The Federation of Resort & Restaurant Associations of India (FHRAI) has voiced robust concern over unilateral changes launched by world on-line journey platform Agoda, significantly its resolution to change fee buildings and reserving practices for Indian hotel partners.
In keeping with FHRAI, Agoda’s newly launched “Reference Sell Rate” (RSR) calculates fee on the entire room charge inclusive of GST, opposite to present agreements, which clearly stipulate fee ought to apply solely to the pre-tax room charge. The affiliation warned that this shift is inserting undue monetary strain on lodge operators already navigating a fragile post-pandemic restoration.
The federation additionally raised questions over Agoda’s compliance with India’s GST framework. FHRAI alleges that Agoda has not solely charged fee on the GST portion of the room tariff, which is prohibited, however has additionally averted making use of GST by itself fee invoices—doubtlessly pushing the tax burden onto Indian accommodations and complicating GST reconciliation.
Along with the fee dispute, FHRAI cited a number of operational grievances from its members. These embody unauthorized promotional reductions utilized with out lodge consent, fee delays that could possibly be resolved solely by paying additional fee for early launch, and a scarcity of direct communication from Agoda’s native representatives. Lodges have additionally reported situations the place Agoda modified charge plans with out prior discover and even redirected bookings to competing platforms.
FHRAI President Okay. Syama Raju harassed the significance of equitable partnerships, stating, “India’s hospitality sector is working arduous to get well and rebuild within the post-pandemic period. Unilateral choices by platforms like Agoda undermine the rules of honest collaboration and violate each authorized and contractual commitments.”
The federation has known as for Agoda to reverse the modifications, honour authentic contracts, and cling to Indian tax rules to protect transparency and belief within the hospitality ecosystem.
