Government Proposes Ban on Agent-to-Agent Ticket Sales; Faces Opposition from Travel Agencies

The Ministry of Civil Aviation and Tourism is in the process of drafting a circular aimed at regulating the operations of travel agencies in the country. According to the proposed circular, licensed travel agencies will no longer be permitted to engage in agent-to-agent (B2B) ticket sales. The objective behind this move is to enhance transparency and accountability in the sector and to prevent instances of consumer harassment. However, this proposal has drawn strong opposition from travel agencies, who argue that the B2B ticketing model is widely recognised globally and essential for maintaining operational viability, especially for small and mid-sized agencies. The draft further stipulates that all travel agencies must obtain accreditation and membership from the International Air Transport Association (IATA) to continue their operations. Currently, only 970 of the 5,746 licensed travel agencies in the country are IATA-accredited, and merely 350 are authorised to sell tickets for major international airlines.

Obtaining IATA membership requires a minimum security deposit of Tk 4 million, posing a significant financial barrier. Furthermore, some international airlines, such as Air Arabia, Indigo, Salam Air, and Jazeera Airways, do not operate under the IATA framework, leaving over 5,000 non-IATA agencies dependent on the accredited ones for ticketing. Stakeholders fear that banning agent-to-agent ticket sales would lead to the closure of numerous agencies, particularly those operating in districts outside Dhaka, Chattogram, Sylhet, Feni, Noakhali, and Rajshahi—where all IATA-certified agencies are currently based. Ministry sources have confirmed multiple internal discussions on the draft, although the circular has not yet been finalised. Additional Secretary (Tourism), Ms. Fatema Rahim Veena, declined to comment on the matter.

As per ministry data, 4,476 travel agencies, or 83% of the total, do not hold IATA accreditation and would be barred from selling tickets if the circular is enforced, potentially causing a ticketing crisis and severe inconvenience to travellers. Industry representatives argue that mandatory IATA certification is not an international norm and question the intent behind such a directive. They point out that acquiring IATA status is not only financially restrictive—with a Tk 3 million bank guarantee requirement—but also time-consuming, often taking years to process. Even upon approval, such agencies can only purchase a limited number of tickets based on their deposit cap. Gofran Chowdhury, owner of Moin Travels, revealed that the majority of his tickets are sourced through other licensed agencies due to low bank guarantees, and warned that the proposed regulation could force his agency to shut down. He further cautioned that the policy may enable larger agencies to dominate the market, pushing out smaller operators and inviting foreign control over the air ticketing industry.

Additionally, Afsia Jannat Saleh, Secretary General of the Association of Travel Agents of Bangladesh (ATAB), stated that the association was neither consulted nor formally notified about the circular. She affirmed that ATAB would not support any ban on B2B ticketing, pointing out that only a small proportion of the nation’s travel agencies are IATA-accredited and most others lack the means to qualify. According to her, enforcing such a policy would have widespread negative implications for the domestic travel sector.