AirAsia MOVE (MOVE) today reaffirmed its dedication to partnering with the Philippine government in championing industry-wide safeguards for robust customer protection. The commitment was underscored during a Civil Aeronautics Board (CAB) inquiry on Thursday, where MOVE clarified its stance regarding an alleged overpricing incident involving a fare discrepancy in Tacloban linked to a domestic flight carrier.
AirAsia MOVE CEO Nadia Omer appeared before CAB officials to demystify the supply chain process within the Online Travel Agency (OTA) industry. She emphasized that MOVE’s pricing mechanism is fully automated, asserting that there is no manual intervention or manipulation of fares on its platform. Omer further clarified that all fares displayed on MOVE are sourced directly from third-party aggregators, not set by OTAs like MOVE.
“We thank the CAB for giving us the opportunity to be heard at a proper venue in the observance of due process,” stated Nadia Omer. “The issue at hand has become a platform to proactively engage and educate stakeholders on how the supply chain works within OTAs.”
Omer elaborated, “OTAs operate through third-party aggregators, in addition to 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.” She added, “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.”
Swift Action Taken, No Passengers Affected by Discrepancy
Following the issuance of a cease and desist order, MOVE acted swiftly by contacting the third-party suppliers involved and requesting the immediate removal of the fares in question. An internal investigation by MOVE confirmed that no booking transactions were made for the specific fares, indicating that no passengers were affected by the displayed discrepancy.
“Other than facing intense public scrutiny, MOVE did not gain any commission out of the fares in question,” Omer noted. “We immediately asked our third-party suppliers to provide a written explanation to ensure full clarity on the issue.”
Advocating for Collaborative Consumer Protection Policies
Recognizing the regulatory landscape where airline fares are overseen by the CAB and accommodation rates by the Department of Tourism (DOT), with OTA pricing complaints typically referred to the Department of Trade and Industry (DTI), MOVE expressed its readiness for deeper collaboration.
“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 affirmed.
She concluded by advocating for a balanced approach: “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.”
