Hyderabad: Online hotel and accommodation aggregator OYO on Monday warned “certain individuals” of potential “legal liabilities”, if they dishonour room bookings made on its portal from December 25.
“Select individuals have been threatening to cancel (franchisee or lease) agreements and not accept online bookings, which will be against the contractual arrangements, and could lead to legal liabilities on these individuals,” an OYO spokesperson said, responding to an announcement made by the office bearers of the Telangana State Hotels Association on Saturday.
“We are concerned about how this will create inconvenience for guests, and impact travel and tourism,” the official said.
The hotel room aggregator has also rejected allegations made by certain members about it collecting higher commissions from hotel bookings.
“We are aware of incorrect allegations made by certain individuals (not necessarily by franchisees and lessors associated with OYO Hotels) with vested interests. Neither are these demands aligned with the sentiment of the larger group of asset owners that have franchised or leased their property with OYO Hotels,” said an OYO spokesperson.
Denying the allegations about OYO charging about 40 per cent of commission, the official said, “OYO has not charged franchise fees over 25 per cent, and neither does it intend to unless it invests in capital expenditure or value-added services.”
Targeting those opposing OYO, the official said individuals and vested groups are using anti-competitive means to artificially jack up prices against market dynamics and charge customers exorbitant prices for budget accommodations.
The Telangana State Hotels Association members have claimed that the hotels were forced to offer rooms at huge discount on OYO portal compared to the rates that they charged per room as an independent entity.
According to sources in the OYO, “the individuals who are leading the charge against OYO are not its franchisees or leasees.”
The official said, on an average, every asset owner has seen an increase in occupancy in the range of 25 per cent to 75 per cent after they got their property associated with OYO.
