1.    Parties

This agreement is entered into between IHN (Independent Hotel Network Pvt Ltd) a private limited company with its registered office at 1A, Building A2, Ganga Satellite, Wanawadi Pune– 411040 and “Company”, the details of which are given below:

IHN and the Company are collectively referred to as the Parties.

2.    Services

IHN will setup and manage a loyalty network forTBA hotels, Restaurants etc with an aim to encourage.

1.       Increased Guest loyalty. (Money is continued to be spent within the network)

2.       Available use of guest data from each location for business promotions.

3.       Increased awareness with targeted guest user base of all happenings / options on offer by TBA.

4.       Encourage cross selling of other state government hotels and restaurants, ensuring mutual benefit.

The main objective would be that each and every guest patronising a TBA hotel, restaurant etc be given a reason in the form of cash back money to keep returning to any of the other network outlets.

HOW WILL THIS WORK

IHN’s designed platform will form a triangle of users that networks

1.       Each hotel / Restaurant / etc with

2.       User guest and

3.       The IHN platform

With a spend at any one location, the guest will be rewarded with loyalty points (travel cash) that can be redeemed at any of the other hotels/ restaurants / hubs across the platform.

The platform will work such that depending on the amount spend by a guest, loyalty points will be earned for his/her next use that can be redeemed at any other hub across the state.

·         The platform will manage the money collection between hub’s and make the payments on the guest’s behalf.

·         Completely secure, guest data will be available for use by TBA for their marketing and sales purpose.

·         A 3-step checking hierarchy has been setup at each hub, with only a designated senior manager having the approval rights, thus assuring data and financial security.

THE BROAD FRAMEWORK

1.       A network of all hotels, restaurants and way side amenities would be listed on an app and be available for reference by any guests.

2.       The app will give all necessary information such as

·         City

·         Geographic location within city (as applicable).

·         Type of outlet

·         Star Category / (Indicative Price range)

·         Spread across Multiple Cities

·         Giving access to public reviews and ratings of the hotels

3.       There would be no platform LOGO / brand standards / marketing process or policy that the individual participating hotels / hub will have to adhere to. The hotels / hubs will continue to conduct their business in their own unique manner.

4.       The app would also be equipped with a booking engine and would endeavour that bookings made on the app be directed to the individual hotel’s own webpage. No commission’s or referral fees would be charged by the application. Payment gateway charges if applicable, would be billed to the hotel.

5.       A guest at departure from the hotel / hub would be enrolled onto the membership program by the cashier and a laid down verification process would be followed by the hotel to enable the cashback transfer.

6.       A web login would be created and given for the Front Office staff, the Finance team and also the Head Finance or General Manager at each hotel / hub by IHN to enable this process.

7.       No integration would be required with your existing PMS (Property Management System) with IHN. Reports would be available on any data required per hotel.

8.       Only money spent at a network hotel would be applicable to an agreed cashback that can be utilised on any of the other network hotels. Each hotel / unit would be free to decide the amount on which cashback would be given to a guest and similarly also decide the percentage amount.

9.       This cashback earned would be dependent on the amount spent on room charges or Food and beverage by the guest and not be a fixed charge. The cashback would be applicable on all spends at the hotel and all rate slabs.

10.   There would be no blackout rates or days of the year where IHN cashback may be refused by participating hotels / hubs.

11.   A cashback ranging from 4% and upwards of the amount spent (without tax) at the hotel / hub would be earned by the guest.

12.   The collected cashback would be managed by the platform (IHN) and be paid to a network hotel / hub when the guest is redeeming his points against his charges.

13.   A platform fee of 5% on the redeemed amount would be charged by IHN when making the payment to the hotel.(i.e 5% platform fee of 4% cashback = Only 0.20 % overall fee of the total transaction amount)

14.   The initial commercial rates, terms and conditions etc proposed would be applicable for a 24 months period from the date of signing the contract.

15.   It would be the hotel responsibility to ensure maximum guests are enrolled onto the loyalty platform. The IHN platform will provide dashboard data on guest enrolment per hotel to help increase the conversion ratio.

16.   Cashback accumulated by the guest would be available for redemption for a period of 30 months (900 days).

3.    Pricing and Charges

Various pricing plans are available online on www.theihngroup.com that each unit may individually subscribe to.

