Online scamsters rattle Bangladesh's $1b air ticket market

Infographics: TBS

Frequent scams involving online travel agencies are shaking confidence in Bangladesh's $1 billion air ticket market, with industry insiders accusing regulators of turning a blind eye to widespread malpractice.

At least three online travel agencies have shut down and vanished over the past two months, allegedly taking hundreds of crores of taka from customers – many of them small and medium-sized travel agents. Passengers, too, have lost money to enticing discounts and advance-purchase offers that later proved fraudulent.

Several long-established travel agencies have also been implicated in similar misconduct, exposing deep flaws in oversight and accountability.

Industry figures say weak monitoring, the absence of a clear policy on online travel agents, and a system that allows agents to cancel tickets without passenger consent have enabled repeated frauds.

Less than a week after the Fly Far International scandal surfaced, another online agency, Travel Business Portal, abruptly shut down in October, disappearing after collecting advance payments from hundreds of clients.

Travel Business became the third major online travel scam in two months, following Flight Expert, whose owners allegedly fled the country in August with customer funds worth several hundred crores of taka.

Police have received multiple complaints from travel agents, while earlier scandals involving 24Ticket.com and FlightBooking.com remain unresolved.

"By offering heavy discounts, collecting advance payments and promising cashbacks, the online travel agencies took hundreds of crores of taka and then suddenly disappeared," said Afsia Jannat Saleh, former secretary general of the Association of Travel Agents of Bangladesh (ATAB).

"We wrote to the ministry several times to stop this. Had effective measures been taken, these repeated frauds would not have happened," she told The Business Standard.

Government steps in – belatedly

Amid mounting complaints, the government has moved to tighten control, issuing a draft ordinance to overhaul travel-agency registration and regulation.

The proposal seeks to ban business-to-business (B2B) ticket sales between agencies – the system at the heart of most scams. It also requires online travel agencies to furnish a bank guarantee of Tk1 crore, while offline agencies will need Tk10 lakh.

Attempts to reach Md Monzurul Alam, managing director of Travel Business Portal, were unsuccessful as his phone remained switched off. Emon Alam, the company's general manager, was also unreachable.

However, an official from the company told TBS that it owes customers about Tk28 crore.

"We have no idea how the MD and three other owners vanished so suddenly. We're now worried about our safety and future, fearing backlash from angry clients," the official said.

Inside the industry

Bangladesh has about 5,000 licensed travel agents, approved by the Ministry of Civil Aviation and Tourism, but there is no requirement to deposit funds to secure that licence.

To operate fully, agencies must obtain accreditation from the International Air Transport Association (IATA), which requires a financial guarantee. Around 1,300 agencies hold IATA approval, but only 700-750 issue tickets regularly. The rest operate as sub-agents.

ATAB estimates the monthly air-ticket market at Tk1,200-1,300 crore, with annual sales exceeding $1 billion.

Online ticketing still accounts for just 10-12% of total sales, though the number of online travel agencies – around 12-15, led by ShareTrip and GoZayaan – is growing rapidly.

Offline agents accused too

A senior executive at a leading online travel agency told TBS that none of the three collapsed online travel agencies purchased tickets directly from airlines. Instead, they obtained them on credit from large agents such as Hajee Air Travel, Valencia Air Travels & Tours, Soma Travels, and Dynamic Travels.

"These agencies issued tickets worth crores without any security. You can't offer Tk30 crore in unsecured credit for a digital product that can't be recovered once flown," he said.

He dismissed claims that the failed online travel agencies were victims of deception by larger agents, calling it "a convenient excuse" and insisting they were "partners in crime".

Nirmal Chandra Bairagi, managing director of Hajee Air Travel, denied any wrongdoing.

"We lost more than Tk30 crore to Flight Expert, Tk8 crore to Fly Far, and over Tk2 crore to Travel Business Online," he said.

A social-media post circulating among industry insiders alleged that unsecured ticket sales may also be linked to tax manipulation.

"Higher reported sales allow inflated tax filings, which can be used to hide funds or shift ownership. Some benefit without paying proper taxes," the post claimed.

Such agencies compete to become "top sellers" for airlines – a status that brings private fares, extra commissions, and perks such as overseas trips and awards.

After Flight Expert officials fled, ATAB suspended its membership, stating that online travel agencies were "distorting ticket prices" and engaging in "unhealthy competition" by offering discounts of Tk3,000-5,000 per ticket or more.

Didarul Islam, a former ATAB executive committee member, estimated that with an IATA bank guarantee of Tk50 crore, Flight Expert's transactions could have been worth around Tk100 crore.

Regulators under fire

The Civil Aviation and Tourism Ministry, together with the Directorate of National Consumer Rights Protection, has begun joint drives in response to the recent scandals. But insiders say enforcement remains weak.

"The ministry could identify the culprits in a single day," said a senior executive of a travel agency.

"They just need to ask agencies claiming Tk30 crore in dues to show their last invoice — that would reveal who owes what. Yet no one has done this."

TBS tried to contact Civil Aviation Adviser SK Bashir Uddin and Secretary Nasreen Jahan by phone and message, but received no response.

On 16 October, the ministry warned that several online travel agents were operating without approval and instructed them to apply through the Online Travel Agency Management System by 6 November 2025.

Motakabbir Ahmed, who served as ATAB administrator during the recent scams, said the trade body lacked authority to take punitive action.

"ATAB is a trade organisation, not a regulator. We repeatedly urged the ministry to act decisively," he said.

Industry sources noted that IATA can use bank guarantees to settle accounts when a member disappears – protecting airlines, but not customers or sub-agents.

How travellers can protect themselves

Industry insiders advised travellers to be cautious when booking through online or unknown agents.

"For individual customers, the safest method is paying by credit or debit card," said the managing director of an online travel agency.
"Visa and MasterCard allow disputes within 180 days if services aren't delivered, ensuring a refund."

Sub-agents, he added, should secure tickets with bank guarantees or cash deposits instead of relying on unsecured credit.

Sohail Majid, NOVOAIR marketing director and former ShareTrip executive, advised:

"Always track the agency you paid to, then verify ticket validity directly with the airline."

Kamrul Islam, spokesperson for US-Bangla Airlines, said:

"With such scams rising, passengers should buy directly from airlines, or the ministry should consider banning B2B ticket sales altogether."