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Stop illegal discounts, hoteliers warn

IANS  |  Mumbai 

The and of (FHRAI) on Wednesday accused two major (OTA) of allegedly offering illegal discounts that are harmful to hoteliers and customers.

Following many complaints from its members, the has alleged that and GoIbibo managements were adopting unethical and exploitative business practices, divisive-led predatory pricing and other market distortions.

"The biggest industry concern is that after securing discounted rates from a hotel, the further discount it on their without our consent. This damages our reputation and distorts the market scenario," said and President

Accusing the of 'market cannibalization', Kohli pointed out that they (OTAs) have a clause in their agreement forbidding hotels from discounting their own rates but are themselves free to do so, besides demanding exorbitant commissions, hosting illegal and unlicenced Bed & Breakfast accommodations.

The commissions range from 18-40 percent, adversely hitting the revenues, business and livelihood of the hotel industry, he added.

Besides these high commissions charges to the hotels, the OTAs offer big discounts from their own end, rendering the hotels helpless and compelled to conduct business in a self-defeating atmosphere.

"An to the issues that threaten our livelihood, investments and businesses is extremely necessary and call for an active dialogue with the OTAs," said



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 17:50 IST