Navigating Turbulence: The Evolution of Airline Travel Agencies in Bangladesh amidst the COVID-19 Pandemic

Navigating Turbulence: The Evolution of Airline Travel Agencies in Bangladesh amidst the COVID-19 Pandemic

Anik Roy, Dr Qazi Moinuddin Mahmud*

Department of Management, University of Dhaka, Bangladesh

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90300074

Received: 20 February 2025; Accepted: 27 February 2025; Published: 31 March 2025

ABSTRACT

The airline travel agency sector in Bangladesh experienced significant disruptions due to the COVID-19 pandemic, which led to shifts in business operations, consumer behavior, and industry dynamics. This study made a comparative analysis of the operational strategies, financial performance, and market adaptation of airline travel agencies before and after the pandemic. Findings indicated that while pre-pandemic operations were largely dependent on traditional ticketing and in-person services, post-pandemic strategies emphasized online booking, flexible policies, and diversified revenue streams. The study highlighted resilience measures adopted by agencies, challenges faced during recovery, and the long-term implications for the travel industry in Bangladesh. The insights derived from the investigation provided valuable recommendations for future crisis preparedness and sustainable growth in the airline travel sector. The findings revealed that post-pandemic recovery was driven by digital transformation, the adoption of flexible travel policies, increased collaboration with airlines, and the integration of value-added services such as travel insurance and visa assistance. Despite signs of recovery, challenges such as fluctuating airfare prices, changing travel regulations, and evolving consumer behaviors continued to shape the industry. By analyzing these shifts, the study provided valuable insights into the resilience and adaptability of airline travel agencies in Bangladesh. It also offered recommendations for future crisis preparedness, digital innovation, and long-term sustainability in the travel sector. This research contributes to the broader understanding of how travel agencies could navigate disruptions and leverage emerging trends to enhance business continuity in a post-pandemic landscape.

Keywords: Airline Travel Agencies, Bangladesh, COVID-19, Business Operations, Digital Transformation, Travel Industry Recovery.

INTRODUCTION

The airline travel industry, a critical sector in the global economy, faced unprecedented challenges due to the COVID-19 pandemic. Airline travel agencies, as intermediaries between airlines and customers, experienced significant disruptions, which forced them to adapt rapidly. This report explored how these agencies operated before the pandemic, the immediate impact of COVID-19 on their business models, and the strategies they adopted to thrive in the post-pandemic era. In Bangladesh, the airline travel agency sector witnessed significant growth over the years, driven by increasing international travel, business expansion, and a growing middle class. However, the COVID-19 pandemic brought unprecedented disruptions to this industry, which led to massive revenue losses, workforce reductions, and shifts in operational strategies. Before the pandemic, travel agencies in Bangladesh thrived on a traditional business model that relied heavily on direct ticket sales, corporate partnerships, and walk-in customer services. Many agencies operated through physical offices, and online booking systems were still in their early stages. The demand for travel was on an upward trajectory, with increased outbound tourism, expatriate workers, and business travel fueling the sector.

However, with the onset of COVID-19, the global aviation industry came to a standstill due to travel restrictions, lockdowns, and health concerns. The post-pandemic landscape presented a different reality for airline travel agencies. The resurgence of travel was accompanied by significant changes in consumer behavior, technological advancements, and business model adaptations. Travel agencies had to embrace digital transformation, adopt flexible booking policies, and implement cost-cutting measures to survive and recover. The pandemic also accelerated the shift toward online travel agencies (OTAs) and direct airline bookings, which challenged the traditional brick-and-mortar business model. The airline travel industry in Bangladesh faced unprecedented disruptions due to the COVID-19 pandemic. Before the pandemic, airline travel agencies operated under stable market conditions, offering seamless services to travelers. However, the global health crisis led to strict travel restrictions, reduced flight operations, financial downturns, and shifts in consumer behavior. Many travel agencies struggled to survive, while others adapted through digital transformations and alternative business models. Despite the gradual recovery of the aviation sector, there remained a lack of comprehensive research on how airline travel agencies in Bangladesh adapted post-pandemic compared to their pre-pandemic operational strategies.

