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Hotel owners in Delhi are upset with Oyo due to the alleged delay in payments. Many are even considering snapping ties with the hotel room aggregator, say industry observers.
Some hotels contend that they are awaiting payment from Oyo for the past four months. Says an owner who runs a hotel on the Desh Bandhu road in Paharganj area: “Earlier, our occupancy was at 80 per cent. So, we decided to tie up with Oyo. Though it is a fact that our occupancy went up after our deal with Oyo, payment continues to be an issue.”
He added that most of the bookings are done through the app and Oyo pays later as per the agreement it has signed with the owners. But he rues the fact that Oyo still owes him ₹1,50,000.
“Now, if the customer books and pays through the app, he/she won’t get the room in hotel. They need to pay us in cash at the reception to avail a room,” he said.
Imran (name changed), a manager at an Oyo property in Arya Nagar, Paharganj, said: “Not only has there been a delay in the payment, we are also being charged for the facilities not in the agreement. For instance, now we are being charged for the tablet which has been given to us by Oyo.”
Imran too says that Oyo is yet to pay him ₹1,00,000, which is pending for the past two months.
‘Most owners satisfied’
When contacted, a Oyo spokesperson denied the allegation. “OYO Hotels and Homes, as a professional organisation, has always cleared payments well on time and as per contractual agreements. We have been engaging with our asset owners on a one-to-one basis, and to address concerns, if any. As for payment-related issues, over 95 per cent of our asset owners are completely satisfied and have no issues related to payments or other aspects,” he said in an email response.
In what could be an indication of payment-related distress in the system, some hotels are also giving the guests an “option” to book a room at a discount, outside the app.
Commenting on the issue, the Oyo spokesperson said: “In case of our franchisee hotels, we have 100 per cent inventory, and thereby determine the price using a dynamic mechanism. As per our agreement with the hotel owners, the prices are determined by OYO.”
He added that in case an asset owner offers a room off the counter (outside the pricing platform), and if the same is reported or comes to Oyo’s knowledge, the company will take appropriate action.
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