Hotel Owners Launch Their Own App To Defeat Oyo Rooms; Refuse Discounts To Oyo Users

Hotels launch their own app against Oyo Rooms
Hotels launch their own app against Oyo Rooms

Oyo Rooms has been facing the wrath of the Hotel Association in Kerala, and that is not the be all and end all of their troubles.

Made in India hotel network Oyo Rooms now has another thing coming at it – a fierce competition in the form of an app by the Kerala Hotel Association, which will function similar to that of OYO’s. 

Interestingly, Delhi High Court has banned any such protests against Oyo Rooms by the hotel associations. 

Read on to know all the details about this new initiative that will take on OYO by its horns!

Kochi Hotels To Launch App To Compete Against OYO

The Hotel Association has given a different path to its protest against OYO, and decided to launch a parallel app that will compete against OYO. 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. Apparently, OYO denied discussing the matters and settling them in a peaceful manner, which is what boosted the strike. 

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.”

Base Rate From June 28th; No Discounts For Oyo Users

Hotels participating in this revolt against Oyo Rooms have also announced that starting June 28th, they will not accept bookings at the rate which Oyo tells them.

But now, they will charge the hotel rooms as per their own rates.

This will be a big problem for Oyo, as their business model is sustained based on deep discounts, and if that stops, the customers will try out different approach for booking hotels.

Azeez Moosa, who is the President of KHRA has confirmed this.

Kochi Hotels Protest and Strike Against OYO: Delhi High Court Bans Strike

The Kerala Hotel and Restaurant Association, starting on Wednesday went on a strike against the popular online hotel network, OYO. Around 67 hotels have been a part of the strike and they are blaming the disastrous money management of OYO. 

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 Hotel Associations in Kochi and other locations take this fight against Oyo Rooms.

We will keep you updated, as we receive more news.

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