It was unclear to what extent these agencies had recovered, what new challenges they faced, and how their business models had evolved. Additionally, factors such as customer preferences, regulatory changes, and financial stability required further analysis to understand the long-term implications for the industry. This study aimed to bridge this knowledge gap by conducting a comparative analysis of the business operations of airline travel agencies in Bangladesh before and after the COVID-19 pandemic. The research explored the operational shifts, financial performance, service delivery changes, and strategic adaptations made by these agencies. By examining these aspects, the study provided valuable insights into the resilience and future sustainability of the airline travel agency sector in Bangladesh.

No such study had been conducted on this phenomenon in the context of Bangladesh. This was the first attempt in investigated the functional operations of business operations of airline travel agencies in Bangladesh before and after COVID-19, analyzing key changes, challenges, and recovery strategies.

LITERATURE REVIEW

According to scholarly findings, air transport had a considerable impact on spreading the pandemic worldwide (Wilder-Smith et al., 2003). In addition, several studies maintained that airline travel had the potential to affect the spread of many viruses, such as severe acute respiratory syndrome (SARS) (McLean et al., 2005), influenza (Grais et al., 2003), and Ebola (Bogoch et al., 2015). SARS infected 37 countries (8000 cases), whereas the Middle East respiratory syndrome infected as many as 27 countries (2494 cases) (Oztig and Askin, 2020). In these cases, the transmission deteriorated partly by those who took flights at the time of the case. Another investigation asserted that the avian flu (H5N1) outbreak spread to about 60 countries, killed nearly 191 people, and reduced around 12 million tourist arrivals within the Asia Pacific (Wilder-Smith, 2006).

The operations of airline travel agencies evolved significantly over the years, influenced by technological advancements, market dynamics, and global events. The COVID-19 pandemic, however, brought about an unprecedented disruption, compelling the industry to adapt rapidly. This literature review examined key themes in existing research to provide a foundation for analyzing the evolution of travel agency operations before and after the pandemic. Before the pandemic, airline travel agencies primarily operated through traditional and digital channels, focusing on booking services, itinerary management, and customer support. Studies highlighted the increasing use of online booking systems and global distribution systems (GDS) to streamline operations and enhance customer convenience (Buhalis & Law, 2008).

Customer loyalty programs and personalized service delivery were critical for retaining clients in a competitive environment (Dolnicar et al., 2016). The outbreak of COVID-19 in early 2020 resulted in a dramatic decline in global air travel, with airlines and travel agencies facing severe financial losses (IATA, 2020). Travel restrictions, border closures, and health concerns disrupted traditional operations. Research by Gössling et al. (2021) highlighted how the pandemic exposed vulnerabilities in the airline and tourism sectors, including over-reliance on physical interactions and limited digital preparedness. Travel agencies were forced to innovate to survive the pandemic’s challenges. Studies reported a shift towards digital transformation, with many agencies adopting artificial intelligence (AI)-driven chatbots, contactless booking systems, and flexible cancellation policies to meet evolving customer needs (Chang et al., 2021).

Additionally, there was a rise in demand for travel insurance and health-related travel guidance, which became integral to customer service (Huang et al., 2021). Post-pandemic travelers exhibited heightened safety concerns and a preference for flexibility. Research indicated an increased reliance on online platforms but also a renewed appreciation for personalized services that addressed specific concerns like travel safety and real-time updates (Amadeus, 2022). COVID-19 triggered broad sector challenges caused by border closures and restrictive measures as countries battled to contain and better prepare to deal with the pandemic’s fallout. Earlier assessments showed that the pandemic’s impact on the air transport and other sectors of the tourism industry was rapid and significant across the world (Dube et al., 2020; Gössling et al., 2020; Suau-Sanchez et al., 2020).

