Archive |

Thursday, 30 January, 2025

Bangladesh Travel Agents Call for Crackdown on Bulk Ticketing Practices

Express Report
  27 Jan 2025, 03:09

The Association of Travel Agents of Bangladesh (ATAB) has called for a reduction in air ticket prices and an immediate end to the sale and hoarding of bulk tickets that lack essential passenger details, 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 highlighted the issue, saying, “One of the most pressing concerns within Bangladesh's civil aviation sector is the significant 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."

ATAB President Abdus Salam Aref emphasized that ticket hoarding leads to the formation of syndicates, resulting in seat shortages and a price surge of 20 to 50 percent, and in some cases, ticket prices can even triple. This practice disproportionately impacts workers, students, and expatriates traveling abroad, causing significant financial strain.

He attributed the widespread use of this practice primarily to airlines servicing Middle East routes, which adopt the strategy of selling bulk tickets well in advance of flight dates to guarantee sales and maximize profits.

Aref pointed out that popular routes to Riyadh, Dammam, Jeddah, Oman, Doha, and Kuala Lumpur are being blocked, with airlines selling open group tickets without passenger details, such as names and identification numbers, particularly for Umrah pilgrims and overseas workers.

The practice has a ripple effect on international ticket prices, including routes to London, New York, and other destinations in Europe and the United States. Airlines on Middle East-bound routes create a market monopoly by selling bulk tickets through select agencies, further driving up prices.

Aref also highlighted that the reduction in the number of flights by airlines has worsened the price hike. Many airlines have stopped using their allotted flight slots, disrupting the balance of supply and demand by cutting flight frequencies. This has added to the increasing cost of tickets, exacerbating the burden on consumers.

The ATAB chief cited the lasting impact of the July-August movement, which significantly reduced both departure and arrival rates, leading airlines to scale back their flight schedules. As the situation normalizes, demand for flights has risen sharply, but the limited number of available flights has resulted in a severe shortage of seats.

He noted 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 reduced their operations to just 46 flights a week. This marks a reduction of 52 flights, and some carriers like Flynas have ceased five weekly flights altogether.

Additionally, Aref pointed out that airlines have shifted to smaller aircraft with a reduced passenger capacity, further contributing to the loss of seats and the price hike.

He also addressed the surge in labor transportation to Saudi Arabia, which has played a significant role in driving up airfare prices. According to BMET, over 1 million workers were legally employed abroad in 2024, with Saudi Arabia being the largest labor market. Between September and December, worker recruitment surged, further fueling demand for flights and pushing ticket prices higher.

Aref also attributed the rising fares to several factors, including the imbalance between supply and demand, the limited capacity of domestic carriers, and delayed payments by foreign airlines. He urged the government to take immediate action to address these issues.

The ATAB press conference included several key demands:

  1. Increasing flight schedules and ensuring additional flight operations, along with fast-track approvals and open skies to encourage airline participation.
  2. Prohibiting ticket bookings without proper passenger details and halting seat-blocking practices.
  3. Releasing over 60,000 blocked seats to alleviate the shortage.
  4. Addressing the issue through the Ministry of Civil Aviation and Tourism without delay.
  5. Implementing fair pricing practices, including setting realistic fare ceilings and floors for different routes.
  6. Banning the sale of group tickets or tickets at private rates by airlines.
  7. Introducing standardized labour fares and limiting the number of tickets allocated to individual agencies to prevent syndicates.
  8. Ensuring transparency in ticket sales for workers and Umrah passengers, providing clear price details and agency information to prevent overcharging.
  9. Enforcing existing regulations under the Civil Aviation Act to ensure compliance.
  10. Introducing regulations specific to budget carriers, ensuring they meet fare transparency standards.
  11. Creating a task force comprising key stakeholders from various government bodies and ATAB to address these issues comprehensively.

The task force would be tasked with improving the efficiency of the aviation sector, resolving passenger complaints, and ensuring accountability across the industry.

