Failed hotel booking: Consumer forum orders MakeMyTrip to pay ₹1.45 lakh fine, ₹4.34 lakh additional expense incurred by man

A consumer disputes redressal commission in Bengaluru recently imposed a fine of ₹1.45 lakh on online travel company MakeMyTrip for a failed hotel booking that left a traveler stranded in London [Mayur Bharath vs MakeMyTrip (India) Pvt Ltd].A coram of President M Shobha and members K Anita Shivakumar and Suma Anil Kumar also ordered the platform to pay the complainant-man ₹4.34 lakh which was the additional expense the man had to incur in securing an alternative accommodation. The Commission acknowledged the unfair experience suffered by the complainant and highlighted that he had to secure alternative accommodation at an exorbitant price due to the Wimbledon tennis tournament.."It is unfair that the complainant has faced difficulty in occupying the accommodation. With no other option when the OP (MakeMytrip) has not made any proper arrangement to get in to an accommodation, complainant made his own arrangement at Hotel Café Royal by paying ₹6,58,740 which is at Ex.P.3 which is exorbitant amount since the Wimbledon Tennis tournament held in the month of last week of June every year at London," the Commission said in its order dated January 1..The Commission was hearing a complaint by one Mayur Bharath. He informed the Commission that despite booking the hotel four months in advance and paying the full amount, MakeMyTrip failed to secure reservation leaving him stranded and incurring additional expenses.He further stated that he had received the refund for the booking amount, but was not compensated for the exorbitant fees he paid for making alternative arrangements. On that account, he sought a direction to MakeMyTrip to bear the additional expenses he incurred towards booking another hotel. He also sought compensation of ₹10,000 towards hardship, mental agony and stress and ₹1,00,000 as litigation expenses..On the other hand, MakeMyTrip opposed the complaint on the ground that they could not be held liable for the hotel not honouring the reservation.It further stated that it had refunded the entire booking amount and also offered a compensation of ₹50,000, which the complainant denied. Accordingly, MakeMyTrip sought dismissal of the complaint with costs..The commission found the platform's argument of acting as a facilitator insufficient The Court emphasised that consumers place their trust on such platforms when travelling. "It is not accepted that the contention taken by OP about liability for the deficiency of service is unfair. Since, the complainant has trusted the OP app and booked the hotel believing OP is rendering good services to customers. When there is no privity of contract between the hotel and the customer, the lapses caused must be answerable by OP itself," the Commission said.It noted that although the complainant was refunded the booking amount, the alternative arrangement cost ₹4,34,420 more than the original booking. It also noted that MakeMyTrip offered only ₹37,386 as compensation.Accordingly, the Commission deemed MakeMyTrip responsible for the deficiency in service, especially given the lack of alternative accommodation arrangements and the subsequent financial burden on the consumer."Without any genuine cause, hotel accommodation has not provided to complainant though it was confirmed 4 months prior but OP did not take any interest to provide alternative arrangement also when he was in difficulty. The above said all situations, deficiency caused and mental agony, stress and financial loss to complainant which should be compensated by OP’s," it said..Therefore, the Commission directed MakeMyTrip to pay back the difference of ₹4,34,420. It further directed it to pay to the consumer ₹1,00,000 as compensation and ₹20,000 as litigation costs.Further, it directed MakeMyTrip to pay ₹25,000 towards punitive damages under section 39(1)(g) of Consumer Protection Act, to Consumer Welfare Fund..[Read Order]