AirAsia MOVE (MOVE) has reaffirmed its commitment to collaborate with the Philippine government to push for industry-wide protections aimed at ensuring customer safety. This statement comes following recent accusations of overpricing on their app.
During the Civil Aeronautics Board (CAB) inquiry, which was held on June 5, MOVE clarified its position regarding the pricing mechanisms utilized within the online travel agency (OTA) sector. Notably, Chief Executive Nadia Omer appeared before CAB officials and emphasized the following points:
- MOVE employs an automated pricing mechanism.
- There is no manual intervention or manipulation of fares on the platform.
- All pricing is sourced from third-party aggregators, and not directly set by the OTAs.
Omer stated: “We thank the CAB for allowing us to present our case in a suitable environment while observing due process. This issue provides an opportunity to educate stakeholders about how the OTA supply chain functions.”
In her remarks, Omer expressed that OTAs primarily operate through third-party aggregators, which liaise directly with various airlines to facilitate ticket sales. This structure means OTAs cannot manually adjust the prices received from these aggregators. She further affirmed, “We want to clarify that overpricing and manipulation are against our company’s ethos of providing affordable fares while offering a broad spectrum of options for travelers of all budgets.”
In response to a cease and desist order, MOVE has taken measures to address the concerns raised. They promptly reached out to their third-party providers, requesting an immediate review of the fares in question. The internal investigation confirmed that no bookings were made at the contentious rates, indicating likely minimal impact on customers.
In conclusion, MOVE has pledged to work closely with regulatory bodies to set up a task force aimed at developing policies that keep pricing in check, promoting fairness across not just booking platforms but throughout the entire supply chain for consumers.
Omer added: “It’s critical that the Philippine government maintains a balance between regulatory oversight and facilitating economic growth and tourism. OTAs like MOVE exist to democratize travel, providing travelers with diverse options tailored to varying budget requirements and travel desires.”