Comments

Stocks Extend Decline as Trading Volume Reaches Record Low
7,964 of 18,000 Stranded Workers Chosen in First Batch for Malaysia Entry
Bangladesh's Forex Reserves Drop Back to $19 Billion
Bangladesh’s High Growth Under Ousted PM Hasina Was 'Fabricated,' Says Interim Chief Yunus
World Bank Reaffirms Commitment to Bangladesh's Interim Government

Bangladesh Travel Agents Call for Crackdown on Bulk Ticketing Practices

Express Report
  27 Jan 2025, 03:09

The Association of Travel Agents of Bangladesh (ATAB) has called for a reduction in air ticket prices and an immediate end to the sale and hoarding of bulk tickets that lack essential passenger details, 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 highlighted the issue, saying, “One of the most pressing concerns within Bangladesh's civil aviation sector is the significant 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."

ATAB President Abdus Salam Aref emphasized that ticket hoarding leads to the formation of syndicates, resulting in seat shortages and a price surge of 20 to 50 percent, and in some cases, ticket prices can even triple. This practice disproportionately impacts workers, students, and expatriates traveling abroad, causing significant financial strain.

He attributed the widespread use of this practice primarily to airlines servicing Middle East routes, which adopt the strategy of selling bulk tickets well in advance of flight dates to guarantee sales and maximize profits.

Aref pointed out that popular routes to Riyadh, Dammam, Jeddah, Oman, Doha, and Kuala Lumpur are being blocked, with airlines selling open group tickets without passenger details, such as names and identification numbers, particularly for Umrah pilgrims and overseas workers.

The practice has a ripple effect on international ticket prices, including routes to London, New York, and other destinations in Europe and the United States. Airlines on Middle East-bound routes create a market monopoly by selling bulk tickets through select agencies, further driving up prices.

Aref also highlighted that the reduction in the number of flights by airlines has worsened the price hike. Many airlines have stopped using their allotted flight slots, disrupting the balance of supply and demand by cutting flight frequencies. This has added to the increasing cost of tickets, exacerbating the burden on consumers.

The ATAB chief cited the lasting impact of the July-August movement, which significantly reduced both departure and arrival rates, leading airlines to scale back their flight schedules. As the situation normalizes, demand for flights has risen sharply, but the limited number of available flights has resulted in a severe shortage of seats.

He noted 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 reduced their operations to just 46 flights a week. This marks a reduction of 52 flights, and some carriers like Flynas have ceased five weekly flights altogether.

Additionally, Aref pointed out that airlines have shifted to smaller aircraft with a reduced passenger capacity, further contributing to the loss of seats and the price hike.

He also addressed the surge in labor transportation to Saudi Arabia, which has played a significant role in driving up airfare prices. According to BMET, over 1 million workers were legally employed abroad in 2024, with Saudi Arabia being the largest labor market. Between September and December, worker recruitment surged, further fueling demand for flights and pushing ticket prices higher.

Aref also attributed the rising fares to several factors, including the imbalance between supply and demand, the limited capacity of domestic carriers, and delayed payments by foreign airlines. He urged the government to take immediate action to address these issues.

The ATAB press conference included several key demands:

  1. Increasing flight schedules and ensuring additional flight operations, along with fast-track approvals and open skies to encourage airline participation.
  2. Prohibiting ticket bookings without proper passenger details and halting seat-blocking practices.
  3. Releasing over 60,000 blocked seats to alleviate the shortage.
  4. Addressing the issue through the Ministry of Civil Aviation and Tourism without delay.
  5. Implementing fair pricing practices, including setting realistic fare ceilings and floors for different routes.
  6. Banning the sale of group tickets or tickets at private rates by airlines.
  7. Introducing standardized labour fares and limiting the number of tickets allocated to individual agencies to prevent syndicates.
  8. Ensuring transparency in ticket sales for workers and Umrah passengers, providing clear price details and agency information to prevent overcharging.
  9. Enforcing existing regulations under the Civil Aviation Act to ensure compliance.
  10. Introducing regulations specific to budget carriers, ensuring they meet fare transparency standards.
  11. Creating a task force comprising key stakeholders from various government bodies and ATAB to address these issues comprehensively.

The task force would be tasked with improving the efficiency of the aviation sector, resolving passenger complaints, and ensuring accountability across the industry.

Comments

Stocks Extend Decline as Trading Volume Reaches Record Low
7,964 of 18,000 Stranded Workers Chosen in First Batch for Malaysia Entry
Bangladesh's Forex Reserves Drop Back to $19 Billion
Bangladesh’s High Growth Under Ousted PM Hasina Was 'Fabricated,' Says Interim Chief Yunus
World Bank Reaffirms Commitment to Bangladesh's Interim Government