Family denied hotel room despite confirmed booking, Goibibo ordered to pay Rs 24,000

A district consumer forum in Kerala has directed online travel booking platform Goibibo to refund Rs 9,372, after a family that travelled all the way from the southern state to Pune was denied a hotel room and had to find another hotel to stay despite a confirmed booking.

Dealing with a plea of a man who was visiting Pune with family to attend his son’s chess tournament, a bench of presiding member Krishnan K and member Beena K G of the Kasaragod District Consumer Disputes Redressal Commission also ordered the company to pay Rs 10,000 compensation and Rs 5,000 litigation costs, making the total payout Rs 24,372.

“The complainant travelled from his native place in Kerala, reached Pune in Maharashtra, was forced to put up in another room in another hotel, thus suffered financial loss, mental agony and amounts deficiency in service and unfair trade practice from the opposite party,” the commission said on June 5.

The order added that the complainant suffered mental agony, financial loss, humiliation, inconvenience, and additional expenditure, and is entitled to a refund with interest, with compensation for deficiency in service and unfair trade practice, along with the cost of litigation.

The complainant booked a room in Hotel ‘Shanaya Inn’ at Pune from May 18, 2024, to May 24, 2024, through Goibibo by paying Rs 9,372, where he had to attend his son’s chess tournament. He subsequently received a message confirming the booking, besides a booking voucher. On the booked date, he reached the hotel but no room was made available, on the claim that they had not received the payment.

According to the complainant, the family had reached Pune after a long train journey from Kerala and did not even get time for refreshment. Seeking a refund and compensation for mental agony, the complainant filed a complaint with the consumer commission.

Hotels reserve right of admission: Goibibo

The opposite party Goibibo filed a written submission stating that the company merged with Make My Trip India Pvt Ltd. It was submitted that the booking was confirmed, processed correctly, and the hotel was notified of the booking and payment in advance, but the opposite party had no direct control over the hotel’s operations process

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They argued that the hotel staff denied the complainant accommodation by citing non-booking payment, so an issue arising from hotel booking is beyond the control of the opposite party. It was submitted that the opposite party merely provides a platform for their user to select and book a particular hotel, and hotels reserve the right of admission.

Intermediary can’t escape liability: Order

The intermediary cannot automatically escape liability merely by saying that they transferred the money to the hotel after deducting their commission.

The booking agent received the consideration, including commission, which indicates their responsibility to also provide the service promised.

There was joint and several liability on the primary liability on the hotel, with a contributory liability on the booking platform.

A confirmed reservation creates a legitimate expectation that accommodation will be available.

The intermediary’s defence that the amount was remitted to the hotel after deducting commission will not absolve it from liability.

Final order

Allowing the plea in part, the commission directed Goibibo to refund Rs 9,372 towards the booking amount with 9 per cent interest from the date of complaint till payment, with Rs 10,000 as compensation for deficiency in service, and along with Rs 5,000 as cost of litigation to the complainant. The amount is to be paid within 30 days of the receipt of the order.

Significance

This judgment reinforces that online travel booking platforms cannot evade liability by claiming to be mere intermediaries after issuing confirmed bookings and accepting payment. It strengthens consumer rights by recognising joint responsibility for service failures, legitimate expectations from confirmed reservations, and compensation for financial loss, inconvenience and mental agony caused by denied hotel check-ins.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Kerala helpline: 1800-425-1550) or dial the National Consumer Helpline at 1915 for assistance.