A staggering 72 per cent of Indians reported experiencing frequent airfare increases during multiple searches within a single session, according to a recent survey by LocalCircles.
The survey, which polled 13,988 individuals, found that a significant number of consumers believe airlines are employing dynamic pricing strategies to manipulate fares based on user behavior. While airlines justify fare fluctuations due to demand and operational costs, the data suggests a more concerning pattern.
Consumers have reported instances where airfares increased when searched multiple times on the same device, but reverted to lower prices when accessed through a different device or browser. This raises questions about the transparency of airline pricing and whether consumers are being subjected to unfair practices.
At least 62% consumers surveyed also said they have frequently experienced hidden charges associated with flight ticket booking that are not presented upfront but only when making the payment. Most consumers who book flight tickets themselves would have noticed that the price at which they started booking and what they finally pay may be much more due to many hidden charges not shown upfront. Many consumers want airlines to display the total airfare to be charged upfront when they are searching for airfares and flights instead of at the last step of payment.
Drip pricing is a deceptive pricing strategy where airlines initially advertise a low base fare but gradually reveal additional fees and charges throughout the booking process. This tactic can significantly inflate the final cost of the ticket compared to the advertised price.
The survey findings have sparked a debate on the ethics of dynamic pricing and the need for greater transparency in the airline industry.
Domestic airfares, which had witnessed a significant surge of up to 40% on key routes over the past six quarters, are reported to have risen further since early this month driven by higher passenger traffic and capacity constraints. As India’s festive season begins with Raksha Bandhan, followed by Ganesh Chaturthi, Onam, Durga Puja, Dussehra, Diwali and Chirstmas/New Year, fares of most airlines have started scaling up. In fact, bookings for Diwali travel are now witnessing a sudden surge as fliers are looking at options for travel, according to feedback received on LocalCircles and other social media platforms.
According to many consumers, airline websites and apps tend to employ manipulative tactics at times, also known as ‘dark patterns’, to mislead customers into paying a higher fare or paying for add on and unintended purchases during flight bookings. Such tactics have drawn sharp criticism, with some authorities even labelling them as cybercrimes.
The survey also found that 62% consumers who use airline apps/websites say they have frequently experienced being presented with a false sense of urgency to get them to book faster.
Creating a false sense of urgency by notifying only one or two seats are available, the airline or online travel booking portals often push consumers into making hasty decisions which may backfire if they are confirmed seats which cannot be refunded in case the travel plans get aborted.
Another 40% consumers surveyed who use airline apps/websites said they have frequently experienced Basket Sneaking where a service was added to their cart/transaction without their consent. Booking airline tickets online often becomes a hassle when there are unwanted riders/ offers that fox the unwary resulting in the consumer having to pay more than expected. Commonly cited examples by consumers were a meal, a seat selection, a preferred/fast lane at airport or an add on insurance.
Consumer feedback shows that in the case of Air India, four dark patterns have been experienced on its platform/app which are False Urgency, Basket Sneaking, Forced Action and Drip Pricing. There are two dark patterns on Vistara portal/app i.e. Basket Sneaking and Drip Pricing. Consumer feedback on Akasa Air portal cites dark patterns like False Urgency, Forced Action and Drip Pricing being experienced.
Dark patterns on Spicejet platform include Basket Sneaking, Confirm Shaming and Drip Pricing. The maximum dark patterns have been reported on the IndiGo portal/app and include Basket Sneaking, Confirm Shaming, Interface Interference and Drip Pricing.
It must also be noted that Indigo is the largest airline with nearly 65% market share and the probability of consumers using the airline and experiencing a dark pattern once or more is therefore highest.
In November 2023, the Department of Consumer Affairs (DoCA) discussed the possibility of integrating the National Consumer Helpline with the Air Sewa Portal, a traveler support portal, to help consumers. During a meeting with representatives of airlines and online booking portals DoCA highlighted commonly prevalent “dark patterns” and told them to find ways to counter these deceptive online practices and protect consumers’ interests in the travel sector.
The Central Consumer Protection Authority (CCPA) had notified prohibition of 13 types of dark patterns in November 2023. These include false urgency, basket sneaking, confirm shaming, forced action, subscription trap, interface interference, bait and switch, drip pricing, disguised advertisement, nagging, trick questions, SaaS (software as a service) billing and rogue malwares. Per the CCPA notification, dark patterns amount to misleading advertisement or unfair trade practice or violation of consumer rights.
Last year over 10,000 complaints related to deceptive online practices by airlines were lodged with the Ministry of Consumer Affairs via the National Consumers Helpline. These complaints suggest that airlines and online travel portals employ several manipulative tactics or ‘dark patterns’, to mislead customers.
Common complaints cited by airline consumers on LocalCircles in regard to airlines have been around dark patterns like Forced Action, Drip Pricing, False Urgency and Basket Sneaking.
Tips to avoid drip pricing:
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Browsing in incognito or private mode can prevent websites from tracking your search history and potentially inflating prices. -
Regularly clearing your browser’s cache and cookies can help prevent websites from storing your search data. -
Use different devices (computers, smartphones, tablets) to compare prices. -
Utilize travel search engines to compare fares across multiple airlines. -
Consider alternative travel dates to find potential price differences. -
Enrolling in airline loyalty programs can sometimes offer discounts or early access to deals. -
A Use tools to track fare fluctuations and receive notifications when prices drop.
Additional Tip: Be aware of the new DGCA rules that mandate airlines to unbundle services like baggage fees, seat selection, and meals. This could potentially lead to more transparent pricing and potentially lower base fares.
First Published: Aug 19 2024 | 11:04 AM IST
