‘A threat to travel sector’
The Civil Aviation Ministry's draft directive prohibiting travel agencies from buying or selling tickets through other agencies has sparked criticism, with industry leaders warning of severe business disruptions.
The Association of Travel Agents of Bangladesh (ATAB), which represents around 4,000 travel agencies, has strongly opposed the move, calling it a threat to the sector.
For all latest news, follow The Daily Star's Google News channel. "If the ministry enforces this anti-business decision, we will not accept it," ATAB President Abdus Salam Aref told The Daily Star.
The ministry recently drafted guidelines aimed at enhancing transparency and preventing customer harassment in the travel agency sector.
However, a clause of the draft, which states, "A travel agency shall not buy or sell tickets through another travel agency," has drawn opposition from stakeholders.
If the ministry enforces this anti-business decision, we will not accept it.
Industry leaders argue that such a restriction would force thousands of agencies out of business and increase difficulties for customers.
SN Manzur Murshed, former ATAB president, said it undermines the globally accepted agent-to-agent (B2B) model.
"If Bangladesh deviates from this norm, local agencies will struggle to compete internationally, impacting millions of people," he said. "If the ministry approves this draft, it will mark a black chapter for the industry."
Murshed also highlighted the impracticality of the clause, pointing out that General Sales Agents (GSAs) of airlines, which function as travel agencies, would be unable to sell tickets to other agencies.
Currently, Bangladesh has around 5,700 licensed travel agencies, but only 970 are accredited by the International Air Transport Association (IATA).
Among these, just 350 agencies have ticket-selling authorisation for major airlines such as Emirates, Qatar Airways, Singapore Airlines, and Saudi Arabian Airlines.
As a result, over 5,000 licensed agencies rely on these 350 for ticket procurement.
If the government enforces this restriction, smaller and mid-sized agencies will be forced to shut down, stakeholders warn.
Aref stressed that travel agencies often buy tickets from each other when facing temporary cash flow issues. "If this proposal is approved, it will create chaos in the sector," he said.
A travel agency owner, speaking anonymously, said airlines refuse to grant ticket-selling authority to smaller agencies due to lower bank guarantees.
"If this circular is enforced, we will have no choice but to shut down," he said.
He further warned that such restrictions would allow large agencies to monopolise the market.
Another contentious clause mandates that travel agencies obtain IATA accreditation and membership to operate.
Industry experts argue that IATA is merely a ticket-selling platform and making its membership mandatory is unprecedented.
Globally, travel agencies operate under two models -- those affiliated with IATA and non-IATA agencies.
The ministry will not take any measures that create difficulties for travel agencies.
Typically, larger agencies obtain IATA accreditation, as it requires a substantial bank guarantee and a waiting period of several years.
To apply for IATA membership, an agency must operate for at least six months and submit various documents, including a bank guarantee of Tk 3 million. However, even with all documents in order, this guarantee allows the agency to sell tickets for only 3-4 airlines. Moreover, agencies can only use 70 percent of their guarantee amount -- Tk 2.1 million -- for ticket purchases.
According to the Civil Aviation Ministry, 4,470 out of 5,700 registered travel agencies (about 83 percent) do not have IATA accreditation.
If the proposed regulation is implemented, these agencies will be unable to sell tickets, leading to a ticket shortage and significant passenger inconvenience.
Discussions with travel agencies reveal that all IATA-accredited agencies are based in Dhaka, Chattogram, Sylhet, Feni, Noakhali, and Rajshahi.
In other cities, licensed agencies rely on buying and selling tickets through one another.
If IATA accreditation becomes mandatory, 4,470 agencies in smaller towns and remote areas will be forced to shut down, forcing passengers to travel to district headquarters for tickets, increasing costs and inconvenience.
Stakeholders urged the ministry to consult industry representatives before finalising the draft.
When asked, Mohammad Ataur Rahman, joint secretary at the Civil Aviation Ministry, said, "The ministry will not take any measures that create difficulties for travel agencies."
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