Kumar Parajuli, Secretary General, SOTTO Nepal

Kathmandu, Ashoj — Nepali travel agencies certified by the International Air Transport Association (IATA) continue to face difficulties due to unequal treatment by airlines. Many airlines in Nepal have reportedly not provided IATA-accredited agencies with mandatory inventory and capping facilities, leading to growing complaints across the sector.

According to Kumar Parajuli, Secretary General of SOTTO Nepal, “Becoming an IATA agency signifies that an agency meets international standards, demonstrating capability and credibility. Denying such agencies access to inventory and capping facilities is a direct violation of fair business principles. Unfortunately, in Nepal, many airlines are offering these facilities only to a few ‘preferred’ agencies.”

“Injustice Despite Providing Bank Guarantees”

Parajuli further explained that many travel agencies, despite submitting the required bank guarantees, are unable to access capping and inventory facilities, putting their investments at risk.
“Airlines should provide equal facilities to all IATA-accredited agencies as per regulations. But currently, only a limited number of agencies are benefiting. This undermines a fair and competitive environment,” he said.

Restricted Access for Non-IATA Agencies, Market Imbalance

Currently, some airlines have blocked non-IATA agencies from accessing inventory, making it difficult for small and medium-sized travel companies to operate. “Smaller agencies are struggling to survive, while larger agencies are gaining an unfair advantage,” Parajuli added.

He warned that monopolistic tendencies in the market are increasing, directly affecting employment, price competition, and customer service. “The environment for affordable and quality service for customers is disappearing. Collusion between airlines and major agencies is weakening a free market system,” he said.

Travel Industry Under Pressure After Gen-Z Movement

The Secretary General also highlighted that the travel agency sector is among the most affected by the Gen-Z movement. Declining market demand, reduced ticket sales, and unequal airline practices have put small agencies under further stress.

“Many agencies have been forced to close offices, some have reduced staff, and others have halted international sales activities entirely,” he said.

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