The Federation of Hotel & Restaurant Associations of India (FHRAI) has reached out to the Ministry of Tourism (MoT) regarding the hotel industry’s ongoing dispute with Goibibo, MakeMyTrip and OYO requesting its urgent intervention for redressal of hoteliers’ grievances. After a month of failed attempts to amicably resolve issues with the Online Travel Aggregators (OTAs), the apex hospitality body has written to KJ Alphons, Union Minister of State (I/C) Tourism, outlining the major issues of concern to the industry because of the OTAs’ unfair and arbitrary business practices. A number of FHRAI’s members are experiencing hardships due to the OTAs’ business ethics which are exploitative, unethical and divisive, leading to predatory pricing and other market distortions. The letter to the Ministry states that the hotel industry in the country is going through a very challenging phase which is threatening the livelihood, business, investments and entrepreneurial initiative and spirits of the hospitality industry, and thereby eroding the viability of the sector. “The hotel industry, especially the budget and mid-market hotel segment is reeling under the adverse business tactics of the OTAs. The OTAs’ malpractices are affecting the hoteliers’ livelihood and business. These hoteliers who are part of the local and city hotel Associations across the country have approached FHRAI seeking consultation and support, and are in solidarity with the Federation. The FHRAI has tried to resolve the issue directly with the OTAs, however instead its CEO has chosen to dismiss FHRAI’s role in the matter. It leaves us with no choice but to ask for the Government to step in and create a norm for the OTAs just as the Commerce Ministry has done for the e-tailers recently,” says Gurbaxish Singh Kohli, …

After MakeMyTrip (MMT) group’s chief executive Deep Kalra’s recent comment that the Federation of Hotel and Restaurant Association of India (FHRAI) has no locus standi to determine commercial agreements between MMT and the establishments on its platform, Gurbaxish Singh Kohli, VP, FHRAI, says, “Goibibo and MMT have been exploitive, unethical and adapted divisive business practices, leading to predatory pricing, market distortions and cannibalisation. I fail to see how our letter clearly worded as requesting to “resolve” the situation would be misconstrued as trying to “dictate” terms. India has approximately 100,000 establishments which provide accommodation. Approximately, 65,000 are structured licensed establishments, out of which around 45,000 hotels are stand-alone hotels. “FHRAI has never got involved all these years in any negotiations with standalone vendors but takes a strong stand when the industry faces any outside coercion or intimidation. It is only when 1000’s of hoteliers realised Goibibo and MMT’s arrogant method of pressurising the small hotels in high commissions, more free rooms, started price control on the owners. FHRAI has, in its fiduciary duty stepped in to amicably resolve matters. Please note FHRAI is not here to negotiate as wrongly being projected. It is here to ensure that agencies like MMT and Goibibo do not take the industry for granted by parenting such market conditions in which it would be difficult to do business for one party but a win-win situation for the other.” He further said, “Going back to December 7, 2018, whilst the Ahmedabad Hoteliers blocked GOMMT in the city, Kalra wanted to sit with FHRAI and work out the issues. The team sent to “resolve” arrived but with a fixed agenda of “fixing” only commissions that too by a paltry reduction …

The Federation of Hotels & Restaurants Association of India (FHRAI), along with its regional associations, met four representatives from MakeMyTrip to discuss reduction of the commission charged by the OTAs to 15-18 per cent. The meeting was attended by Surendra Jaiswal, President, HRANI and Vice President, FHRAI, along with Garish Oberoi, Immediate Past President, FHRAI and Treasurer, HRANI. Also present at the meeting were Gurbaxish Singh Kohli, President, HRAWI, along with some of the Executive Committee members. Another points discussed in the meeting include ceasing discretionary positioning and self-rating by properties since they have no authority to rate hotels or mention star ratings based on reviews; no predatory pricing and no further discount on rooms without consent of hotels. Apart from it, the association wants that discounting on rooms and its display will be done after the express consent of the hotel and not via the extranet. Several other points raised in the meeting included the service charge on hotel room booking to be rephrased and given a different nomenclature to avoid taxation issues for the hotel, the burden of the loyalty points and discounts passed to their guests to be borne by them from the commission and not to be passed to hotels, a full break-up of pricing in case rate is displayed with full board, commission to be levied on room only and the component of food should not attract any commission, PLBs only with express agreement with hotels not blanket, PLB taxation to be borne by MMT and not the hotel and illegal hotels apartments, B&B to be immediately delisted from the portals — only legal  properties to be listed.

The Ministry of Tourism (MOT) has formulated the guidelines for approval/re-approval of Online Travel Aggregators (OTAs). The scheme is expected to set standards towards accreditation and add value to the dependability and reliability to the aggregators in the online space operating in the organised tourism sector. This is a voluntary scheme open to bonafide online travel aggregators to bring them on a common platform in the organised sector and the guidelines will be rolled out online by year end. There are several players in the OTA segment operating now without any accreditation/validation. One of the risks of letting the market operate unhindered is that unscrupulous players can vitiate the entire market through unethical trade practices. In order to engage with the OTAs constructively, it is imperative that a system is put in place with qualitative benchmarks to accredit them. The paramount concern would be the assurance of quality of service delivery for the customer by the OTA. The major features of the guidelines are: recognition as an approved OTA shall be granted by the Ministry of Tourism, Government of India, for five years, based on the inspection report/recommendations of a committee comprising the concerned Regional Director (RD), a representative of FHRAI and a representative of IATO, and approval of Competent Authority (Chairman, HRACC); the re-approval shall be granted for five years after inspection conducted by a committee of the same constitution, based upon an application, complete and free from all deficiencies, made by OTA along with the requisite fee/documents on the online platform, at least a clear 6 months prior to the expiry of the previous approval. In case the application is complete in all respects and free from all deficiencies is …

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 …

According to a latest research study by Federation of Hotel & Restaurant Associations of India (FHRAI), in 2016-17, rooms revenue contributed a notable 53.6 per cent to the total hotel industry revenue, an increase over its percentage share in 2015-16, and an improvement from the declining trend exhibited in the years 2012-13 to 2014-15. On the other hand, contribution from Food & Beverage and Banquets declined to 39.5 per cent from 41.5 per cent recorded in 2015-16. The contribution of the other operating departments has remained range-bound,with a marginal increase recorded in 2016-17 over the previous fiscal.