Establishing a Travel Agency in Bangladesh

Md. Joynal Abdin
Founder & Chief Executive Officer, Trade & Investment Bangladesh (T&IB)
Executive Director, Online Training Academy (OTA)
Secretary General, Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)

Starting a travel agency in Bangladesh (offering domestic and international services) involves several steps: choosing a legal form, registering the business, obtaining tourism licenses, budgeting for startup costs, marketing your services, and building industry partnerships. Below is a detailed guide with each step and key considerations (with Bangladeshi regulatory context).

1. Legal Structure & Registration

Choose a business form. You can operate as a Sole Proprietorship, Partnership, or Private Limited Company. A sole proprietorship (one owner) is simplest but offers no liability protection[1]. A partnership (2–20 partners under the Partnership Act 1932) shares liabilities between partners[2]. A private limited company (under the Companies Act 1994) is a separate legal entity with limited liability[3]. In practice, many agencies register as private limited companies for credibility and growth potential.
Reserve and register your name. Pick a unique company/firm name and reserve it with the Registrar of Joint Stock Companies & Firms (RJSC)[4]. Prepare the required documents (e.g. Memorandum & Articles of Association for a company, or a partnership deed) and file with RJSC. Company registration fees are roughly BDT 15,000–25,000[5].
Local permits. Obtain a Trade License from the City Corporation or Upazila Parishad where you operate (this license authorizes commercial activity). Fees vary by location (e.g. ~BDT 2,000–5,000 as a typical range[5]). Also register for a Tax Identification Number (TIN) with the National Board of Revenue, and for VAT if your annual turnover exceeds the VAT threshold. These are mandatory for any business.

2. Licensing and Permits

Travel Agency License (MoCAT/CAAB). You must register as a travel agency under the Bangladesh Travel Agency (Registration & Control) Act, 2013. The Ministry of Civil Aviation and Tourism (often via the Civil Aviation Authority of Bangladesh, CAAB) issues a Travel Agency Registration Certificate valid for 3 years[6]. This requires submitting an application form with your corporate documents, a bank solvency certificate, office lease agreement, etc., and passing an office inspection. For example, the official registration form cites Section 5 of the Act and confirms a 3-year registration period[6].
Tour Operator Registration (BTB). If you plan to organize tour packages (especially inbound tours), you must register with the Bangladesh Tourism Board (BTB). New “Tour Operator” rules (2024) make registration mandatory for any tour operator, requiring proof of address, and showing a bank balance (e.g. a certificate of Tk 10 lakh) to qualify[7][8]. In practice this means a minimum initial capital (tour operator rules recently cited Tk 10 lakh plus a security deposit)[8].
Other certifications: Join the Association of Travel Agents of Bangladesh (ATAB). While not legally required, ATAB membership is highly recommended for networking and credibility[9]. For international ticketing, consider IATA accreditation and access to global reservation systems (GDS) – for example, Biman Bangladesh Airlines now distributes its fares through Sabre/Amadeus to travel agents[10]. Finally, keep copies of all licenses and permits visible in your office as required by law (e.g. license certificate displayed on-site).

