Oyo warns of disruption in payment cycles to its vendor Partners
The Hospitality giant Oyo has written a letter to its vendors stating about the coronavirus and the lockdown that has been impacting their business as the Oyo business is dependent upon the travel and movement of people and their stay majorly and the lockdown restrictions have an adverse effect on the business significantly. The resultant of the conditions have affected the business, the revenues generated and other business operations including operations and cash flows and owning to this, there is a possibility of disruptions in the payment processes and cycles. The letter is been written by the head of Oyo’s procurement and supply chain Ankit Agarwal says that restrictions on the social curbs are affecting the market.
There are going to be many challenges and obstructions in the hospitality and travel industry for some time in the near future and hence they continue to over-communicate at this time of severe conditions the industry is been facing with full transparency and they have been counting upon any anomalies that may arise to the business due to the coronavirus break down all around the globe. The spoke person says that they have had clear communication with the partners and the big vendors with respect to them taking a lot of precautions and being prepared for what is on the other side of the lockdown. They have also been notified that there may be disruptions in the payment cycles. They have also stated that if the unexpected anomalies occur they will take necessary action and will try to resolve them as early as possible.
The spokesperson of Oyo says that the company has been making outreach to state governments, relevant ministries and also the local authorities to offer some of their properties for pay per use quarantine facilities for the customers at a reasonable and affordable price amid the coronavirus conditions. The owners were not really happy about the deal and there they did not agree upon it and the company failed to convince them.
Dilip Datwani, an Oyo partner with a property located at Vile Parle in Mumbai, says that Oyo has not been regular about the payments in anyways as they are always disrupted and not just because of this calamity. He says that they give some or other reasons regarding the delay of the payments and his property is given on minimum guarantee basis and payment has always been an issue with the company and claims it to be a publicity stunt as they haven’t consulted hotel partners who own most of their hotels and their staff has already vacated properties.
The Oyo spokesperson says that the company is willing to offer help and support to the people who are in trouble or helping to handle the troubles caused by the coronavirus and lockdown as they are keen to support the lodging requirements of travelers and tourists who are stranded as well as the hospital staff, air and sea crew through a combination of Oyo hotels and Oyo LIFE offerings.