Before the COVID-19 pandemic, the airline travel agency industry in Bangladesh played a vital role in the country’s travel and tourism sector, catering to both domestic and international travelers. The industry witnessed steady growth due to increased air travel demand, economic development, and rising disposable income among the middle class. The business models of travel agencies varied, with traditional brick-and-mortar agencies remaining dominant, while online travel agencies (OTAs) such as GoZayaan and ShareTrip began reshaping the market through digital platforms and automation (Ahmed & Karim, 2018). Many agencies adopted a hybrid model, combining in-person and online services to cater to a diverse customer base. However, competition within the industry was intense, with over 3,000 registered travel agencies operating in the market, leading to price wars and heavy reliance on airline commissions for revenue generation (Bangladesh Travel Agents Association, 2019). Additionally, agencies provided value-added services such as visa processing, hotel bookings, and customized travel packages to remain competitive and sustain profitability.

Despite this growth, the industry faced multiple operational challenges, including a reduction in airline commissions, which forced agencies to explore alternative revenue streams (Rahman & Chowdhury, 2019). The increasing trend of airlines offering direct online booking systems also disrupted the traditional role of travel agencies, reducing their bargaining power and profitability. Regulatory barriers, such as complex licensing requirements and taxation policies, further hindered smooth business operations (Hossain, 2018). Moreover, cash flow issues were prevalent, with agencies struggling with delayed payments from corporate clients and customers. Technological a adoption in the sector was uneven; larger agencies integrated Global Distribution Systems (GDS) like Amadeus and Sabre to streamline ticketing and bookings, while smaller agencies often lagged due to limited financial and technological resources (Rahman, 2015). The growing influence of social media and digital marketing began shaping consumer behavior, with more travelers seeking online travel solutions. However, many traditional agencies hesitated to fully transition into digital platforms due to high initial investment costs and a lack of digital literacy.

The pre-pandemic period also highlighted shifting customer expectations, with travelers seeking convenience, competitive pricing, and personalized travel experiences. Brand loyalty and trust played a crucial role in sustaining businesses, as long-established agencies benefited from strong customer relationships, while newer online platforms attracted tech-savvy travelers with automation and seamless booking processes (Hossain, 2017). The industry’s future trajectory before COVID-19 pointed towards further digital transformation and an increasing role of online platforms. However, agencies that failed to adapt to technological advancements faced the risk of losing market share. Overall, the business operations of airline travel agencies in Bangladesh before the COVID-19 pandemic showcased a dynamic yet challenging landscape, where agencies had to continuously evolve to maintain competitiveness and profitability amid changing market conditions and technological disruptions. There was a general view that the pandemic had made various global economies reset, promoting a fresh start on a new sustainable, and more resilient trajectory (Ateljevic, 2020; Haywood, 2020; Brouder, 2020). Stakeholders believed the new economic future had to be responsive and aligned to the ideals sought by the SDGs coming out of the 2030 Agenda for Sustainable Development (United Nations, 2015) and the Sendai Framework for Disaster Risk Reduction (United Nations Office for Disaster Risk Reduction, 2015). Similar studies had recently utilized data from these sources (Nhamo et al., 2020a&b; Iacus et al., 2020; Maneenop and Kotcharin, 2020). Data from American Airlines and EUROCONTROL was also utilized to analyze daily traffic and revenue movement for the aviation sector in Europe.

Additional data was sought from Airlines for America. Secondary data in the form of reports from other regulatory authorities such as airport companies, IATA, CANSO, the International Civil Aviation Organization (ICAO) and other entities were also interrogated.  The aviation industry had moved forward in terms of having advanced computer models capable of simulating sophisticated patterns of epidemics and pandemics spreading through the airline transportation network across airports worldwide (Bobashev et al., 2008; Nicolaides et al., 2012).

