Hotels protest and strike against OYO: No discounts for OYO users.

29-Jun-2019

In an outrage, The Kerala Hotel and Restaurant Association(KHRA) had protested a two-day strike against OYO rooms and decided to give a fierce competition by launching a parallel app which will function similar to that of OYO’s. OYO is accused of forcing ridiculous discounts on the hotel owners. Also, there are claims that the platform does not clear the payments of the hotels on time, leading to a strike against OYO. 

The strike started with a procession with 100 hoteliers from Pathadipalam Metro station to the Oyo’s office at Edappally. The protesters symbolically broke tabs which were installed with Oyo property management app in front of the Oyo office. 

Kerala Hotel & Restaurant Association members staging a protest in front of the OYO office at Edappally in Kochi on Wednesday

Though many hoteliers were planning to hand over the withdrawal notice to Oyo as per the agreement, the company has refused to accept it, said KHRA office bearers. The hotel owners have also decided to set the booking in their base rate from June 28. “As Oyo has once again refused to discuss and settle things amicably, we shall only accept bookings at our minimum price from June 28,” said Azees Moosa, KHRA president.

Azees Moosa, KHRA President

T J Manoharan, district secretary of KHRA said,“Oyo’s unfair trade practices are completely illegal. If the benefit of the hefty commission charged by Oyo passes on to the customer, the deal becomes very attractive. We are planning to execute it through the new app.”

T J Manoharan, District Secretary of KHRA

Delhi High Court, however, has banned the Hotel Association from going on such a strike, after OYO approached the Delhi HC against the Hotelier Welfare Association.The Delhi HC said,“It appears that the said act of the defendants is essentially pushing other hoteliers/service providers to act in breach of contract between the plaintiff and its service providers/hoteliers with whom the plaintiff has an appropriate agreement. Such an act prima facie would be illegal.”

Now, since the ban is in effect, it would be interesting to observe how the Hotel Association takes this fight against OYO Rooms.

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