Mid-sized aviation market in country records TK 13,629 crore in travel agent sales through October 2025 with 45 participating airlines, showing 6.66% growth despite currency volatility

Travel agent sales through IATA's Billing and Settlement Plan in Bangladesh reached TK 13,629 crore during January to October 2025, marking 6.66%  year-on-year growth despite challenging market conditions.

Latest IATA-linked Travel Agency Association BSP report reveals number of participating airlines increased to 45 in 2025, up from 42 last year, indicating growing airline interest in Bangladesh market despite operational challenges.

Total gross sales in US dollar terms stood at USD 111 crore 70 lakh during January to October period, virtually unchanged from USD 111 crore 80 lakh recorded in same period of 2024. Marginal 0.04% decline in dollar value contrasts sharply with robust local currency growth, reflecting impact of taka depreciation against US dollar.

Bangladesh accounted for 2.34%  of Asia-Pacific BSP gross sales by value and 2.95% of total regional transactions. Market processed 36 lakh 70 thousand transactions year-to-date, down 1.51% from 2024, suggesting higher average ticket values and fewer overall bookings.

Market experienced sharp monthly fluctuations throughout year. First half showed weakness, with April posting sharpest decline of 26.8% in US dollar terms and 18.81% in local currency compared to 2024.

Strong rebound occurred from June onward during peak summer travel months. August emerged as strongest month, generating USD 14 crore 90 lakh in gross sales, up more than USD 5 crore 40 lakh compared to same month in 2024. July, August and September recorded year-on-year growth of 35%, 57% and 39.5% respectively in dollar terms.

Growth was driven by outbound leisure travel, migrant traffic and pent-up demand. October also closed marginally higher year-on-year, suggesting demand stabilisation heading into final quarter.

Industry observers attribute uneven performance to visa constraints, airfare volatility, capacity adjustments by airlines and changing travel patterns among Bangladeshi passengers.

Electronic ticketing dominated market, accounting for more than 87% of all transactions. Refund transactions fell by over 8%, while cancelled documents dropped by more than 6%, indicating improved travel confidence and fewer disruptions compared to previous years.

Bangladesh remains one of most cash-dependent BSP markets globally, with nearly 100% of transactions settled in cash. This reflects regulatory constraints and financial structure of local travel trade, where access to international credit remains limited.

Number of BSP head entities stood at 1,440, unchanged from previous year. Total number of IATA-accredited agents in Bangladesh was 1,444, representing 13.18% of all BSP agents in Asia-Pacific region.

Industry executive familiar with BSP data said Bangladesh remains fundamentally demand-driven with strong outbound flows for labour, education and visiting friends and relatives.

"However, growth is increasingly shaped by pricing, currency volatility and airline capacity decisions," executive added.

Modest decline in transaction volumes coupled with higher sales values in local currency suggests affordability remains concern for travellers, while airlines and agents continue navigating cost pressures.

Analysts say data points to market holding its ground rather than expanding aggressively. As airlines recalibrate networks and government focuses on infrastructure and policy reforms, stakeholders expect final quarter of 2025 to be crucial in determining whether market can convert late-summer rebound into sustained year-end growth.