After the COVID-19 pandemic, large airlines worldwide were in a miserable condition of bankruptcy and uncertainties because of the pandemic, as the restriction of social distance reduced the seating capacity of the entire global fleet of aircraft by 62 percent. Consequently, only four companies operated profitably following this condition, where the majority of airline companies faced negative profitability under the current price policy, even as most of the companies met the break-even point after selling 75% of tickets (Gole et al., 2021). Cancellation of flights was more than two million worldwide until 30 June 2020 (Deb & Nafi, 2020). Passengers’ health was important, but government and international health organizations had to impose flexible laws and regulations for the survival of the airline industry (Gole et al., 2021). The COVID-19 epidemic had an adverse impact on the travel agency business, which was one of the key subsectors of the tourism industry.

The impact of air travel on the spread of infectious diseases had been well-documented in prior research. Studies indicated that airline travel contributed significantly to the transmission of viruses such as SARS, influenza, and Ebola, emphasizing the role of global connectivity in accelerating outbreaks (McLean et al., 2005; Bogoch et al., 2015). The rapid movement of people across borders facilitated the dissemination of pathogens, making air transport a critical factor in pandemic spread (Oztig & Askin, 2020). The avian flu (H5N1) outbreak, for instance, led to substantial economic and travel disruptions, including a significant reduction in tourist arrivals (Wilder-Smith, 2006). Before the COVID-19 pandemic, airline travel agencies operated in a competitive landscape characterized by increasing digitalization, evolving consumer expectations, and market expansion. The rise of online booking systems and global distribution systems (GDS) improved operational efficiency and customer convenience (Buhalis & Law, 2008). Traditional agencies relied on personalized services and loyalty programs to maintain market share, while online travel agencies (OTAs) such as GoZayaan and ShareTrip introduced automation and digital platforms to reshape the industry (Ahmed & Karim, 2018). However, declining airline commissions and the growing trend of direct airline bookings posed challenges to traditional agency models, necessitating diversification strategies such as value-added services (Rahman & Chowdhury, 2019).

METHODOLOGY

This study employed a comparative analysis approach to investigate the business operations of airline travel agencies in Bangladesh before and after the Covid-19 pandemic, using secondary data collection methods. The research focused on analyzing existing datasets, reports, publications, and documents relevant to the airline industry in Bangladesh during the pre- and post-pandemic periods. Secondary data were collected from various sources, including industry reports and publications from government agencies (e.g., Ministry of Civil Aviation and Tourism), international organizations (e.g., IATA), and consultancy firms. Additionally, pre- and post-pandemic financial statements, annual reports, and market studies from airlines and travel agencies were examined. Academic articles and peer-reviewed journals exploring the impacts of Covid-19 on the airline industry in Bangladesh and globally were also reviewed, alongside government policy documents related to travel and aviation regulations during the pandemic. Official statements and publications from the Bangladeshi government regarding pandemic-related restrictions, policies, and support programs impacting the travel and tourism sector were analyzed. Travel and aviation policy shifts that occurred during and after the pandemic, focusing on recovery strategies, safety measures, and operational guidelines for the airline industry, were considered. Furthermore, media reports and news articles detailing the effects of the pandemic on the travel industry, as well as statistical data such as passenger traffic and financial performance trends, were reviewed to assess the changes in airline agency operations.

The data analysis was conducted through quantitative methods. Quantitative analysis involved statistical comparisons of financial performance and passenger traffic trends pre- and post-pandemic. Ethical considerations were ensured by using publicly available data and properly citing all sources of secondary information. The study’s limitations included the potential scarcity of comprehensive post-pandemic data and possible inconsistencies across data sources. However, this research aimed to provide valuable insights into how airline agencies in Bangladesh adapted their operations in response to the Covid-19 pandemic, offering recommendations for future recovery strategies and policy directions within the industry.

It’s a comparative analysis approach to examine the business operations of airline travel agencies in Bangladesh before and after the Covid-19 pandemic using secondary data. Data were collected from industry reports, government publications, financial statements, annual reports, consultancy studies, academic literature, and media sources. Statistical data, such as passenger traffic and financial performance trends, were also analyzed. The research utilized quantitative methods, including financial performance comparisons, passenger traffic trend analysis, and policy impact assessments. Ethical considerations were ensured by using publicly available data with proper citations. The study faced limitations due to the scarcity of post-pandemic data and inconsistencies across sources. Despite these challenges, the findings provided insights into how airline agencies adapted to the pandemic and offered recommendations for industry recovery and policy development.

