TL;DR They are charging you for something they themselves aren’t going to be charged for and selling you a promise which they can back out from anytime citing operational reasons.
The subterfuge regarding air travel and tickets is generated by these websites, Yatra, MakeMyTrip, SkyScanner through such “promotional” schemes.
A seat isn’t “booked” till a PNR is created, and even after creation it isn’t “confirmed” till the payment for it goes through. PNR creation itself is a task that requires care and diligence. Incorrect PNF(Passenger Name Format” in PNR can ground a person if the issuing agent isn’t careful. Upon creation, almost everything can be changed in it except for name. Once created, this PNR has a time limit, akin to TTL value in computer networks. Now this time limit varies, consequent to Airline, Sector(route) and class of fare and travel dates chosen. A Qatar Airlines PNR for Delhi to Doha for travel after 2 days will have time limit of a couple of hours while a PNR on same airline for travel after a month will have time limit of 24+ hours easily.
What this time limit actually achieves is not holding of seat but of fare. Generally people think, Economy is economy, and then there is business class and first class but in reality all these classes are further divided, the distinction being the fare and fare rules aka penalties, which decide whether you would get a refund or not. I digress, let me come back.
Now you would think, what’s the big deal, lets make a PNR and lessgo! Not so fast clucky! Making a PNR is akin to asking someone here with a sale thread to hold the item for them. While you are doing that, you might be passing on or holding back on interest queries from other prospective buyers. Now if you back off, do not confirm your interest with payment (issuing ticket against PNR), the seller will be miffed to say the least. Same goes here and that’s where Airlines issue ADM (Agency Debit Memo), which could be anything from a 50/- charge to 80% of fare value. Thus a PNR is something that has to be thought through before committing.
This is what MMT is charging you for creating PNR. If it’s a highly active sector, the likelihood of getting an ADM increases in case of repeated PNR creation and auto-cancellation. In case of the big agencies such as MMT and Yatra, they usually have seat blocks allocated to them through Airlines GSA (Ground Sales Agent), where the Airline would get flat fee for the seats sold, and these agencies have to sell them however they see fit, at whatever premium/discount they can charge but such facility is not provided by every airline and only for limited sectors.
So from travel agency’s point, if it’s block fare, they have a prospective sale, no worry of ADM. If it’s a low activity sector, chance of ADM is low, if it’s a high activity sector and by chance PNR is not confirmed and ADM is raised, which is a worst case scenario, within the sheer volume of tickets being issued, it can be chalked up to operational loss, to be written off as deductible in next tax filing.
So basically “ woh 500 rupaye muft k bana gye”