Cebu Pacific Unites AirAsia, and Thai VietJet to be Under Fire as Southeast Asia’s Budget Airlines Accused of Hidden Fees, Over-Booking, and Tourist Rip-Off Scandals in the Philippines, Thailand, and Indonesia: What You Need to Know

The rapid growth of low-cost carriers in Southeast Asia has made air travel accessible to millions, yet the same expansion has been accompanied by rising concerns about unfair practices, hidden costs, and poor customer service. Travellers have increasingly found that the advertised low fares conceal multiple surcharges, and that confirmed bookings may not always result in actual boarding. Reports from the Philippines, Thailand, and Indonesia indicate that airlines such as Cebu Pacific Air and AirAsia are often associated with cases of denied boarding, additional fees, and refund difficulties. Although these behaviours may be explained by financial pressures and competition, the cumulative pattern suggests that some passengers—especially tourists—experience the system as one that promises affordability while extracting extra value through opaque policies.

Hidden Fees and Fare Structures

The most common grievance among passengers of regional budget carriers has involved unexpected fees that appear after the initial booking stage. AirAsia’s operations in Thailand and the broader region have often been identified in traveller forums as applying strict baggage rules and extra payment requirements. Travellers have described situations in which small carry-on bags led to heavy surcharges, while online payments were said to include additional convenience fees that were not highlighted at first. Reviewers have indicated that these charges were presented late in the booking process, creating confusion about the true cost of travel. Although unbundled pricing is an accepted part of the low-cost airline model, the problem arises when passengers—especially first-time visitors—are unaware of the extent to which the fare excludes standard services. The perception then develops that the airline has promised a low price but delivered a higher overall cost through small-print clauses.

Over-booking, Off-loading, and Denied Boarding

In the Philippines, Cebu Pacific Air has been repeatedly linked to over-booking controversies. Travellers have reported being denied boarding despite holding confirmed tickets, and the issue reached the Senate in 2023 after numerous complaints were lodged. It was stated during hearings that passengers were sometimes removed from flights without valid reasons and that compensation procedures were unclear. In earlier years, the courts had already ruled against the airline in similar disputes, and damages were ordered to be paid to affected passengers. According to the Civil Aeronautics Board (CAB), over-booking is legally permissible but must be handled with volunteer requests, proper compensation, and priority re-booking. The persistence of complaints implies that these conditions have not always been met. The regulatory framework allows over-booking to manage operational risks, yet its application has sometimes resulted in passengers losing seats without adequate recourse.

Refunds, Customer Service, and Operational Failures

Another category of complaint centres on refund delays and customer-service breakdowns. Many passengers have reported long waits for reimbursements after cancellations or schedule changes. In online reviews, travellers have stated that refund requests were acknowledged but never completed, and customer-service hotlines were said to be unresponsive. Similar experiences were documented among AirAsia customers, who expressed frustration at long response times and difficulty in obtaining information about delayed or cancelled flights. It has been observed that low-cost airlines operate with minimal staffing at customer-support levels, leading to communication gaps when service failures occur. As a result, passengers perceive that accountability is being avoided and that the burden of persistence falls entirely on them.

Economic Pressures and Business Incentives

The behaviour of these airlines can be better understood when examined through the economic pressures shaping the regional aviation market. In 2025, reports by international news agencies indicated that airfares in Asia had fallen by around nine percent compared with the previous year, while costs related to labour, airport charges, and aircraft leasing had risen. In this environment of shrinking margins and intense competition, airlines have been forced to increase ancillary revenue, relying heavily on baggage fees, seat selection charges, and convenience surcharges. Capacity expansion across Southeast Asia has created an environment in which carriers compete primarily on ticket price, leaving little room for service investment. It has been suggested by aviation analysts that the pursuit of profitability under such conditions encourages risk-shifting to passengers: costs that were once internal to the airline’s operations are now externalised through optional fees or less flexible terms.

