Monday, August 19, 2024 Indian consumers are increasingly facing airfare surges, with 72% reporting price hikes during searches, raising concerns over dynamic pricing tactics by airlines. A recent survey by LocalCircles reveals that a remarkable 72% of Indian consumers have encountered frequent airfare hikes during multiple searches within a single session. The survey, which gathered responses from 13,988 participants, highlights growing concerns that airlines may be using dynamic pricing strategies to adjust fares based on user behavior.
While airlines attribute these fluctuations to factors like demand and operational costs, the data suggests a potentially troubling trend. Many consumers have reported instances where airfares increased when searched multiple times on the same device, but returned to lower prices when accessed via a different device or browser. This raises significant concerns about the transparency of airline pricing practices and the possibility of unfair treatment of consumers.
The survey also revealed that 62% of respondents have experienced hidden charges during the flight booking process, which only become apparent at the payment stage. Many consumers express frustration that the final cost of a ticket is often much higher than the initial price due to these undisclosed fees. There is a strong demand among consumers for airlines to display the total airfare upfront during the search process, rather than revealing the full cost only at the payment step.
A deceptive pricing tactic known as “drip pricing” was also highlighted in the survey. This involves airlines advertising a low base fare initially but adding additional fees and charges throughout the booking process, which can significantly increase the final ticket cost compared to the advertised price. These findings have ignited a debate on the ethics of dynamic pricing and the need for greater transparency within the airline industry.
Domestic airfares, which had already seen a substantial rise of up to 40% on key routes over the past six quarters, have reportedly climbed even further since the beginning of this month, driven by increased passenger traffic and limited capacity. As India enters its festive season, including holidays like Raksha Bandhan, Ganesh Chaturthi, Onam, Durga Puja, Dussehra, Diwali, and Christmas/New Year, airfares have started to escalate. Diwali travel bookings, in particular, are experiencing a surge as travelers explore their options, according to feedback received on LocalCircles and other social media platforms.
Some consumers believe that airline websites and apps use manipulative tactics, often referred to as “dark patterns,” to mislead customers into paying higher fares or making unintended purchases during flight bookings. These tactics have come under intense scrutiny, with some authorities labeling them as cybercrimes. The survey found that 62% of consumers who use airline apps or websites have encountered a false sense of urgency, urging them to book quickly.
Airlines or online travel booking portals often create this urgency by indicating that only one or two seats are available, pressuring consumers into hasty decisions. This can be problematic if the traveler later needs to cancel or change their non-refundable tickets. Another 40% of respondents reported experiencing “Basket Sneaking,” where a service or product is added to their cart or transaction without their consent.
Booking airline tickets online can become frustrating when unwanted services, such as meals, seat selections, or travel insurance, are automatically included, leading to higher costs than anticipated. Consumer feedback also points to specific airlines employing various “dark patterns” on their platforms. For example, Air India has been reported to use tactics such as False Urgency, Basket Sneaking, Forced Action, and Drip Pricing.
Vistara’s portal has been cited for Basket Sneaking and Drip Pricing, while Akasa Air’s platform has been flagged for False Urgency, Forced Action, and Drip Pricing. SpiceJet’s platform includes tactics like Basket Sneaking, Confirm Shaming, and Drip Pricing. IndiGo, the largest airline with nearly 65% market share, has reported instances of Basket Sneaking, Confirm Shaming, Interface Interference, and Drip Pricing.
In November 2023, the Department of Consumer Affairs (DoCA) discussed integrating the National Consumer Helpline with the Air Sewa Portal to assist travelers. During a meeting with airline and online booking portal representatives, DoCA highlighted the prevalence of “dark patterns” and urged the industry to address these deceptive practices and protect consumers’ rights. The Central Consumer Protection Authority (CCPA) issued a notification in November 2023 prohibiting 13 types of dark patterns, including false urgency, basket sneaking, confirm shaming, forced action, subscription traps, In the past year, more than 10,000 complaints were filed with the Ministry of Consumer Affairs via the National Consumers Helpline, highlighting deceptive online practices by airlines.
These complaints suggest that airlines and online travel portals frequently employ manipulative tactics, known as “dark patterns,” to mislead customers.According to the CCPA, dark patterns constitute misleading advertisements, unfair trade practices, or violations of consumer rights. In the past year, more than 10,000 complaints were filed with the Ministry of Consumer Affairs via the National Consumers Helpline, highlighting deceptive online practices by airlines.
These complaints suggest that airlines and online travel portals frequently employ manipulative tactics, known as “dark patterns,” to mislead customers. Some tips to avoid falling victim to drip pricing include browsing in incognito or private mode, regularly clearing your browser’s cache and cookies, using different devices to compare prices, utilizing travel search engines, considering alternative travel dates, enrolling in airline loyalty programs, and using tools to track fare fluctuations and receive price drop notifications..
