Travel Agents Association calls for bulk ticket sales ban to check airfare surge

Highlights:

• Over 60,000 air seats hoarded, claims ATAB
• Fewer flights, smaller planes push airfares higher
• Limited domestic capacity, payment delays add to fare woes
• ATAB demands release of hoarded tickets, end to bulk bookings

Around 60,000 bulk tickets hoarded through alleged collusion between airlines and travel agents, alongside a reduction of approximately 52 flights per week, are the key factors behind the recent surge in airfares, according to the Association of Travel Agents Bangladesh (ATAB).

"Foreign airlines such as Air Arabia, Fly Dubai, Jazeera Air, Oman Air, and Saudi Airlines, which previously operated 98 flights weekly on Middle Eastern routes, have now reduced their operations to 46 flights. Flynas has also suspended five weekly flights," said ATAB President Abdus Salam Aref at a press conference held at a Dhaka hotel today.

The reduction in flights follows political instability during the July-August uprising, which disrupted outbound and inbound passenger traffic.

"The number of flights has not increased despite the rising demand for travel. Some airlines claim that they did not get permission from the Civil Aviation Authority to increase flights. Hence, the supply-demand imbalance and higher airfares," Aref said.

Adding to the problem, several airlines have reportedly downsized their aircraft, reducing capacity from 220 seats to 168, which has further strained availability and led to the loss of nearly 1,600 seats.

Bulk ticket hoarding mechanism

ATAB pointed to bulk ticket hoarding as the primary cause of inflated airfares. Airlines are accused of booking group tickets without requiring passenger information such as passports, visas, or work permits.

"Middle East-bound airlines block group seats through selected agencies without any travel documents or passenger lists, merely creating passenger name records (PNRs) months in advance via email," explained Aref.

This practice allegedly creates artificial shortages, allowing syndicates to monopolise the market, driving up ticket prices by 20%-50%, and in some cases doubling or tripling fares. This significantly impacts overseas workers, students, and expatriates.

The blocked tickets are often for high-demand routes such as Riyadh, Dammam, Jeddah, Oman, Doha, and Kuala Lumpur, which also indirectly affects ticket prices on other international routes, including London, New York, and Europe.

"Nameless group bookings through select agencies have enabled Middle Eastern airlines to create a market monopoly," Aref said.

While identifying the issue, ATAB did not disclose the names of travel agents allegedly involved in the syndicate.

ATAB has demanded an immediate end to the practice of selling bulk tickets without passenger details. The organisation stressed that releasing the over 60,000 currently hoarded seats could alleviate the crisis and stabilise ticket prices.

Additional factors driving up airfares

ATAB highlighted other contributing factors, including the increased recruitment of Bangladeshi workers in Saudi Arabia.

According to Bureau of Manpower, Employment and Training (BMET) data, over one million Bangladeshi workers were legally employed abroad in 2024, with Saudi Arabia being the largest market.

Recruitment rates doubled in the last quarter of 2024, with 298,430 workers recruited between September and December alone.  

The limited capacity of domestic airlines and delays in foreign airlines receiving payments were also cited as challenges exacerbating the issue.  

Airfare trends

ATAB shared a comparison of airfares over four months, revealing significant price fluctuations.

For example, on the Dhaka-Riyadh route, Saudi Airlines tickets priced at Tk191,261 in January and February are expected to drop to Tk62,883 in March and Tk67,202 in April.

Similarly, Biman Bangladesh Airlines tickets for the same route are projected to decrease from Tk142,069 in February to Tk61,683 in March.

Despite these reductions, many Bangladeshi migrants previously paid Tk55,000 to Tk77,000 for Dhaka-Riyadh tickets booked a month in advance, underscoring the continued financial strain caused by the current airfare hikes.