New Report: Why Travel Advisors Are More Relevant Than Ever

As travel demand continues to rise post-pandemic, the role of travel advisors is evolving due to emerging technological innovations and shifting traveler expectations. Voyagu’s latest report provides valuable insights into current travel advisor sentiment, highlighting the key challenges and opportunities that lie ahead.

With the growing popularity of online booking tools and direct-to-consumer travel options, some may question the relevance of travel advisors. Yet a recent study by Travel Daily News found that more than a third of affluent U.S. travelers prefer utilizing advisor services when flying internationally. With travel demand resurging post-pandemic, travel advisors have become more important than ever in helping people navigate the complexities of international tourism.

“Despite their value, travel advisors face significant challenges in competing with the affordability and convenience offered by technology companies. However, there are signs of a gradual acceptance of this transformative shift, as agents are starting to recognize the potential of merging human capabilities with technology. Implementing technological tools can help travel advisors enhance the human touch where it matters the most, and with its help, be more fluent at developing a niche market that is capable and willing to pay for their services,” said Ivan Saprov, founder and CEO of Voyagu.

The pandemic has reshaped the way people approach trip planning. With travel becoming increasingly commoditized, people are looking for more than just a booking engine — they want personalized, curated experiences that reflect their unique interests. This shift has created new opportunities for travel advisors. By leveraging technological innovations to provide hands-on trip-planning services and comprehensive support, advisors can offer a new level of service that goes beyond simply booking a trip. Looking at these trends, it’s clear that the relationship between travel advisors and their clients has changed, but how exactly has this dynamic evolved?

A new Voyagu survey of U.S.-based travel advisors sheds light on how digitization in the post-pandemic era has impacted the travel industry and changed how travel advisors interact with their clients. From navigating new regulations to embracing emerging technologies, travel advisors have had to adapt to new realities and offer innovative solutions to meet client needs.

“Travel advisors acknowledge the necessity to demonstrate their relevance and competence in an industry undergoing rapid change. Our research highlights a growing trend among advisors to embrace technology, with 69 percent acknowledging its potential positive impact, while 53 percent see it as a potential driver for increased revenues. We delve into the ways advisors are adapting and striving to remain relevant, shedding light on their efforts to meet the evolving needs of travelers,” said Saprov.

This report from Voyagu offers a detailed analysis of the condition of the travel advisory sector before and after the pandemic, providing a window of understanding into the current state of the industry and the challenges that travel advisors are facing. It provides decision-makers with actionable insights and data-driven analysis to support them in their process of improving the productivity and competitiveness of their travel advisory business. It also offers industry players the relevant information to support and invest in the necessary tools so that they can drive up their income while simplifying and reducing their workload.

The findings in the report will be helpful for key stakeholders in the travel sector to identify mechanisms through which they can build strategic partnerships and provide solid value to their customers.

Download the Full Report Here

Source: Skift

Kenyans Urged to Embrace Local Tourism to Boost Revenue

Nairobi — The Kenya Tourism Board (KTB) is urging Kenyans to embrace domestic travel, explore new experiences, and contribute to the growth of the local tourism industry.

The call comes as the “You Deserve A Holiday” campaign has so far sold 108,963 bed nights, generating Sh1.1 billion since it was launched a year ago.

Speaking during the domestic activation drive held at Sigona Golf Club, KTB Chairperson Francis Gichaba emphasized the importance of domestic tourism in supporting local communities and economies.

He noted that while the campaign has already achieved significant milestones, there is still much potential to explore.

“We have seen communities and towns which have come up because of domestic tourism,” said Gichaba.

“This is indeed a transformative phenomenon and speaks of the potential for further growth. We are creating new destinations through the ‘You Deserve A Holiday’ campaign as we encourage Kenyans to explore their own backyard.”

Since its launch in June 2022, the “You Deserve A Holiday” campaign has successfully partnered with over 20 industry stakeholders, including tour operators, airlines, and hoteliers.

These collaborations have resulted in comprehensive travel packages designed to offer seamless experiences for domestic travellers.

The campaign aims to penetrate potential areas within the domestic market and sustain long-term demand for domestic travel through joint marketing initiatives, such as golf tour series, mall activations, corporate visits, church activations, and media promotions.

The campaign has been to various destinations in the country including Nairobi, Machakos, Kisumu, Nakuru and Eldoret through the Magical Kenya golf Tour.

On their part, travel trade partners have shown their commitment to promoting domestic travel and enhancing the overall tourism experience.

Jambojet Ag. Head of Sales and Marketing, Cynthia Otoro expressed enthusiasm about the growing trend of local travel stating:

“It is encouraging to see that people are embracing more local travel more and more. Through this campaign, we’ve uncovered places that people have never known existed,” she said.

“We are proud to be part of the tourism and travel ecosystem as we are able to provide and give access to the hotels, tour operators, and other stakeholders involved in creating memorable travel experiences.”

