FHRAI seeks government intervention in OTAs, hotels dispute

The Federation of Hotel and Restaurant Associations of India (FHRAI) said Saturday that it has requested the government to intervene in the on-going dispute between online travel aggregators (OTA) and hotels. FHRAI has written to Tourism Minister K J Alphons outlining major issues concerning the industry and sought urgent intervention for redressal of hoteliers' grievances, a release said in Mumbai.

"The hotel industry, especially the budget and mid-market hotel segment is reeling under the adverse business tactics of the OTAs. The OTAs' malpractices are affecting the hoteliers' livelihood and business. These hoteliers who are part of the local and city hotel associations across the country have approached FHRAI seeking consultation and support, and are in solidarity with the Federation," FHRAI vice president Gurbaxish Singh Kohli said.

The FHRAI tried to resolve the issue directly with the OTAs, however, OTAs have chosen to dismiss FHRAI's role in the matter, he said. "It leaves us with no choice but to ask the government to step in and create a norm for the OTAs just as the Commerce Ministry has done for the e-tailers recently," he added.

Early this month, hoteliers in Gujarat boycotted OTAs citing biased and unilateral business conduct by them. "One of the most glaring irregularities is the illegal and unlicensed bed and breakfast (B&B), motels or accommodations hosted by the OTAs on their platforms. More than 40 per cent of the room inventory available on the OTAs is illegally operated," FHRAI vice president (north) S K Jaiswal alleged.