The contract between elloha and Logis was terminated last week. However, given the lack of information provided by Logis, we felt it was important to provide you with this update.
Several months ago, we told you about the many obstacles we encountered (together) in reaching an agreement with Logis. Not without difficulty, we managed (after six months of palaver) to put in place an agreement between elloha and Logis.
In the article above, you can read about the complex terms of the contract imposed by Logis, including the fact that your territories would pay financial compensation if you did not achieve the minimum reservation volumes expected by their network... Double standards: Logis requires its members to pay double commissions to the OTAs and their network and charges the DMOs to bring them (semi)direct bookings ... or the well-understood interests of the individual company. In short ...
Then we learned, after the fact, that this agreement did not exempt our partners (DMOs) from also signing an agreement with Logis regarding the opening of their flow on the destination platform of their territory. This double constraint was not included in our agreements with Logis which, precisely because of a framework agreement with elloha, had to open the flows (from their entire catalogue and not destination by destination) without the slightest difficulty. Because, as you will recall, neither elloha nor the territories collected or charged the network or the hotels in particular any fees whatsoever. In short, a 100% win-win agreement for Logis!
In spite of this, we had to deplore the fact that Logis also imposed the signing of an agreement between their network and your network head; in other words, an accumulation of palaver, paperwork and lengthy deadlines simply to have the right to publish offers from Logis in your territories on your platforms. And neither you (your network head) nor elloha receive any commission whatsoever. Doubling down on such a complex agreement for an economic relationship that is reduced to nothing shows an immoderate taste for complexity or, worse, purely delaying tactics to delay our connection to the hotels in your destinations. For us, this is now the only tangible explanation.
We weren't at the end of our surprises, because in the meantime, Logis (which had asked us not to approach hotels with elloha) announced the launch of a technological offering aimed at independent hotels- in other words, our market!
This announcement reinforced our belief that Logis had deliberately delayed signing an agreement with elloha for reasons that were now obvious.
During the elloha Days - held last September in Perpignan - we told you about the difficulties we were having in managing our relationship with Logis, given that Logis seemed to us to have imposed disproportionately high contractual conditions, given that we (you and we) were not asking them for any economic or financial consideration. Clearly, Logis negotiated for a completely different purpose than we did: to protect itself from possible competition from elloha with regard to the new service offering that Logis was planning to launch (without telling us about it, of course; in that case, we would not have signed any agreement with them on those terms).
Logis has now announced that it has terminated its agreement with elloha on the pretext that we had violated one of the clauses of our agreement (the fact that a hotel from a territory where we work with a DMO had signed an elloha subscription).
The truth of our breach is quite different: in reality, as you will see from the reproduction of our last letter to Logis, it was elloha who forced them to terminate on the grounds that:
- not only does what they are accusing us of not fall within the scope of our agreement: we had only agreed not to distribute elloha to hotels where we have a partner DMO, which is not the case with the hotel mentioned in their letter,
- but we told them (after discovering their offer to independents) that they had acted in bad faith towards us. We therefore instructed them to remove the clauses in the contract that were binding on us (in bad faith) or, quite simply, to terminate our agreement at our request,
Today - and this is the proof of its bad faith - Logis is telling you that it has terminated our agreement on the basis of a breach by elloha of a contractual condition (which does not even apply since it also concerns a hotel that is not included in a partner DMO's perimeter).
We therefore felt it was important to shed some light on this relationship, from which we are now free.
What are the consequences?
- logis hotels (from their connector) are no longer available on our platform and therefore not on yours: we will therefore recover them through other channels,
- your agreements with Logis are null and void and you can therefore offer Logis hotels your elloha access (as we will continue to do, but now also in your territories)
At this stage, we are not going to prolong our discussion on Logis. As far as these hotels are concerned, we are going to enter into another, more constructive and effective relationship, and leave this network to struggle to justify its raison d'être to its members...