3. Startup Costs (Capital Requirements)

Launching a travel agency requires capital for licenses, office setup, technology, and operations. Key cost items include:
– Government & registration fees: The travel agency license fees are roughly BDT 30,000–40,000 in total (application plus final license fee, including VAT)[11]. Company formation with RJSC costs ~BDT 15,000–25,000[5]. A local trade license adds a few thousand taka[5]. In addition, new rules require maintaining a minimum bank solvency, typically BDT 500,000 (Tk 5 lakh)[5]. (Recent press reports indicate tour operator rules may raise this to Tk 10 lakh[8].)
– Office and equipment: Lease office space in a commercial area (inspectors expect ≥200 sq. ft.[12]). Rent deposits (often 3–6 months’ rent) and furnishing (desks, chairs, signage) can total a few hundred thousand taka. Also budget for computers, printers, telephones, internet setup, etc. A rough estimate might be Tk 150k–250k for basic office setup.
– Staff and operations: Plan salaries for travel consultants and support staff. In Dhaka, a junior travel agent might earn Tk 15k–25k/month. For 2–3 staff, include several months of payroll in your budget (e.g. Tk 60k–75k/month in total). Don’t forget costs like utilities, office consumables, and a small reserve for contingencies.
– Technology: Develop a professional website (domain, hosting, development). A simple travel-booking website with WordPress (using a plugin like WP Travel) may cost Tk 50k–100k[13]. Invest in a travel-management or CRM system: e.g. a cloud-based agency platform or general CRM (like Zoho or Salesforce) to track leads/bookings. Also include integration of online payment gateways (credit card, bKash, etc.). These tools help automate bookings and customer service[14].
– Marketing budget: Allocate funds for initial promotion. Even minimal online advertising (Facebook/Google) and print brochures can run Tk 20k–50k. The total startup capital should realistically be in the order of a few million Taka (perhaps USD 10–20k) to cover all these expenses comfortably. For example, having Tk 5 lakh bank balance (mandatory) plus ~Tk 3–5 lakh for office setup and ~Tk 2 lakh for registrations/licensing is common.

Establishing a Travel Agency in Bangladesh

4. Marketing Strategies

An effective marketing mix will bring clients to your agency:

Digital (Online) Marketing: Build a professional, SEO-optimized website focused on travel services. Use relevant keywords (e.g. “best travel agency in Bangladesh”) to rank in searches[15]. Maintain a travel blog and post high-quality photos or virtual tours of destinations[16]. Leverage social media heavily: Facebook and Instagram pages for posting travel deals and customer testimonials; run contests or promotions; use TikTok/YouTube to share short videos of Bangladeshi attractions[17]. Deploy pay-per-click ads on Google or social platforms to target potential travelers (e.g. diaspora audiences looking for Bangladesh tours). Collect email addresses and send newsletters with seasonal deals or group travel packages (email marketing is highly effective for repeat bookings).[18]
Traditional (Offline) Marketing: Participate in tourism fairs and expos (e.g. the annual Bangladesh Travel & Tourism Fair in Dhaka) to network with industry and publicize your services. Advertise in local newspapers or travel magazines (e.g. The Daily Star travel insert) and on radio/TV if budget permits. Distribute brochures and flyers in high-traffic areas (universities, shopping malls, airports) and at partner hotels. Offer corporate deals or student group packages to large organizations and educational institutions. Provide printed information and branded merchandise (pens, calendars) to clients. Encourage word-of-mouth by running a referral program (e.g. small discount for customers who refer friends).

Combining online and offline channels will maximize your reach: for instance, run a social media campaign alongside placing an ad in a local travel guide. Use analytics (website and social media metrics) to refine which channels yield the best response.

5. Industry Partnerships

Building partnerships is crucial for inventory, credibility, and wider exposure:

Airlines: Arrange an IATA/GDS partnership to sell flight tickets. With IATA accreditation and Global Distribution System access (e.g. Sabre, Amadeus), you can issue international and domestic airline tickets directly. (Bangladesh’s flag carrier Biman now uses Sabre to distribute fares to travel agents[10], so having GDS access lets you tap into such fares.) Even without full IATA membership, you can become a BSP (Billing and Settlement Plan) agent for airlines, or work through IATA-accredited partners.
Hotels and Lodging: Negotiate commissionable rates with hotels and resorts in key destinations. Many international booking sites (Booking.com, Agoda, Airbnb) allow agencies to list services on their platforms or use APIs. Partner with local hotel associations (e.g. the Bangladesh International Hotel Association) for leads. Selling packaged deals (flight+hotel) can boost profit margins.
Tour Operators: Collaborate with established tour operators for group tours. For outbound packages, you might work with overseas tour companies; for inbound packages (bringing foreigners to Bangladesh), partner with local tour operators. Joining the Tour Operators Association of Bangladesh (TOAB) can provide networking for joint ventures.
Online Platforms: List your travel packages on online travel agencies (OTAs) and travel portals (e.g. Cleartrip, Expedia, local OTAs). This exposes your offers to a larger audience. Conversely, you can use XML/API feeds from airlines and hotels via GDS or channel managers to aggregate inventory.
Associations and Networking: As noted, ATAB membership is recommended[9]. ATAB and similar associations (e.g. Bangladesh Association of International Tour Operators – BAITO) organize events and help lobby for industry interests. Through these, you can meet airline reps, hoteliers, and other agents. Also, consider international affiliations (e.g. PATA or regional travel bodies) which can boost credibility with overseas clients.

