Kochi hotels to protest against OYO\, calls for 48-hour shutdown over price determination rights

Kochi hotels to protest against OYO, calls for 48-hour shutdown over price determination rights

The association alleges that OYO’s policies were steadily destroying small and medium hotels and demanded the return of price determination rights to hotel owners. 

Published: 26th June 2019 07:07 AM  |   Last Updated: 27th June 2019 01:24 PM   |  A+A-

OYO

Representational image of OYO. (File Photo)

By Express News Service

KOCHI: Sixty-five hotels in the city affiliated to Kerala Hotel and Restaurants Association (KHRA) will shutdown for 48-hours from Thursday protesting against OYO, the online hospitality company. The association alleges that OYO’s policies were steadily destroying small and medium hotels and demanded the return of price determination rights to hotel owners. 

The hotel owners are organising a protest in front of OYO office at Edappally on Wednesday. The strike won’t affect those who have booked in advance, the association assured. However, these hotels would not entertain new bookings. 

“Earlier, the firm used to absorb the cost of discounts offered to customers, however, once they were established they started passing on the price differences to the hotels. There are instances where rooms priced Rs1500 are rented for as cheap as Rs 300. As OYO passes on this burden of discounts to hotel owners, small players are finding it difficult to run the hotels” said Azis Moosa, president of KHRA. KHRA alleged the platform also blocks business opportunities with similar online portals. “As all the business is through OYO platform, the hotel owners have no option but to lease out the property to Oyo very cheaply,” Rameez said.

OYO to take legal action against hoteliers

Kochi: OYO Hotels and Homes, which is facing the wrath of hotels under KHRA, is planning to take legal action against groups who disrupt their business and cause inconvenience to the customers. “Most of the boycott claims are being made by small vested interest groups with no property franchised with or leased to OYO Hotels,” said Ayush Mathur, chief supply officer, India and South Asia, OYO Hotels and Homes.