AirAsia MOVE (MOVE), the travel platform under Malaysia-based Capital A Bhd, has denied allegations of fare overpricing and ticket manipulation following an order by Philippine authorities to suspend its airline ticket sales due to complaints of unlawfully inflated prices.
MOVE Chief Executive Officer Nadia Omer said in a statement that the MOVE’s pricing mechanism is automated; there is no manual intervention or manipulation of fares on the platform; all fares are sourced from third-party aggregators, not set by online travel agencies (OTAs) like MOVE.
“We thank the Civil Aeronautics Board (CAB) for giving us the opportunity to be heard at a proper venue in the observance of due process,
“The issue at hand has become a platform to proactively engage and educate stakeholders on how the supply chain works within OTAs,” she said.
She also wants to clarify that OTAs operate through third-party aggregators, aside from direct airline partners.
According to her, these third-party aggregators directly engage with various airlines to sell their seats.
She also noted that OTAs work with these third-party aggregators as a marketing arm or platform.
Therefore, OTAs do not have the ability to manually alter prices passed on from these suppliers or airline partners, she added.
“We also want to clarify that there is no overpricing and manipulation as these go against the very principle of our company – to provide affordable fares and a wide range of options to make traveling more accessible and inclusive for every consumer, on every budget,” she said.
During the CAB inquiry on Thursday, MOVE clarified its position regarding the alleged overpricing as a result of a fare discrepancy in Tacloban involving a domestic flight carrier.
MOVE has also reaffirmed its commitment to join hands with the government in the Philippines in pushing for industry-wide safeguards that ensure customer protection.
According to the statement, following the cease and desist order, MOVE immediately took action by calling out the attention of the third-party suppliers, requesting for an immediate removal of the fares in question.
During its internal investigation, the firm confirmed that no booking transaction was made. Likely, no passengers were affected by the displayed fare.
“Other than facing intense public scrutiny, MOVE did not gain any commission out of the fares in question,
“We immediately asked our third-party suppliers to provide a written explanation to ensure full clarity on the issue,” said Omer.
It is noted that in the Philippines, airline fares are regulated by the CAB, which sets price ceilings and ensures any fare adjustments are approved accordingly.
Meanwhile, the Department of Tourism (DOT) monitors accommodation rates.
However, complaints about pricing on OTAs are typically referred to the Department of Trade and Industry (DTI).
“As a company that advocates consumer protection, MOVE is ready to work closely with the government in setting up a task force and developing policies to monitor pricing across to ensure alignment not just on booking platforms, but across the third-party supply chain,” said Omer.
“We ask that the government also strike a balance between monitoring and regulating OTAs to ensure equal protection while encouraging economic activity and driving tourism,
“OTAs, like MOVE, are here to democratize travel by providing a wide range of options that suits every traveler’s budget requirements and travel aspirations,” she added.