The Managing Directors/CEO's/Directors/Partners/General Managers
All Members of FHRAI
CC: All Members of the Executive Committee
All Regional Associations
President – FHRAI
Subject: Feedback Regarding Unfavourable Business Practices by Agoda
Dear Member,
We have been informed by several members about concerns regarding unfavourable business practices by Agoda, including commission structures, contract amendments and other operational challenges. These issues have raised significant concerns for our hospitality partners.
Below are some of the key challenges reported:
- Commission Calculation & Changes: Agoda is charging commission on the total room rate, including taxes, despite contractual agreements stating that commission should only apply to the room rate excluding taxes.
- Violation of Indian Tax Laws & GST Concerns: Agoda charges commission on GST, which is against Indian taxation laws, effectively increasing the commission burden on hotels.
- Unfair Business Practices: Agoda applies unauthorized discounts (such as coupon codes, bed network discounts, and weekend sales) without giving hotels the option to disable them.
- Unapproved Rate Plans & Booking Diversions: Rate plans are created without hotel approval, and bookings are sometimes diverted to other OTAs.
- Lack of Transparency in Accounting: Agoda’s non-transparent accounting practices are negatively impacting hotels' financial stability.
Given the significant impact of these issues on the financial and operational stability of businesses of hotels, we urge you to carefully review your agreements and any amendments or notifications received from Agoda. We strongly recommend assessing their legality and implications for your operations.
If you have encountered similar challenges with Agoda, we request you to share your feedback along with relevant records. This will help us to assess the scale of the problem and determine the necessary actions from FHRAI.
Please send your feedback to legal@fhrai.com by 5th March, 2025.
We appreciate your cooperation in addressing this matter
With best regards,
Jaison Chacko
Secretary General
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The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com, Website: www.fhrai.com