RESULTS AND DISCUSSION

The whole aviation industry was affected by COVID-19. The change in the behavior of passengers following the COVID-19 crisis and travel restrictions resulted in a dramatic drop in demand for airline services. The cost of health-related measures and operating costs likely increased in the short run for both airlines and airports because of additional health and safety requirements (e.g., disinfection, PPE, temperature checks, or viral tests) before they could be passed on to consumers. Moreover, social distancing measures (if implemented for air transport) could have forced a reduction in the passenger load factor (i.e., the number of seats that could be occupied during a flight) by up to 50% (OECD, 2020).

Both the airlines and passengers were affected by the pandemic policies, which were obviously different among countries. For example, some countries had almost full control of the pandemic and tried to contain the virus at a relatively early stage. In many other countries, the target was to “flatten the curve,” so that the outbreak was contained at a level that the healthcare system could handle while essential economic activities could be restored early. As a result, the aviation industry focused on preventing infection at airports and on-board aircraft, with capacity and flight frequency “reactively” adjusted in response to travel demands (Czerny et al., 2021).

After an investigation of the response of 24 airlines to the outbreak of COVID-19, a conclusion could be reached that airlines’ responses to the outbreak of COVID-19 could be broadly classified into three categories according to their purpose: to reduce the operation cost, to ensure the safety and interests of the passengers, and to improve the income and cash of the company. Table 1 summarized the different responses of airlines to the COVID-19 pandemic by classifying airline responses into 9 categories. In the table, if a response had been taken to a particular category, it was referred to as “Y,” or else it was left blank. According to Table 1, it was concluded that reducing flights was a measure taken by all airlines to reduce operating costs. This was arguably what airlines were forced to do because of a sharp drop in passenger travel demand during the outbreak. Most of the airlines in the survey had reduced the salary of their employees or furloughed their workers to reduce labor costs. By contrast, fewer airlines laid off workers. In fact, most airlines reduced their staff numbers by taking many measures, including laying off.

As a result, the number of staff of almost all airlines worldwide decreased. Many employees were retrained, which was possible because many airlines believed the outbreak of the COVID-19 pandemic would have a limited impact on the aviation market after the end of the epidemic, and cutting too many jobs was not suitable for their future growth. Among the airlines surveyed, many in Europe and the Americas opted to retire aircraft early to save operating costs. By contrast, few of the airlines in East Asia took the step of decommissioning their aircraft. Many airlines’ annual reports showed that they did not stop buying planes during the COVID-19 outbreak.

Before the pandemic, airline travel agencies in Bangladesh experienced steady growth due to increased international and domestic travel. The rising middle class, greater access to online booking systems, and competitive pricing strategies contributed to a thriving industry. Agencies operated through a mix of online and offline channels, with a significant proportion of customers still relying on in-person bookings. However, the COVID-19 pandemic led to an abrupt halt in international travel, severely affecting revenue streams. Industry reports indicated that revenue declined by approximately 60–80% during the peak of the crisis (2020). The ban on international flights, lockdowns, and travel restrictions resulted in mass cancellations, leading to an unprecedented financial downturn. Agencies had to refund ticket fares, compounding financial losses.

A significant shift in customer behavior was observed post-pandemic. Before COVID-19, many travelers relied on traditional travel agencies for booking tickets, obtaining visa assistance, and travel insurance. However, with the pandemic accelerating digital transformation, customers increasingly turned to online booking platforms. The rise of direct airline bookings through mobile apps and websites posed a challenge for traditional agencies. Additionally, health and safety concerns led to a growing demand for flexible booking policies. Travelers preferred agencies that offered refunds, rescheduling options, and comprehensive travel insurance. Agencies that failed to adapt to these new expectations saw slower recovery rates. Before the pandemic, digital adoption among Bangladeshi travel agencies was moderate, with many still relying on manual booking systems. While some agencies had online booking options, most transactions were handled in person or via phone.