Establishing good partnerships not only supplies products (flights, rooms, tours) to sell, but also increases your agency’s legitimacy to customers.

6. Operations: Office and Online Setup

Physical Office: You must maintain a professional office. Regulators expect a signboard and visible credentials[12]. Ensure your office is at least ~200 sq. ft., with a reception and workspace[12]. Furnish it with desks, chairs, computers and phones. Display your Trade License and TIN certificates prominently as evidence of legality[19]. A comfortable waiting area for clients (with brochures and destination posters) is helpful.
Online Presence: Develop a responsive website that highlights your services (domestic tours, international flights, etc.) with quality images and itineraries. Use a travel-booking software or WordPress plugin (e.g. WP Travel) to allow clients to view and book tours online[13]. Ensure the website is mobile-friendly and linked to your social media pages. Include online chat support or quick inquiry forms for immediate customer engagement.
Booking & CRM Tools: Invest in travel-management software. If selling flights, set up GDS (Sabre/Amadeus) for ticketing. For tour bookings, use a tour operator software (e.g. Rezdy, Tourplan, or open-source options) to manage packages and bookings. Implement a CRM system to track inquiries, clients, and sales. Use secure online payment gateways (local options like bKash/Rocket and international credit-card processors) to accept payments. (The WP guide advises equipping your team with “powerful travel management software and secure payment gateways”[14].)
Communications: Provide multiple contact channels: a dedicated phone line, a business email, and social media messaging (e.g. WhatsApp Business). Respond promptly to inquiries. Maintaining an online booking engine and CRM will streamline handling domestic and international bookings, while your offline office can handle in-person consults.

By following these steps complying with Bangladesh’s registration and licensing rules, planning your budget carefully, marketing across channels, and partnering widely—you can launch a travel agency that legally and effectively serves customers at home and abroad.

Sources: Official and industry guidelines, including the Bangladesh Ministry of Civil Aviation & Tourism and Tourism Board, as well as industry publications and news reports[6][8][11][20][15][17][10]. These outline the legal framework and practical steps detailed above.

[1] [2] [3] Business Formation in Bangladesh: Proprietorship vs Partnership vs Company – Barrister Shyikh Mahdi

https://skmahdi.com/2023/01/business-formation-in-bangladesh-proprietorship-vs-partnership-vs-company/

[4] [13] [14] How to Start a Travel Agency Business in Bangladesh?

https://wptravel.io/how-to-start-a-travel-agency-business-in-bangladesh/

[5] [9] [11] [12] [19] [20] Tour and Travel Agency License in Bangladesh – Complete Guide

https://fastglobalservice.com/the-tour-and-travel-agency-license-in-bangladesh/

[6] Travel Agency Registration Certificate: Ministry of Civil Aviation and Tourism | PDF

https://www.scribd.com/document/788575464/5dc5b908-713d-4045-a9a2-a9fba94e5fbf-1

[7] New Rules for Tour Operators and Guides in Bangladesh | Registration mandatory for tour operators and guides | The Daily Star

https://www.thedailystar.net/business/news/registration-mandatory-tour-operators-and-guides-3579891

[8] Tourism entrepreneurs call for industry-friendly policy reforms | The Business Standard

https://www.tbsnews.net/bangladesh/tourism-entrepreneurs-call-industry-friendly-policy-reforms-951296