New Delhi: A passenger’s frustrating experience with an online travel agency (OTA) has sparked widespread outrage and drawn government attention to the high cancellation fees charged by platforms compared to direct airline bookings.
Ashwin Gandhi, a user active on X as @PantryCar, booked an Akasa Air flight ticket through Agoda. When he decided to cancel the ticket, Agoda deducted a massive cancellation fee of ₹4,764, leaving him with a refund of just ₹1,571 — a deduction of more than 67% of the original amount.
Disappointed with the huge gap, Gandhi checked the cancellation policy directly with Akasa Air. He found that the airline’s own cancellation charges were significantly lower. His complaint quickly went viral, highlighting how intermediaries often add hefty service and convenience fees on top of airline penalties.
Growing Complaints Against OTAs
This is not an isolated case. Several passengers have recently shared similar experiences on social media, accusing OTAs like Agoda and MakeMyTrip of levying excessive cancellation charges. Critics argue that these platforms are “misusing money” by profiting heavily from cancellations, even when the airline itself imposes much smaller penalties.
The issue gained further traction when prominent voices, including a BJP leader, amplified the concerns. In response, Union Minister Pralhad Joshi directed the Central Consumer Protection Authority (CCPA) to investigate major OTAs for potentially unfair trade practices and violation of consumer rights.
What Do DGCA Rules Say?
The Directorate General of Civil Aviation (DGCA) has laid down guidelines to protect flyers. Key points include:
- Full or near-full refunds are often available if cancellation is done within 24-48 hours of booking (for flights scheduled more than 7 days away).
- Airlines must clearly display cancellation policies and charges.
- In case of airline-initiated cancellations or significant delays, passengers are entitled to full refunds including taxes.
- Refunds should be processed within stipulated timelines, usually 7 days for credit card payments.
Despite these rules, OTAs frequently layer additional fees, leading to the large difference passengers experience between platform bookings and direct airline bookings.
Why the Huge Difference?
Online travel agencies function as middlemen. They charge their own service fees, convenience charges, and processing costs in addition to the airline’s fare and cancellation policy. These extra charges become particularly visible — and painful — during cancellations. Low-fare or non-refundable tickets naturally carry higher penalties, but the OTA markup often makes the final refund much smaller than expected.
Experts and consumer advocates recommend booking directly with airlines whenever possible to avoid such inflated deductions and enjoy clearer terms.
Advice for Passengers
- Always compare prices and cancellation policies on the airline’s official website before booking through an OTA.
- Take screenshots of the terms and conditions at the time of booking.
- In case of disputes, first contact the airline directly, then use the AirSewa portal or escalate the matter to consumer forums or the CCPA.
This viral incident serves as a timely reminder for both passengers and platforms. With the government probe underway, tighter regulations on fee transparency and fair cancellation practices may soon be on the horizon. Passengers are advised to stay informed about their rights to avoid similar financial setbacks in the future.
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