IndiGo opts out of MakeMyTrip, Jet puts a cap on ticket sales [Updated]
“The arbitrary display of fares and opaque pricing is anti-consumer and in violation of DGCA norms and directives. We have raised this with MakeMyTrip on several occasions but, unfortunately, there has been no resolution. We were therefore left with no choice. IndiGo can’t be seen supporting a blatant violation of the law.” [Aditya Ghosh, president of IndiGo]
Also, jet airways has capped tickets on MMT portal to 5 seats a day (has a daily inventory of about 80,000 seats on its domestic and international routes):
“We have put a cap on ticket sales. The portal is offering rock-bottom fares. This is killing the market. It is acting like a banker to Kingfisher Airlines. We have told them we will not participate until they stop selling these low fares,” [source]
MMT, on the other hand says ‘Opaque Fares’ are win-win for Customers and Airlines. In a release issued on March 27th:
“Opaque fares” is an internationally accepted practice used by airlines and hotels to sell their unsold inventory at a discounted price. This generally helps prevent sales of unsold inventory from adversely affecting full-price retail sales. The pricing and inventory is entirely controlled by the airlines and sold through their sales channels like OTAs. MakeMyTrip believes that special promotions like this offer a win-win opportunity for both the customers who get discounted deals and help airlines to optimize their revenue.”
For MMT, unsold inventory probably translates to unsold ‘Kingfisher’ inventory and now that Jet and Indigo have gone vocal about this practice (combined, the two airlines own ~50% market share), expect travel portals to get more consumer friendly (and relook at opaque fare practice).
“In compliance with the Directive of the DGCA, we regret to inform that the Opaque ticket scheme is withdrawn with immediate effect. We will be happy to process your refund immediately. We are committed to making travel offers exciting for you and promise to come up with new and innovative offers in future.” [source]