Tourist Vulnerability and Perception of Exploitation

Tourists arriving in Southeast Asia are often less familiar with regional travel norms, local regulations, and fare structures. This lack of familiarity has been seen as a source of vulnerability. Visitors who assume that a confirmed booking guarantees a seat or that basic services such as baggage allowance are included may find themselves surprised by additional charges or off-loading incidents. Although no official evidence has shown deliberate discrimination against tourists, the combination of opaque pricing and weak complaint mechanisms affects non-local travellers more severely. Negative experiences spread quickly through online reviews, damaging the image of the destination countries. In Thailand and the Philippines, tourism officials have expressed concern that such airline controversies could undermine efforts to revive visitor confidence after the pandemic.

Regulatory Framework and Enforcement Weaknesses

The existence of rules on passenger rights has not prevented these problems, mainly because enforcement remains inconsistent. The Civil Aeronautics Board of the Philippines has confirmed that over-booking is allowed but must be managed with care. However, consumer advocates have observed that no firm cap exists on the permissible rate of over-booking, leaving room for abuse. Editorial commentary in local media has described this as a structural weakness in the system and called for legislative amendments to ensure stricter oversight. In Thailand and Indonesia, passenger-rights enforcement is even less visible, and no comprehensive record of airline penalties for hidden fees or tourist-specific mistreatment has been published. The overall impression is that the framework for protecting travellers exists on paper but lacks the investigative and punitive power necessary to deter unfair behaviour.

Airline Profiles and Case Studies

Cebu Pacific Air

Cebu Pacific’s business model has relied on aggressive fare promotions and high aircraft utilisation. While this approach enabled wide market penetration, it also produced frequent operational bottlenecks. Complaints documented in consumer-rights groups describe passengers being off-loaded due to system “glitches” or excess bookings, followed by minimal assistance or delayed re-booking. Legislative inquiries in Manila highlighted the scale of the grievances, prompting the airline to issue public apologies and operational reviews. The underlying issue appears to stem from the tension between maintaining profitability and upholding service reliability in a cost-driven model.

AirAsia (Regional and Thai Affiliate)

AirAsia, as Southeast Asia’s most prominent low-cost carrier, has faced scrutiny for its fee structures and customer-service policies. Passengers have reported situations in which minor deviations from baggage limits resulted in large extra payments, and convenience charges were added late in the online booking process. These complaints have appeared across regional branches of the airline, from Malaysia to Thailand and Indonesia. The company’s strong emphasis on automation and digital self-service has also contributed to perceptions of limited human support when disputes arise. Given its dominant position in the region, AirAsia’s operational behaviour strongly influences passenger expectations and the standards followed by smaller competitors.

The Question of Cheating versus Business Model Reality

The classification of these practices as cheating depends largely on intent and transparency. Industry observers have noted that low-cost airlines globally depend on “unbundling,” where passengers pay only for what they use. However, when information about exclusions is not prominently displayed or when unavoidable services are redefined as optional, the distinction between cost-efficiency and deception becomes blurred. In Southeast Asia, where regulatory enforcement is limited, the distinction grows even murkier. Many travellers feel that they have been misled not because of fraudulent activity in the legal sense but because the airlines have designed systems that rely on consumer inattention or misunderstanding. The model therefore operates within legality while generating widespread dissatisfaction.

Implications for Travellers

Passengers flying within Southeast Asia are advised to approach low-cost fares with caution. All baggage rules, seat selection costs, and payment surcharges should be reviewed carefully before confirming a booking. Arriving early at airports and monitoring online check-in status are prudent steps, particularly on high-demand routes where over-booking is common. For essential travel or tight schedules, a higher-priced carrier with stronger customer-service standards may reduce risk. Travellers are also encouraged to familiarise themselves with local regulations, such as the CAB guidelines in the Philippines for denied boarding, and to keep receipts and communication records for possible compensation claims.

Overall Assessment

The transformation of Southeast Asia’s aviation landscape through low-cost carriers has democratised travel but has also created structural imbalances between passenger expectation and airline conduct. Hidden fees, over-booking, and customer-service failures have emerged not as isolated mistakes but as features of an intensely competitive business ecosystem. Airlines such as Cebu Pacific and AirAsia have exemplified both the strengths and weaknesses of this model. While there is little evidence of systematic criminal fraud, the accumulation of minor inconveniences, unexpected payments, and procedural opacity has fostered the perception that passengers are being misled. Regulatory reform, stronger disclosure requirements, and consumer education are therefore essential to restoring trust.

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