Government to Shut Down Hundreds of Illegal Travel Agencies in Crackdown

In a special notice issued on Tuesday, March 31, 2026, the Ministry warned that hundreds of agencies face permanent closure and legal action if they fail to renew their certificates through the government’s online portal within the next 15 working days.

The government emphasized that the widespread operation of unregistered agencies is causing significant revenue losses and compromising passenger safety.

Mandatory Renewal: Agencies must use the Online Travel Agency Management System to submit their renewal applications immediately.

The 2026 Ordinance: This move follows the Travel Agency (Registration and Control) Ordinance, 2026, which recently amended the 2013 Act to introduce stricter oversight for both offline and online travel agencies (OTAs).

Under the newly promulgated rules, operating a travel agency without a valid certificate is a punishable offense. The Ministry has significantly strengthened the penalty framework to deter fraud and syndication:

Stricter Fines: Violators can face up to one year of imprisonment, a fine of up to 1 million BDT, or both.

Bank Guarantees: The new regulations require online agencies to maintain a bank guarantee of 10 million BDT, while offline agencies must provide 1 million BDT to ensure financial accountability.

Prohibited Acts: The law now explicitly bans "fake bookings," illegal sharing of airline login credentials, and misleading advertisements—practices that have frequently harassed migrant workers and general travelers.

The Ministry’s directive is part of a broader effort to restore discipline in the aviation sector. By enforcing the registration of all operators, the government aims to eliminate "ghost agencies" that often defraud customers through untraceable transactions. Travel leaders have been urged to ensure all member agencies comply with the UBO (Ultimate Beneficial Ownership) disclosure requirements to ensure transparency in ownership.

The crackdown is particularly focused on protecting expatriate workers, who are often the primary victims of overcharging and fraudulent ticketing by unauthorized sub-agents. The Ministry stated that only agencies sourced directly from authorized airline systems (GDS/NDC) will be allowed to operate, effectively ending the unregulated sub-agent model that has dominated the market.