The ongoing protest from budget hotels owners against OYO has taken a larger shape as the Budget Hotel Association of Mumbai has formed a pan India alliance to boycott the Softbank-backed company.
This comes soon after FHRAI (Federation of Hotels and Restaurant Association of India) had threatened nationwide protest and hotel owners planned to issue legal notices against OYO over deep discounting, high commissions and frequent changes in arbitrary contract.
The new association called HACI (Hotel Association Confederation of India) is planning a city-wide protest and expected to have supported by 47 small associations having 8,000 member hoteliers.
According to Ashraf Ali, joint convenor, HACI, 50-60 hotels in Jaipur will also join the drive if OYO doesn’t settle the issue by January 15, reports ET.
Ali alleged that OYO is trying to approach individual hoteliers, which is unlawful. He also said that payments are held up and hidden charges levied by OYO are the major reason behind the furore.
The association also has filed an online petition to highlight the issue.
Entrackr has reached out to OYO for comments. We will update the post as response comes in. Last month, the company had issued a press statement after FHRAI warning saying that the regulatory body has been misguided by certain bodies with vested interest, and not necessarily the franchise owners.
Not only OYO but Go-MMT (goibibo and MakeMyTrip) group was also under the radar of FHRAI. The association accused them of exploitative, unethical and divisive business practices, leading to predatory pricing.
Responding to FHRAI allegation, the company’s group chief executive Deep Kalra said that FHRAI can’t dictate MMT’s commercial agreements with its partner hotels.
Meanwhile, FHRAI is also planning to approach CCI (the Competition Commission of India) and the tourism ministry over the matter.