The campaign is set to continue its activation drives, with upcoming events in Nyeri and Mombasa.

Source: Capital Business

Air Cargo demand remains weak in May

IATA has released data for May 2023 global air cargo markets showing weak market conditions.

Gobal demand, measured in cargo tonne-kilometers (CTKs), fell 5.2% compared to May 2022 (-6.0% for international operations).

Capacity, as measured by available cargo tonne-kilometers (ACTKs), rose 14.5% compared to May 2022, primarily driven by belly capacity which increases as demand in the passenger business recovers. Capacity is now 5.9% above May 2019 (pre-pandemic) levels.

Key factors influencing demand include:

The global manufacturing Purchasing Managers Index (PMI) indicates an annual contraction of 1.4% in new export orders and a decrease of 5.2% year-on-year in production PMI. This suggests a cooling in global manufacturing demand.

Global goods trade decreased by 0.8% in April, due to macroeconomic challenges and supply chain constraints. Trading conditions appeared to favour maritime cargo as demand for container shipping contracted by 0.2% while air cargo demand weakened by 6.3% year-on-year.  

The global supplier delivery time PMI increased to 54.5 in May, up from its low of 35 in October 2021, indicating shorter delivery times and some relief for supply chains. However, this is also a sign of weaker global goods trade demand.

“Trading conditions for air cargo continue to be challenging with a 5.2% fall in demand and several economic indicators pointing towards weakness. The second half of the year, however, should bring some improvements. As inflation moderates in many markets, it is widely expected that central bank rate hikes will taper. This should help stimulate economic activity with a positive impact on demand for air cargo,” said Willie Walsh, IATA’s director general.

May Regional Performance

Middle Eastern carriers experienced a 3.1% year-on-year decrease in cargo volumes in May 2023. This was a slight improvement in performance compared to the previous month (-6.7%). Capacity increased 15.6% compared to May 2022.

African airlines posted a 2.4% decrease in demand compared to May 2022. This was a decline in performance compared to the previous month (-0.9%). Notably, the growth on the Africa to Asia trade route slowed significantly in May from 18.5% in April to 11.0%, possibly due to the impact of the conflict in Sudan since mid-April. Capacity in May was up 9.2% compared to the same month in 2022. 

Source: Times Aerospace

All-Boeing Future: Kenya Airways To Retire Its Embraer & Bombardier Aircraft

The carrier wants to adopt a single-type fleet strategy and is targeting Boeing aircraft.

Kenya’s flag carrier plans to retire its Embraer and Bombardier fleet in favor of Boeing aircraft as it looks to incorporate “mono fleeting.” This cost management strategy will be implemented in line with the airline’s long-term fleet and route development plans.

So far, Kenya Airways (KQ) has disclosed plans to phase out its Embraer Regional Jets and Bombardier aircraft to increase capacity and meet passenger demand. It is progressively moving towards becoming an all-Boeing operator, which the board has approved.

Mono fleeting

Fleet commonality can be a game changer for KQ. By operating aircraft that share common parts, and other characteristics, the airline will gain more control of its training and planning while reducing operating and maintenance costs.

Although airlines rarely disclose how much they pay OEMs for aircraft acquisition, they get significant discounts when making large orders. Mono fleeting can also help KQ to receive bulk discounts when purchasing new aircraft. Kenya Airways Group Managing Director and CEO Allan Kilavuka said;

“What mono fleeting does is to simplify our fleet and bring more commonality to the type of aircraft that we fly. It helps particularly with our training and planning and reduces costs because of the type of crew that we need, spare parts, financing and bulk discounts we can get.”

Increasing narrowbody capacity

Kenya Airways’ mono fleeting strategy is part of the plan to increase its narrowbody capacity. According to ch-aviation’s fleet database, the airline currently has a fleet of 21 narrowbody aircraft, including 13 Embraer 190s.

KQ is looking to phase out this fleet of regional jets as they are not providing the airline with enough capacity. The board has already approved the decision to streamline its fleet and acquire new Boeing jets, but it will not be implemented immediately. Allan Kilavuka added;

“We also want to increase the capacity of our narrowbody fleet as the current Embraer fleet that we have is too small. We tend to have payload issues; in other words, we cannot carry all the luggage that we need, so we want to increase the size over a period of time. That’s why we are going for the mono fleeting strategy.”

Looking at the airline’s last annual report, in 2022, the group operated a fleet of 39 owned and leased aircraft. The fleet consisted of nine Boeing 787-8s, eight B737-800s, 13 ERJs, two B737-300Fs, and seven DHC 8-400s. The fleet had been reviewed to ensure that it was fit to serve the network growth.

