Hoteliers slam online travel firms over illegal discounts

The Federation of Hotel and Restaurant Associations of India (FHRAI) yesterday accused two major online travel aggregators (OTA) of allegedly offering illegal discounts that are harmful to hoteliers and customers. The FHRAI has alleged that MakeMyTrip 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 OTAs further discount it on their online platforms without our consent. This damages our reputation and distorts the market scenario,” the FHRAI said. “An immediate solution to the issues that threaten our livelihood, investments and businesses is extremely necessary and call for an active dialogue with the OTAs,” the association said.