BFTI hosts FGD on Bangladesh air ticketing market  

Bangladesh Foreign Trade Institute (BFTI), an autonomous research institute under the Ministry of Commerce, organised a focus group discussion (FGD) on a study titled “Competitive Landscape in Air Ticketing Market of Bangladesh” on May 20 at the institute’s conference room at TCB Bhaban in the capital.

The study, assigned to BFTI by the government and the Bangladesh Competition Commission, aims to analyse the competitive dynamics of Bangladesh’s air ticketing market and identify the risks of anti-competitive conduct and collusive behaviour. It also seeks to assess the market structure and concentration of the country’s aviation industry and recommend regulatory reforms to enhance competition, says a press release.

The session brought together representatives of leading airlines, general sales agents, travel agents and IATA, alongside other stakeholders from the aviation and travel industry. Senior officials from several government institutions, including the Ministry of Commerce, Civil Aviation Authority, Hazrat Shahjalal International Airport, Competition Commission and Directorate of National Consumer Rights Protection, were also present.

The discussion focused on 11 key areas — market competition dynamics, route-based competition, pricing behaviour and coordination, price adjustment strategy, key cost drivers, communication and incentive influence, agent pricing and markup practices, steering behaviour, market power and industry structure, barriers and future outlook, and policy recommendations. Participants deliberated on these issues and shared insights into the industry.

Airline representatives said flight frequency cannot always be adjusted despite fluctuating seasonal demand due to strategic considerations. During peak seasons, load factors on certain legs of round-trip flights to Bangladesh fall sharply, sometimes dropping below 5%, creating a severe directional imbalance.

Moreover, existing regulatory policies, higher charges and fuel prices, and limited airport facilities continue to drive up operational costs. These factors directly influence airfares and contribute to higher ticket prices throughout the year as operators try to offset additional expenses.

Travel agents noted that a lack of understanding of airlines’ dynamic pricing systems often creates misconceptions among passengers, many of whom tend to book tickets at the last moment and blame travel agents for higher fares. Meanwhile, unregistered travel agencies mislead customers with false information, further worsening the situation.

They also rejected allegations that travel agencies use GDS-based group bookings to charge passengers higher prices, saying such bookings are always made through airlines.

Government officials acknowledged the concerns raised by stakeholders and said efforts were already underway to implement necessary regulatory reforms.

The FGD also collected feedback on other relevant issues for the study. BFTI said it would continue engaging with participants for further consultation as the study progresses.