No support from govt, hotel industry fighting for survival

Sukhmeet Bhasin

Tribune News Service

Bathinda, August 13

Online portals have become a headache for hoteliers as they are arm-twisting them as per their benefits, ignoring the norms and agreements signed between them due to a large number of customers.

It seems that the hotel industry in the state is fighting for survival in the absence of any support from the state government. 

In December last year, the Punjab Hotels’ Association had announced to ban two online web portals Make My Trip and Goibibo over commission and indiscriminate discounts offered by these portals, but the issue was later resolved, but now once again such issue has again surfaced and the Bathinda Hotel Association has now taken a decision to boycott OYO rooms online portal. They have also announced that they would not entertain any booking made from OYO rooms in the city.

The Punjab Hotel Association claimes that budget hotels are the worst hit as their room fares are low. A hefty commission by booking portals not only erodes their profitability, it also makes for a loss-making proposition.

Moreover, Punjab Hotel Association president Satish Arora has demanded a complete ban on the online room booking company in the country and they have also demanded a CBI probe against all online companies and alleged that it is India’s big scam in GST taxation.

Further, he also sought the support of the state government. The association alleged that the industry was also affected due to high power tariff and imposition of cow cess on each function in their hotels.

Arora said, “The Central Government says, One Nation one tax, but the state government again has imposed VAT on bar.”

He said the Congress government during the 2017 Assembly election had promised in its manifesto that it would bring back power tariff to Rs 5 per unit for industry, forget giving any relief, it further stabbed the industry by hiking power tariff to Rs 10 per unit.

The association said it was a major setback to see that the state government had not taken any step to promote tourism in the state, which would give a fillip to the hotel industry.

Moreover, hoteliers said while they were burdened with a number of formalities, rules, regulations and taxes, the government was giving a free hand to the dhabas to flourish. “Dhaba culture is killing the hotel industry. AC fitted dhabas double up as low cost motels and the government has turned a blind eye to it,” they added

A majority of hotel bookings are done through online web portals as they are offering huge discounts.

Issues

• In December last year, the Punjab Hotels' Association had announced to ban two online web portals, MakeMyTrip and Goibibo, over "commission and indiscriminate discounts" offered by these portals, but the issue was later resolved. 
• But now once again such issue has again surfaced and the Bathinda Hotels' Association has now taken a decision to boycott OYO rooms online portal. They have also announced that they would not entertain any booking made from OYO rooms in the city.