These per unit chargesrange from

3.1.    Monthly subscription fee will be only Rs. 5000 + 18% GST per property (hub) per month, payable by the 30^th of the previous month by credit card only.

3.2.    A ten-month (10) subscription at Rs 45000 + 18% GST, payable at one go. All online payment modes accepted.

3.3.    A fifteen-month (15) subscription at Rs 60000 + 18% GST, payable at one go. All online payment modes accepted.

3.4.    A twenty-four-month (24) subscription at Rs 84000 + 18% GST, payable at one go. All online payment modes accepted.

3.5.    On cashback redemption, the IHN platform would be charging a flat fee of 5% on cashback amount. (Effectively only 0.2% = 5% * 4%)

Additionally,

3.6.    An incentive would be given to each unit for maintaining a minimum transaction volume per day, calculated at the end of each month. Ensuring 25 transactions done per day, i.e. 750 transactions (25 transactions X 30 days)done per month will earn the unit a complimentary month’s access to the platform.

3.7.    Recommending other hotels / restaurants to join the network, similarly will earn a complimentary month’s subscription for an existing hotel. A new registering unit would have to mention the mobile number of any Level 1 employee of the recommending unit to get the complimentary months subscription. 

3.8.    All payment would have to be made favouring

Independent Hotel Network Private Limited

HDFC Bank Account Num (Fatima Nagar, Pune 411013):#502 000 3445 9749

NEFT IFSC Code: HDFC0000837

4.    ­Initial Set up

Post payment receipt for a minimal 10 unit’s by IHN(Individual hotel or hotel group), IHN would help setup the user hierarchy and role permissions for these hotels and also conduct training classes for the (individual hotel or hotel group) corporate team without any additional charges.

The 15-month per unit subscription model is recommended for the initial phase by IHN

5.    ­Long Term Success

The long term success for (individual hotel or hotel group) would greatly dependent on how well each participating hotel / restaurant / unit recruit’s guests onto MP Tourism’s loyalty platform.

More recruitment per day, per unit would in turn lead to a larger database and a higher return ratio across the platform.

6.    ­Intellectual property

The Parties acknowledge that any content in the form of written material, photographs, software, animations, pictures are the sole property of the originator, and grant each other express permission to use such content for the duration of this agreement.

7.    Limitation of liability

7.1.    No consequential damages: In no event will either Party be liable to the other or any other person or entity for lost profits or any special, indirect, exemplary, punitive or consequential damages under any circumstances, even if such Party has been advised or made aware of the possibility of any losses or damages.

7.2.    Exceptions: The above limitation of liability shall not apply to breaches of section 9.1 (Confidentiality), section 9.2 (Indemnity) and any amounts paid or payable as part of indemnification obligations, infringement of intellectual property, or a party’s gross negligence, intentional misconduct or wilful breach or abandonment of this agreement. Either Parties’ liability for damages in no event shall exceed the Charges paid pursuant to this agreement.

8.    Term and termination

8.1.    Term: This agreement will be valid for a period of 24 months from the date of signing.

8.2.    Termination: The agreement may be terminated at any time by the party by giving 6 months written notice and or paying off dues for the same forthcoming period of 6 months. The obligations under 9.1 (Confidentiality), section 9.2 (Indemnity) and 7 (limitation of liability) will survive any such termination.

9.    Miscellaneous

9.1.    Confidentiality and Non-disclosure: All non-public information, data and documents provided by a disclosing Party to the receiving Party will be kept confidential by the receiving Party and its associates and employees.

9.2.    Indemnity: Each party shall defend, indemnify and hold harmless each other from any and all damages, expenses or liability resulting from or arising out of any negligence or misconduct on its part (“Defaulting Party”), or from any breach or default of this agreement which is caused or occasioned by the acts of the Defaulting Party. The Defaulting Party shall ensure that its employees and affiliates take all actions necessary to comply with the terms and conditions set forth in this letter agreement.

9.3.    No waiver, amendment or other modification of this letter agreement shall be effective unless in writing and signed by each party hereto to be bound thereby.

9.4.    This letter agreement shall be governed by, and construed in accordance with, the laws of India and subject to the jurisdiction of the Courts in Pune.

Accepted and agreed upon,

On behalf of Company

Name of Director: ………………………...........................................................

………………………...........................................................................................

………………………...........................................................................................

Date :

Place :

10.           Basic onboarding information