The post-pandemic era necessitated rapid digital transformation. Agencies integrated AI-based chatbots, automated booking systems, and mobile apps to enhance customer experience. The use of Customer Relationship Management (CRM) tools increased, allowing businesses to personalize services and improve engagement. The travel industry suffered massive job losses during the pandemic, with many agencies forced to lay off employees due to financial constraints. Before COVID-19, the sector employed a large workforce, including ticketing officers, customer service representatives, and tour planners. However, between 2020 and 2021, an estimated 50–70% of travel agency employees in Bangladesh lost their jobs.

Post-pandemic, as the industry recovered, agencies prioritized rehiring and training employees in digital platforms and customer service adaptation. The demand for digital marketing professionals also increased as agencies focused on online engagement. However, overall employment levels remained lower than pre-pandemic levels due to automation and cost-cutting measures.

During the pandemic, the Bangladesh government introduced stimulus packages to support affected industries, including travel agencies. However, many small and medium-sized agencies struggled to access these funds due to bureaucratic hurdles. The lack of financial assistance led to the permanent closure of some agencies. Post-pandemic, regulatory changes were introduced to ensure smoother international travel, such as digital vaccine passports and revised visa policies. Agencies that adapted to these new regulations quickly gained a competitive edge.

The comparative analysis of airline travel agencies in Bangladesh before and after the COVID-19 pandemic highlighted significant transformations in business operations. The industry experienced severe financial setbacks during the crisis but emerged with stronger digital capabilities and diversified revenue streams. The pandemic accelerated the shift toward digitalization, forcing agencies to adopt new technologies and customer-centric strategies. Despite challenges, agencies that adapted to changing customer preferences, embraced digital transformation, and diversified their service offerings recovered more effectively. Moving forward, the long-term sustainability of travel agencies depended on continued innovation, strategic partnerships, and responsiveness to global travel trends.

The study conducted a comparative analysis of the business operations of airline travel agencies in Bangladesh before and after the COVID-19 pandemic, revealing significant shifts in revenue, customer behavior, operational strategies, and technological adoption. Pre-pandemic, agencies experienced steady revenue growth driven by robust domestic and international travel demand, with a focus on convenience, competitive pricing, and personalized services. However, the pandemic caused a drastic decline in revenue, with losses of up to 70-80% during the peak of the crisis due to international travel restrictions and lockdowns. Post-pandemic, customer behavior shifted significantly, with health and safety concerns taking precedence, leading to a preference for online bookings, contactless transactions, and flexible booking policies. Operationally, agencies adopted cost-cutting measures, diversified into cargo handling and charter flights, and formed partnerships with health organizations to promote safe travel. The pandemic also an accelerated digital transformation, with agencies investing in user-friendly websites, mobile apps, and data analytics to understand customer preferences and predict travel trends. The findings underscored the resilience and adaptability of travel agencies, highlighting the importance of agility, innovation, and digital literacy in navigating future uncertainties. The study emphasized the need for supportive government policies, industry collaboration, and continued prioritization of customer needs to ensure a sustainable recovery and long-term growth for the sector in the post-pandemic era.

