Tag Archives: FHRAI

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.

Garish Oberoi, President, FHRAI, says the hospitality industry has been repeatedly asking for infrastructure status which hasn’t been mentioned this year as well. “Among the positives in the Budget is the Rs. 500 crore allocation for ‘Operation Green’ to promote Farmer Producers Organisations (FPOs), agri-logistics, processing facilities and professional management,” Oberoi adds. He notes that focus on technology is very relevant in this digital age. “The Budget allocated to the Railways to the tune of Rs. 148, 528 crore to build infrastructure, laying tracks, Wi-Fi and CCTVs will help improve them. In tourism 10 prominent tourist sites will be made into national tourist sites. New Greenfield Airports are in the offing and building airport capacities to handle 1 billion trips can give a boost to connectivity. Post demonetisation and GST many hotels have become Non-Performing Assets (NPAs). We still await measures by the government to deal with NPAs. In totality, the Budget is more for the ease of living and not so much the ease of doing business. While the focus on healthcare and education is commendable, the biggest challenges to growth and employment generation are low credit offtake and ease of doing business, neither have been supported by the Budget,” Oberoi says.

With an aim to promote the tourism avenues of Uttar Pradesh in the world, Government of Uttar Pradesh is set to organise International Conclave from February 20-22, 2018 in Lucknow. A meeting of stakeholders chaired by Akhand Pratap Singh, IAS, Special Secretary, Department of Tourism, Govt of UP & Managing Director, UP State Tourism Development Corporation Limited was held on November 29 at Paryatan Bhawan, Lucknow. Surendra Kumar Jaiswal, President, Uttar Pradesh Hotel & Restaurant Association (UPHRA) who is also Hony. Secretary of FHRAI and HRANI along with fellow hoteliers and stakeholders attended the meeting to discuss the roadmap of the event.

Rahul Lall has been appointed as the Secretary General for FHRAI (Federation of Hotel and Restaurant Associations of India). He completed his Post Graduate Diploma in Hotel Management from The Oberoi School of Hotel Management, New Delhi. He is from the Management Trainee batch(1985-1987). Prior to this he did his Bachelor of Commerce (Honours) from Delhi University. He is an alumnus of St. Xavier’s Collegiate School, Kolkata and Don Bosco School, Chennai. He brings with him over 30 years of progressive hotel experience spanning renowned hotel chains across the country. He has extensive operational, administrative and bottom line management experience. Coupled with a strong leadership and financial skill sets, he is ideally suited to take on the responsibilities of running the day-to-day administration of FHRAI. A Professional hotelier, he has worked with the Oberoi Group of Hotels for 15 years and thereafter with Sarovar Hotels. He has been in various capacities as General Manager, Area Director and Vice President Operations. He has over seen pre-opening and successful openings of various hotels. Prior to joining FHRAI he held the role of the Vice President Operations for the Dangayach Group of Hotels (Marriott Jaipur, Ramada Jaipur, Chomu Palace Hotel Jaipur, Four Points by Sheraton Agra and Park Plaza, Jaipur).

The Federation of Hotel and Restaurant Associations of India (FHRAI) has elected Garish Oberoi as its President for the term September 2017-2018. This was announced during the federation’s 61st Annual General Meeting (AGM) held at the Le Meridien New Delhi, on Sept 23. A seasoned hotelier, Oberoi has been in the hospitality industry for over three decades. He previously held the post of Vice President & Treasurer, FHRAI. He holds a Masters of Business Administration from IIFT and is a Graduate in Economics from the University of Delhi. Also, Surinder Jaiswal has been elected as the Honorary Secretary of FHRAI. Speaking on the occasion, Oberoi said, “I am very grateful for this opportunity. I would want to move ahead taking together all stakeholders in the tourism and hospitality fraternity. Key focus would be on getting the GST reduced further to at least 12 per cent. I would also be emphasising on skill development and increasing FHRAI membership base. The next FHRAI Convention will be taking place in the heritage city of Lucknow.” Oberoi is the former Director of Chandigarh Industrial & Tourism Corporation Ltd. He has been a special examiner of Hotel Management & Catering Technology at Rohilkhand University and has been Asst. Governor of Rotary Bareilly. Besides being on the Advisory Board of Carnegie Mellon University’s Indian subsidiary, Oberoi holds important position in several social and educational organisations of Bareilly. He is a keen golfer as well. As the President, Oberoi will supervise and guide the administration of the Federation that is run on a day-to-day basis by the Secretary General and the Secretariat.

