AirAsia MOVE (MOVE) reaffirmed its commitment to join hands with the Philippine government to push for industry-wide safeguards ensuring customer protection.
MOVE clarified its position during the Civil Aeronautics Board (CAB) inquiry held yesterday, 5th June, following allegations of overpricing on the app.
Chief executive Nadia Omer herself appeared before CAB officials to clarify the supply chain process in the Online Travel Agency (OTA) industry, putting an emphasis on several key points.
These were:
- MOVE’s pricing mechanism is automated;
- There is no manual intervention or manipulation of fares on the platform; and
- All fares are sourced from third-party aggregators, not set by OTAs like MOVE.
Omer said: “We thank the 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.”
Necessary clarification
In her statement, Omer clarified 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, and thus do not have the ability to manually alter prices passed on from these suppliers or airline partners.
The MOVE CEO went on to say: “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.”
Taking action
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, MOVE confirmed that no booking transaction was made; and it is likely that no passengers were affected by the displayed fare.
Omer added: “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.”'
As a company that advocates consumer protection, MOVE assured the public that it 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 Philippine government also strikes a balance between monitoring and regulating OTAs to ensure equal protection while encouraging economic activity and driving tourism. OTAs, like MOVE, are here to democratise travel by providing a wide range of options that suits every traveler’s budget requirements and travel aspirations.”