The COVID-19 pandemic caused an unprecedented disruption, severely affecting the global aviation industry. Studies highlighted the vulnerabilities of airline and travel agencies, including over-reliance on physical transactions and inadequate digital preparedness (Gössling et al., 2021). Travel bans, border closures, and health concerns led to an estimated revenue decline of 60-80% for travel agencies, with widespread cancellations compounding financial losses (IATA, 2020). The pandemic accelerated digital transformation, prompting agencies to integrate AI-powered chatbots, contactless booking systems, and flexible policies to meet evolving consumer demands (Chang et al., 2021). Additionally, there was a notable shift in traveler priorities, with heightened concerns about health safety, insurance, and real-time travel updates becoming crucial decision-making factors (Huang et al., 2021). In Bangladesh, the airline travel agency sector, which had experienced steady growth due to rising disposable incomes and increased travel demand, faced severe setbacks during the pandemic. The dominance of traditional brick-and-mortar agencies was challenged by the rapid shift to digital channels. The pandemic underscored the need for technological adaptation, compelling agencies to invest in automation, customer relationship management (CRM) tools, and digital marketing to remain competitive. However, financial constraints, regulatory hurdles, and the slow adoption of digital tools by smaller agencies hindered seamless transformation (Hossain, 2018). The discussion of findings revealed a stark contrast in operational strategies before and after the pandemic. The pre-pandemic industry thrived on face-to-face interactions, while the post-pandemic period witnessed a surge in online transactions, reflecting a consumer-driven shift toward convenience and flexibility. Agencies that embraced digital transformation, expanded service portfolios, and adapted to regulatory changes recovered more effectively. The financial downturn led to significant job losses, but post-pandemic recovery efforts prioritized rehiring, digital skill development, and strategic partnerships (Dube et al., 2020). Globally, the aviation sector faced prolonged financial distress, with airlines implementing cost-cutting measures such as salary reductions, layoffs, and early aircraft retirements to sustain operations (Czerny et al., 2021). The long-term recovery of the industry depended on supportive government policies, enhanced digital infrastructure, and customer-centric innovations. In Bangladesh, access to stimulus packages remained limited for small and medium-sized agencies, underscoring the need for regulatory reforms to facilitate financial assistance and industry resilience. In conclusion, the comparative analysis of airline travel agencies before and after COVID-19 highlighted the necessity of digital adaptation, strategic diversification, and customer trust in ensuring industry sustainability. The findings emphasized the role of technological innovation, policy support, and market responsiveness in shaping the future trajectory of travel agencies in Bangladesh and beyond. Moving forward, agencies must have prioritized agility and collaboration to navigate future uncertainties and foster long-term growth in an evolving global travel landscape.

CONCLUSION

By exploring the evolution of airline travel agencies’ operations, this report aimed to contribute to the body of knowledge on crisis management in the travel industry. It offered actionable insights to help agencies remain competitive and resilient in a rapidly changing world. The literature revealed that the COVID-19 pandemic served as a catalyst for change, accelerating digitalization and altering consumer expectations in the airline travel agency sector. While the challenges were immense, the adaptations observed underscored the industry’s capacity for resilience and innovation. This review provided a solid foundation for further investigation into how these transformations reshaped operations and what lessons could be drawn for the future. This research explored airlines’ responses and customer satisfaction in the aviation industry during the COVID-19 pandemic by collecting and analyzing the organization-level responses adopted by airlines and analyzing passengers’ satisfaction with individual-level responses during flights. The study classified organization-level responses into three categories: reducing the operation cost, ensuring the safety and interests of the passengers, and increasing the revenue and cash flow. It was found that all airlines took “reduce the operation cost” responses, such as cutting flights and reducing employees’ salaries, while few airlines adopted responses to increase the revenue and cash flow of the company. Importantly, airlines in different areas adopted considerably different responses. Airlines in developed countries usually received financial support, while many airlines failed to be assisted by governments. Besides, in Asia, where production recovered rapidly, airlines adopted some responses to increase revenue and cash flow, such as adding cargo flights. However, airlines could not adopt such responses in other areas where COVID-19 was still severe. As for responses to ensure the safety and interests of the passengers, all airlines took measures that substantially depended on local government policies. This study significantly contributes to the understanding of the changes in business operations of airline travel agencies in Bangladesh, specifically in the context of the pre-and post-COVID-19 periods. It highlights the resilience and adaptation strategies adopted by agencies to cope with the pandemic’s challenges, offering valuable insights for stakeholders in the aviation sector. However, the research is limited by the availability of data, as some agencies were unable or unwilling to share in-depth operational insights, and the analysis is based on a limited timeframe. Future research can expand by examining the long-term impacts of the pandemic on the airline industry, including technological advancements, customer behavior shifts, and the financial recovery process.

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