Online travel agency (OTA) AirAsia MOVE on Thursday clarified its position regarding the alleged overpricing incident resulting from a fare discrepancy in Tacloban involving a domestic flight carrier.
During a Civil Aeronautics Board (CAB) inquiry, AirAsia MOVE chief executive officer Nadia Omer said their pricing mechanism is automated, meaning there is no manual intervention or manipulation of fares on the platform.
“We want to clarify that OTAs operate through third-party aggregators, aside from direct airline partners. These third-party aggregators directly engage with various airlines to sell their seats. 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,” Omer said.
“We also want to clarify that there is no overpricing and manipulation as these go against the very principle of our company,” she added.
AirAsia MOVE clarified that all fares are sourced from third-party aggregators, not set by itself or other OTAs.
Following the cease and desist order, AirAsia MOVE called the attention of the third-party suppliers and requested the immediate removal of the fares in question.
The company’s internal investigation confirmed that no booking transaction was made, so “likely” no passengers were affected by the displayed fare.The CAB regulates airline fares locally by setting price ceilings and ensuring any fare adjustments are approved accordingly, while the Department of Tourism (DOT) monitors accommodation rates. Meanwhile, 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,” Omer said.
“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,” she concluded.
