Haridwar Consumer Commission Holds OYO Liable For Deficiency In Service Over Denied Hotel Booking

Failure to honour a confirmed online hotel booking has cost OYO Rooms a significant penalty from the District Consumer Disputes Redressal Commission, Haridwar.

In a recent decision, the Commission, comprising President Gagan Kumar Gupta and Members Dr. Amresh Rawat and Ranjana Goyal, ruled that OYO’s failure to ensure the original booking and promptly reimburse the extra expenses incurred by the consumer amounted to a clear deficiency in service. The Commission ordered the travel aggregator to pay a total of ₹25,029, including compensation for mental agony and litigation costs.

Background of the Dispute

The complainant, Rajtrehan, booked a room at Days Inn Studio House, Bhuj, Gujarat, through OYO's platform for ₹1,528 on 24 September 2019. However, upon arrival, the hotel refused accommodation, citing a payment dispute with OYO. The company then arranged an alternative booking at a different hotel for ₹1,879, which the complainant alleged was more expensive and offered fewer facilities. He also incurred ₹150 in auto-rickshaw expenses to reach the alternative hotel. After multiple unsuccessful attempts to get a refund, including a grievance filed with the National Consumer Helpline, Rajtrehan approached the consumer commission.

Arguments Presented Before the Commission

OYO contested the complaint, arguing that it operates merely as an online platform facilitating bookings and does not directly provide accommodation. It claimed that after the first booking failed, the complainant accepted the alternative booking, and OYO had already offered refunds and discount vouchers, which the complainant declined. The company maintained that it had made every effort to resolve the matter before the complaint was filed.

The complainant, appearing in person, argued that OYO’s delayed offer came only after he had already suffered financial loss and mental distress. He sought a full refund of the additional ₹351 spent on the alternative booking, along with compensation for the inconvenience.

Legal Analysis and Key Findings

The Commission closely examined the documentary evidence, including the booking confirmations, emails from OYO acknowledging the glitch, and the correspondence between the parties. It noted that OYO's own communications reflected an acknowledgment of the problem. The Commission observed:

“Through the submissions of Opposite Party No. 1, the complaint appears to be acknowledged. OYO’s failure to promptly reimburse the additional expenditure incurred by the complainant due to the failed booking amounts to deficiency in service.”

The Commission rejected OYO’s contention that it was merely an intermediary, holding that it bore responsibility for ensuring that the bookings made through its platform were honoured. The fact that OYO offered a refund only after the consumer complaint was instituted did not absolve it of its liability. The Commission emphasised that the delay itself constituted a failure of service.

The Final Verdict

The Commission allowed the complaint against OYO (Opposite Party No. 1) and dismissed the complaint against the hotel (Days Inn Studio House), as it found no direct liability of the hotel in the dispute. OYO was directed to pay the following amounts within 45 days:

  • ₹1,879 towards the cost of the alternative hotel booking.
  • ₹150 towards auto-rickshaw expenses.
  • ₹15,000 as compensation for mental agony and physical hardship.
  • ₹8,000 towards litigation costs.

In case of default, the entire amount shall carry simple interest at the rate of 10% per annum from the date of filing of the complaint (6 January 2022) until realisation. The order was pronounced on 11 August 2026.

Key Observations from the Judgment

The Commission underscored that an online platform cannot escape liability by claiming it merely facilitates bookings. It noted that the obligation to ensure that confirmed reservations are honoured rests squarely on the service provider. The ruling serves as a reminder that aggregators must have robust mechanisms to handle booking failures promptly and compensate affected consumers without unnecessary delays.