A staggering 72 percent of Indians reported experiencing frequent increases in airfares during multiple searches within a single session, according to a recent survey by LocalCircles.
The survey, which included 13,988 respondents, 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 operating costs, the data suggests a more worrying pattern.
Consumers have reported instances where airline fares increased when information was searched for multiple times on the same device, but returned to lower prices when accessed through a different device or browser. This raises questions about airline pricing transparency and whether consumers are being subjected to unfair practices.
At least 62% of consumers surveyed also stated that they have frequently experienced hidden fees associated with booking airline tickets that are not displayed in advance, but only upon checkout. Most consumers who book airline tickets themselves will have noticed that the price at which they started booking and what they end up paying can be much higher due to many hidden fees that are not displayed in advance. Many consumers want airlines to display the total airline ticket price they will be charged in advance when they search for airfares and flights rather than at the last step of checkout.
Drip pricing is a deceptive pricing strategy in which airlines initially advertise a low base fare, but gradually reveal additional fees and charges during the booking process. This tactic can significantly inflate the final cost of the ticket compared to the advertised price.
The survey results have sparked a debate about the ethics of dynamic pricing and the need for greater transparency in the airline industry.
Domestic airfares, which had seen a significant increase of up to 40% on key routes over the past six quarters, have reportedly risen further since the beginning of 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 Christmas/New Year, fares on most airlines have started increasing. In fact, bookings for Diwali travel are now seeing a sudden surge as travellers look for options to travel, as per feedback received on LocalCircles and other social media platforms.
According to many consumers, airline websites and apps often employ manipulative tactics, also known as “dark patterns,” to trick customers into paying a higher fare or paying for additional or unwanted purchases during flight bookings. These tactics have drawn harsh criticism, with some authorities even calling them cybercrimes.
The survey also found that 62% of consumers who use airline apps and websites say they have frequently been presented with a false sense of urgency to entice them to book faster.
By creating a false sense of urgency by notifying that only one or two seats are available, the airline or online travel booking portals often push consumers into making hasty decisions that can backfire if seats are confirmed that cannot be refunded in the event that travel plans are cancelled.
Another 40% of consumers surveyed who use airline apps or websites said they have frequently experienced the phenomenon of stealth shopping, where a service is added to their cart or transaction without their consent. Booking airline tickets online often becomes a hassle when unwanted offers or add-ons trick the unwary into making the consumer pay more than expected. Examples most often cited by consumers were a meal, seat selection, a preferred or fast-track lane at the airport, or additional insurance.
Consumer feedback shows that in case of Air India, four dark patterns have been experienced on its platform/app, namely false urgency, black-selling of products, forced action and drip pricing. There are two dark patterns on Vistara’s portal/app, namely, black-selling of products and drip pricing. Consumer feedback on Akasa Air’s portal cites dark patterns like false urgency, forced action and drip pricing.
Dark patterns on the Spicejet platform include Basket Sneaking, Confirm Shaming and Drip Pricing. The most numerous dark patterns reported on the IndiGo portal/app include Basket Sneaking, Confirm Shaming, Interface Interference and Drip Pricing.
It should also be noted that Indigo is the largest airline, with almost 65% of the market share, and therefore the likelihood of consumers using the airline and experiencing a dark pattern one or more times is high.
In November 2023, the Department of Consumer Affairs (DoCA) explored the possibility of integrating the National Consumer Helpline with the Air Sewa Portal, a travel assistance portal, to assist consumers. During a meeting with representatives of airlines and online booking portals, the DoCA highlighted the commonly prevalent “dark patterns” and asked them to find ways to counter such deceptive online practices and protect the interests of consumers in the travel sector.
The Central Consumer Protection Authority (CCPA) had notified the ban on 13 types of dark patterns in November 2023. These include false urgency, shopping cart theft, confirmation embarrassment, forced action, subscription trap, interface interference, bait and switch, drip pricing, covert advertising, prodding, leading questions, SaaS (software as a service) billing, and malware. According to the CCPA notification, dark patterns constitute misleading advertising, unfair trade practice, or violation of consumer rights.
Last year, the Ministry of Consumer Affairs received more than 10,000 complaints regarding deceptive online practices by airlines through the National Consumer Helpline. These complaints suggest that airlines and online travel portals employ various manipulative tactics or “dark patterns” to deceive customers.
The most common complaints cited by airline consumers on LocalCircles regarding airlines revolve around dark patterns such as forced stocks, drip pricing, false urgency and basket poaching.
Tips to avoid drip pricing:
- Browsing in incognito or private mode can prevent websites from tracking your search history and potentially inflating prices.
- Periodically 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.
- Use travel search engines to compare fares between multiple airlines.
- Consider alternative travel dates to account for potential price differences.
- Joining airline loyalty programs can sometimes offer discounts or early access to deals.
- A Use tools to track rate fluctuations and receive notifications when prices drop.
Bonus tip: Be aware of new DGCA rules that require airlines to unbundle services such as baggage fees, seat selection and meals. This could lead to more transparent pricing and potentially lower base fares.
First published: August 19, 2024 | 11:04 a.m. IS
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