Planning a trip to Ahmedabad, brace yourself as hoteliers of the city have decided to boycott the popular online booking platforms MakeMyTrip and Goibibo from December 1. But it’s just not Ahmedabad, hoteliers in Ahmedabad is receiving support from hoteliers of Mumbai, Bengaluru, and Chandigarh too. The hoteliers have claimed that indiscriminate discounts and offers by portals have robbed them of their margins and made business unviable.
The president of Hotel and Restaurant Association – Gujarat (HRA – Gujarat), Narendra Somani told the Financial Express, “The way MakeMyTrip and Goibibo are offering discounts on online booking, it is hurting our profitability. Moreover, they have increased commission from 15% to 35%. All these factors are posing business sustainability issues for us and therefore we have decided to boycott these portals from December 1.”
The hoteliers are saying that discounts and offers by portals have robbed them. The commissions of portals have increased from 10 percent initially to up to 40 percent now. They are also offering schemes to customers without consulting the hoteliers. Around 300 hotels from the city are likely to join the boycott. The HRA – Gujarat is in touch with other cities hoteliers and have received support from Chandigarh, Mumbai, and Bengaluru.