M.P. Purushothaman, Chairman & Managing Director, Empee Group, has been named as the DDP Trailblazer at the South India Travel Awards in Kochi. He forayed into the industry with a three star hotel. Thanks to his vision, today he is at the helm of a conglomerate that includes sugar, hospitality, property, power, and packaging across South India. He has been the President of Federation of Hotels & Restaurants Association of India (FHRAI), for three terms and has also been the President of the Tamil Nadu Hotels & Restaurants Association for 18 long years, and President of South India Hotels & Restaurants Association for 10 years. It was under his leadership that FHRAI had set up a world-class institute for hotel management in 2016.

The Federation of Hotel & Restaurant Associations of India (FHRAI) is exploring legal remedies with regards to the recent ban on sale of liquor. Speaking at the occasion, Dilip C. Datwani, Vice President, FHRAI, said “Rs. 200,000 crores loss to the exchequer and closure of more than 1 lakh establishments is not a small thing. We would not have minded being sacrificed if the ban were to yield results. But reality is that all the job losses and other damages would be wasted. The object sought would not be achieved”. “Total consolidated loss to both States and to the industry will be around Rs. 220,000 crores. The entire MICE industry including weddings, corporate events will be negatively affected,” said Garish Oberoi, VP, FHRAI. “There has been an unprecedented blanket ban on all national highways across the country without seeing the practical aspect of the topography & terrain of the cities, in the process having affected hotels and restaurants, who have invested crores of Rupees towards the development of the tourism industry in the country. For example, Darjeeling, which falls on NH 55, has hotels stretched over 77 kms from the very base of the town of Siliguri that are directly affected,” further continued T. S. Walia, Vice Presidents, FHRAI. ‘The judgement has effected those establishments that operated legally and we are not takeaways and serve for consumption in premises only. Many entrepreneurs who have taken loans will be placed at a disadvantage. It will make their properties non preforming further ‘continued S. M. Shervani, EC Member, FHRAI.

In the wake of a statement issued by the Department of Consumer Affairs on Jan 02, 2017 implying Service Charge billed by restaurants are optional, the Hotel and Restaurant Association of Western India (HRAWI) has come out with a clarification to all industry stakeholders. In a letter to the Department of Consumer Affairs, the Federation of Hotel and Restaurant Associations of India (FHRAI) the apex body of hotels and restaurants, has appealed for withdrawal of the advisory as it has been creating chaos and disruption in the smooth functioning of restaurants across the country. The association has clarified that there is nothing illegal about levying the fee and has citied judgements by the National Consumer Disputes Redressal Commission, New Delhi which is the highest consumer forum of the country as well as by the Hon’ble Supreme Court, which have upheld the legitimacy of this practice. The association has pointed out to cases in which the practice of levying a Service Charge has been upheld by the law. In one of the cases, the National Consumer Disputes Redressal Commission, New Delhi in Nitin Mittal vs. Pind Baluchi, (2012) NCDRC 444 the Association has been advised that such a practice is not an “unfair trade practice” within the Consumer Protection Act. In another case, the Hon’ble Supreme Court too has specifically acknowledged the practice of including “service charge” in the bill by hoteliers and other cases in lower courts which too have recognized the practice. “Service charge is the amount paid to the staff of the restaurant or other similar establishments. An establishment may choose to include this amount in the bill itself and the percentage may vary from 5 per cent …