Reacting on the ongoing protest and disagreement by several hotels associations with MakeMyTrip, the company’s group chief executive Deep Kalra has said that no association including FHRAI can dictate MMT’s commercial agreements with its partner hotels.
According to Kalra, the group deals directly with its partner hotels and does individual contracts with each entity. The group had reached out to FHRAI to settle the issue, however, Kalra clarified that the protest backed by FHRAI has no meaning at all.
Additionally, MakeMyTrip executives had met regional associations, such as the Hotel and Restaurant Association of Gujarat, along with hotels in the region, and claimed to resolved the issue.
The development comes after FHRAI sent notice to MakeMYTrip and Goibibo, accusing them of exploitative, unethical and divisive business practices, leading to predatory pricing.
These association also claim that these OTA platforms give hefty discounts even without the partner hotel consent.
Separately, FHRAI has been planning to meet the Competition Commission of India and the tourism ministry. All four regional associations under FHRAI – North, South, East and West – will also join the nationwide protests if their demands are not met.
Not only MMT group, but Softbank-backed Oyo had also faced similar wrath from the association that alleged that it has been illegally endorsing residential apartments, commercial buildings, unlicensed bed and breakfast apartments, even rooms in chawls as hotels.
Oyo, however, denied such allegations.
The development was reported by ET.