In a latest development, the Hotel Owners’ Association (HOA) of Mysuru has decided that 400 of its hotel members will block their inventory to Goibibo and MakeMyTrip (Go-MMT) unless the OTAs agree to the terms put forth by the association. The association had recently convened a meeting of its members in the city to regulate terms of operation with the OTAs and hotel aggregators and put an end to exorbitant commissioning and deep discounting tactics. Last month, hotels in Sikkim under the Sikkim Hotels & Restaurants Association (SHRA) terminated their contracts with Go-MMT after the OTAs did not meet the terms outlined by the association. Since December of 2018, several hotels across the country have voiced concerns and in some cases stopped conducting business with the erring Online Travel Aggregators (OTAs) and OYO. “The OTAs and OYO are destroying the very fabric of hospitality under the guise of disruption. They are literally bullying hoteliers, flexing their muscles with seemingly unlimited funds, access to technology and consumer data. Hotels took their bait of increased revenues and rates which today has given them a free hand at employing predatory pricing policies. The indiscriminate discounts offered to customers, outlandish commissions and Performance Linked Bonuses (PLBs) demanded from hotels, hijacking their online and offline brand and business resources, misrepresenting the actual rate received from guests, pitting one hotel against another and other below the belt tactics have left many hoteliers desolate,” says Sooryah P, President, Association of Indian Hotels and Serviced Apartments, Bangalore. Hotels have alleged that the OTAs as well as OYO have no regard for a hotel’s operations, outgoing costs and sustenance. HOA has stated that the OTAs do not factor in the high …
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