AirAsia MOVE, the only foreign-registered OTA in the Philippines, has reaffirmed its commitment to providing reliable, accessible, and affordable travel. MOVE fully complies with local regulations, pays Philippine taxes, and employs Filipinos. During a Civil Aeronautics Board (CAB) inquiry, MOVE clarified its position on alleged overpricing due to a fare discrepancy in Tacloban involving a domestic flight carrier.

AirAsia MOVE CEO Nadia Omer appeared before CAB officials to clarify the supply chain process in the Online Travel Agency (OTA) industry and emphasized the following key points:

  • 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 and are not set by OTAs like MOVE.

“We thank the CAB for allowing us to be heard at a proper venue in the observance of due process. The issue has become a platform to proactively engage and educate stakeholders on how the supply chain works within OTAs.

“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 cannot manually alter prices passed on from these suppliers or airline partners.”

“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,” Omer said.

Following the cease and desist order, MOVE immediately called the third-party suppliers’ attention and requested the immediate removal of the fares.

During its internal investigation, MOVE confirmed that no booking transaction was made. Likely, no passengers were affected by the displayed fare.

Omer adds, “Other than facing intense public scrutiny, MOVE did not gain any commission from the fares. We immediately asked our third-party suppliers to provide a written explanation to ensure full clarity on the issue.”

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 to set up a task force and develop policies to monitor pricing to ensure alignment on booking platforms and across the third-party supply chain.

Omer adds, “We ask that the government also balance 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 suit every traveler’s budget requirements and aspirations.”