Hotel and Restaurant Association Gujarat (HRA Gujarat) has already declared that bookings from online portals such as makemytrip.com and goibibo.com will not be entertained starting December 1.
Brick-and-mortar stores in Gujarat have drawn up their dukes against e-commerce companies: In quick succession, stores selling electronic consumer goods and hotel owners announced a boycott of their online partners, saying monopolistic practices and predatory pricing has severely hurt business. They say they want to renegotiate the terms of partnership with the online portals.
Hotel and Restaurant Association Gujarat (HRA Gujarat) has already declared that bookings from online portals such as makemytrip.com and goibibo.com will not be entertained starting December 1. Similarly, stores selling computers, laptops and household gadgets have declared that they will not make fresh purchases from manufacturers or distributors until offline and online prices are made uniform.
Travel agents have questioned the economic rationale of discounts offered by online portals and say the practice is unviable and unsustainable. “I am not able to understand the business model of these online companies,” says Anuj Pathak, secretary of Travel Agents Association of Gujarat (TAAG). “The combined loss of online ticket booking companies is more than the entire business of all travel agents in Gujarat. This is unsustainable… we have no clue what this will lead to.” Similarly, garment retailers have also acknowledged that online sales have severely dented their businesses. However, both travel agents and garment retailers are yet to make up their minds about formal protests.
The Master Web
- Hotel owners and brick-and-mortar retailers want to renegotiate terms of partnership with online portals
- From December 1, bookings from online portals and websites will not be entertained by hotels
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