New travel agency ordinance targets fraudulent ticket practices, not lawful businesses: Ministry

The Ministry of Civil Aviation and Tourism today (5 January) clarified that the newly promulgated Travel Agency Registration and Control Ordinance – 2026 is intended to protect passengers, migrant workers, and consumers by curbing ticket syndication – not to shut down legitimate travel businesses.

The statement came amid rising concern and protests from the travel agency industry, which has described the ordinance as "anti-business" and warned that thousands of agencies could face closure.

In a press conference, Civil Aviation Adviser Sheikh Bashir Uddin said the ordinance was introduced to tackle widespread irregularities in the travel trade, including advance payment fraud, overcharging, fake bookings, unauthorised ticket issuance, and deception of outbound migrant workers. 

Such practices, he noted, have intensified in recent years, particularly through online and unregulated platforms.

"The ordinance has made syndication and malpractice in ticketing significantly more difficult," Bashir Uddin said. "We have complicated the processes used for syndication so that unethical operators can no longer function easily." 

He added that extensive consultations were held with stakeholders and experts to create maximum barriers against malpractice.

He also stressed that the ordinance aims to rationalise fares, not merely reduce them. 

"Ticket prices have already fallen by 40-50%, but they remain unjustified. Prices should come down further to a reasonable level," he said.

Under the new law, travel agencies must display their name, registration number, and the actual ticket price on all airline tickets to ensure transparency and protect consumers. The ordinance also introduces clearer rules for B2B transactions, mandates the use of authorised airline systems such as GDS, NDC, or designated web portals, and restricts practices like fake bookings or artificial seat shortages that distort the market.

Bank guarantees have also been updated: online travel agencies must provide a Tk10 million guarantee due to higher transaction volumes and risks, while offline agencies must submit Tk1 million, reflecting their smaller scale. 

The ordinance further strengthens monitoring and accountability, requiring agencies to submit regular financial and operational reports. Registration renewals will be reviewed for compliance, and penalties for violations have been revised to discourage repeated misconduct.

The ministry emphasised that the ordinance is not intended to arbitrarily close businesses. Legitimate agencies violating provisions may settle through fines, ensuring they can continue operating while maintaining discipline in the sector.

Industry leaders, however, remain critical. At a press conference at the National Press Club yesterday, representatives warned the law could cripple the sector and force nearly 5,000 agencies to shut down. 

Former ATAB president Manzur Morshed Mahbub said the amended provisions effectively ban ticket buying and selling between agencies, severely impacting non-IATA agencies that lack the capacity to issue tickets independently.

In response, the ministry reiterated that the ordinance seeks to create a transparent, competitive, and consumer-friendly travel market, eliminating fraud, syndication, and unethical practices that have long harmed passengers and migrant workers.