Travel agents in Bangladesh demand crackdown on bulk ticketing practices

The ATAB president says ticket prices soar by 20 to 50 percent due to ticket hoarding

The Association of Travel Agents of Bangladesh, or ATAB, has called for a reduction in air ticket prices, alongside an end to the sale and hoarding of bulk tickets lacking essential passenger information, such as names, passports, and visas.

The demands were made during a press conference at a hotel in Dhaka’s Naya Paltan on Sunday.

ATAB President Abdus Salam Aref said, “One of the most pressing issues within Bangladesh's civil aviation sector is the sharp increase in air ticket prices.”

He attributed this surge largely to the practice of anonymous group ticket booking.

“Some airlines serving routes to the Middle East block group seats by creating Passenger Name Records (PNRs) 2 to 3 months in advance.

"These records are created under the names of select agencies, without passports, visas, travel documents, work permits for expatriate workers, or even passenger lists."

According to Aref, such ticket hoarding leads to the formation of syndicates, resulting in seat shortages. Consequently, ticket prices soar by 20 to 50 percent, and in some cases, they can even triple.

This, he argued, forces workers, students, and expatriates traveling abroad to face substantial financial losses.

He attributed the widespread use of this method primarily to airlines servicing Middle East routes.

“They adopt this strategy to guarantee seat sales well in advance of flight dates and to maximise their profits.”

Aref highlighted that seats on various high-demand routes, including Riyadh, Dammam, Jeddah, Oman, Doha, and Kuala Lumpur, are being blocked.

“For instance,” he explained, “in the case of Umrah, or sending workers abroad, open group seats are sold without assigning names.”

The practice has ripple effect on ticket prices for other international routes, such as those to London, New York and other destinations in Europe, and the United States.

“Airlines operating Middle East-bound flights engage in group bookings without passenger details and sell these tickets through a select group of agencies, thereby creating a monopoly in the market.”

The ATAB president also pointed out that another contributing factor to rising ticket prices is the reduction in the number of flights operated by airlines.

He explained, "Many airlines are not even utilising the flight slots allocated to them, disrupting the delicate balance of supply and demand by cutting back on flight frequencies."

This reduction, he argued, exacerbates the price surge, further burdening consumers.

Aref said the disruption in the country's inbound and outbound passenger transport, following the July-August movement, had a lasting impact.

He noted that both departure and arrival rates had decreased significantly, prompting airlines to scale back their flight schedules.

“With the country’s situation returning to normal, the rate of tourist departures and arrivals has been steadily rising. As demand for flights has surged, the limited number of available flights has resulted in a shortage of seats.”

The ATAB chief said this imbalance has led to ticket prices increasing to levels that are becoming unsustainable for many passengers.

He pointed out that airlines such as Air Arabia, Fly Dubai, Jazeera Air, Oman Air, and Saudi Airlines, which previously operated 98 flights a week on various Middle East routes, have now cut back to just 46 flights.

This marks a reduction of 52 flights. Additionally, Flynas has ceased operating five flights a week.

Aref added that these airlines, which once relied on large aircraft with a capacity of 220 passengers, have now switched to smaller planes that can accommodate only 168 passengers on most flights.

The shift has resulted in a loss of approximately 1,600 seats, further exacerbating the shortage and driving up ticket prices.

He also noted that the surge in labour transportation to Saudi Arabia has contributed significantly to the rise in airfare prices.

Citing data from the Bureau of Manpower, Employment and Training, or BMET, he pointed out that in 2024, a total of 1,011,969 workers were legally employed abroad with clearances.

Among these, Saudi Arabia remains the largest labour market, further increasing demand for flights to the region and subsequently driving up ticket prices.

"In 2024, 628,563 workers were hired in Saudi Arabia. Of them, 298,430 workers were hired between September and December. Workers were hired at a double rate between October and December,” said Aref.

Aref also attributed the rising fares to several other factors, including the imbalance between demand and supply of airline services, the limited capacity of domestic carriers, and the delayed payments of dues by foreign airlines.

At the press conference, several demands were raised on behalf of ATAB. These are as follows:

• Increasing flight schedules, arranging additional flight operations, and granting quick approvals, and declaring open skies to encourage airlines from all countries to participate in transporting passengers.
• Prohibiting bookings without proper passenger details, including names, passport numbers, visas, and manpower clearances. Flight inventory is blocked through seat blocking, which is why prices continue to rise. Travel agencies are hoarding air tickets as if they are hoarding products even though there is no demand - this should be stopped.
• More than 60,000 seats are currently blocked by airlines. These seats should be urgently released.
• The Ministry of Civil Aviation and Tourism must address this issue without delay.
• Airlines should maintain an open distribution policy, with clear instructions to sell seats through GDS/NDC, ensuring all agencies have equal opportunities to sell.
• Realistic fare ceilings and floors should be established for various routes to ensure fair pricing.
• Instructions should be given to stop the sale of group tickets or tickets at private rates by airlines.
• Introduce a system to determine standardised labor fares.
• Limit the maximum number of tickets or seats allocated to individual agencies to prevent syndicates. Currently, 10,000 to 20,000 tickets are concentrated in the hands of a few agencies.
• Require airlines to issue tickets for workers and Umrah passengers in a format that includes fare details and agency information. This transparency would ensure passengers see the actual price and prevent overcharging. Tickets must not be issued without clearly stating the price.
• Address the rising fares and halt counter sales conducted by Global Sales Agents, or GSAs.
• Enforce regulations under the Civil Aviation Act and Rules of 1984 to ensure compliance and oversight.
• Although budget airlines claim to offer lower fares, they often sell tickets from Bangladesh at rates comparable to legacy carriers. Regulations specific to budget carriers should be introduced if none currently exists.
• Establish guidelines to regulate the sales methods and marketing practices, ensuring compliance with airline operation standards.
• Create a task force comprising representatives from the Ministry of Civil Aviation and Tourism, the Civil Aviation Authority of Bangladesh, or CAAB, the Ministry of Expatriates' Welfare and Overseas Employment, ATAB, or BMET, the Ministry of Religious Affairs, the National Board of Revenue, or NBR, and Bangladesh Bank to address these issues comprehensively.

The proposed task force would be responsible for addressing issues related to passenger demand, airline capacity, and existing facilities, while also resolving any inconveniences faced by travellers.

It would investigate complaints against unscrupulous travel agents and airline staff, taking appropriate action where necessary.

Additionally, the task force would have the authority to operate mobile courts to ensure compliance and accountability within the aviation sector.