SITO stands for Sold Inside Ticketed Outside, meaning the airline ticket is sold in the same country where the journey originates, but the ticket is issued in a different country.
Example Scenario:
A traveler in Mumbai books a Delhi–Dubai ticket through a local Indian agency, but the actual ticketing is done via their partner’s GDS office in Dubai due to better fares or currency advantages.
→ This becomes a SITO transaction.
Why SITO Happens
- The foreign office may have access to lower fares due to market-specific pricing
- Agencies operate via overseas ticketing hubs (e.g., UAE, Singapore, UK)
- To access promotional fares not available in the selling country
- Corporate/MNC travelers managed globally
Business Benefits
- Better margins due to favorable exchange rates
- Access to international consolidator fares
- Strategic advantage against local competition
- Ability to serve expat-heavy and corporate markets
Compliance & Risks
Because two jurisdictions are involved:
- Taxes must follow the ticketing country’s rules
- Refunds & ADM settlements go through the ticketing BSP
- Airlines may penalize misuse with financial penalties
Key Audit Flags
Airlines examine SITO bookings to protect pricing integrity:
- Wrong POS/POT data manipulation
- Circumventing local fare regulations
- Issuing tickets in a cheaper market intentionally
