The Federation of Hotel & Restaurant Associations of India (FHRAI), has expressed deep concern over unilateral changes made by global online travel agency Agoda to its commission structure and terms of engagement with Indian hospitality partners.
In a formal letter addressed to Agoda’s leadership, FHRAI highlighted that the introduction of the “Reference Sell Rate” (RSR), a new commission calculation model that charges commission on total room rate, including taxes, despite the signed agreement stipulating that commission should be calculated only on the room rate excluding taxes. This directly violates the terms of previously agreed contracts between Agoda and hotel partners. The federation pointed out that Agoda’s move to charge commission on the gross rate inclusive of GST, instead of the base rate, has led to financial strain and operational disruptions for its member establishments.
Further, FHRAI alleged non-compliance with Indian…
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