Sights on recovery

At its 47th AGM, Kenya Airways set its sights on business recovery by 2024 after seeing an increase in revenue and passenger numbers throughout 2022. While it still feels the long-lasting effects of the pandemic, the group predicts a strong recovery as global traffic increases and the industry continues to gain momentum.

The carrier’s turnaround strategy is still on course, and the restructuring efforts led to a 66% revenue increase in local currency, a remarkable 68% increase in passenger numbers, and a 3.5% increase in cargo tonnage. Allan Kilavuka said at the AGM;

“Kenya Airways remained resilient by taking advantage of the upsurge in travel demand through frequency increment and improved service offering. Despite some headwinds with fuel cost increasing year-on-year by 160%, and the dollar deterioration that impacted our direct operating costs, we are confident that with the restructuring initiatives introduced in 2022, the airline is poised for success and will attain its aspiration to turn around by 2024.”

The group is committed to building a robust, reliable, and sustainable airline. Kenya Airways will phase out older aircraft to operate a more modern and fuel-efficient fleet as part of its sustainable fleet development strategy.

Source: Simple Flying

Dubai’s DET hosts year’s first ‘City Briefing’, key tourism milestones highlighted

The event, held at the Dubai World Trade Centre, highlighted the crucial role assigned to the city’s tourism sector in driving the success of the Dubai Economic Agenda, D33

Dubai’s Department of Economy and Tourism (DET) held its first ‘City Briefing’ of the year on June 15.

Hosted for stakeholders and partners, the event was attended by Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Second Deputy Ruler of Dubai, and more than 1,200 top executives from across the tourism ecosystem including aviation, travel, hospitality and retail sectors.

Attendees were given the opportunity to gain in-depth insights into the Dubai Economic Agenda, D33, which was launched by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to consolidate Dubai’s status as one of the top three global cities.

The event, held at the Dubai World Trade Centre, highlighted the crucial role assigned to the city’s tourism sector in ensuring the success of the 10-year agenda.

Highlights of DET’s briefing

In addition to the focus on the D33 Agenda, the latest data and industry outlook for 2023 and beyond were also shared by DET at the ‘City Briefing’ which was presided over by Helal Saeed Almarri, director general of DET.

Almarri said: “The Dubai Economic Agenda, D33 is a bold and ambitious plan developed under the visionary leadership of HH Sheikh Mohammed bin Rashid Al Maktoum, to create a legacy that will be celebrated by future generations, as we foster a climate of innovation, sustainability and inclusivity to pave the way for a future where Dubai stands proudly among the world’s top three premier destinations. With great optimism for 2023 and beyond, we will press on with determination and a renewed focus on delivering exceptional experiences for our visitors from around the world.”

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, also presented an overview of the industry and shared valuable insights into visitor trends and marketing strategies to the gathering.

He stressed the importance of collaboration with stakeholders and partners to ensure Dubai remains the preferred destination for global travellers and highlighted the various global campaigns that have successfully showcased the diversity of Dubai’s offering, further reinforcing its position as a must-visit destination.

He said that DET’s continuous efforts to promote Dubai across its international markets was directly responsible for driving 57 per cent of the total visitation of 14.4 million international visitors in 2022, generating millions of prospective travellers for the future, especially an anticipated substantial increase in travellers from 2023 to 2025.

These marketing activities, he said, have further influenced 11 million individuals to plan their Dubai trips and also inspired six million people to add Dubai to their ‘bucket list’ of destinations to visit between this year and 2025.

Dubai tourism and hospitality performance showcased

Dubai’s tourism sector delivered a robust performance, for the fourth successive month this year, welcoming 6.02 million international visitors from January-April, an 18 per cent year-on-year increase, compared to 5.10 million visitors during the same four-month period in 2022.

Dubai’s hotel sector reflected an average occupancy of 80 per cent during the January-April period this year, among the highest in the world, exceeding the 76 per cent level achieved by city hotels during the corresponding period in 2022 and nearly matching the pre-pandemic 83 per cent occupancy in 2019.

According to a STR Global Hotel Monitoring Update, Dubai ranked first in occupancy, with a rate of 79.9 per cent, only 2.9 percentage points below the pre-pandemic levels of 82.7 per cent, placing it ahead of other global destinations like London, New York, Los Angeles and Paris. The report also revealed that Dubai ranked first in Gross Operating Profit per Available Room (GOPAR), with a rate of U$145 (Dhs530), just 9 per cent below pre-pandemic levels, followed by Paris ($113) and Singapore ($102) respectively.

Hotel supply reached 148,949 rooms in 814 hotel establishments at the end of April 2023, a 26 per cent growth over the pre-pandemic figures of 118,449 rooms in 722 hotel establishments at the end of April 2019. Moreover, the average length of stay by guests has increased by 13 per cent to four nights compared to 3.5 nights in 2019, indicating Dubai’s appeal as a destination for longer-stay travellers.

According to data from industry expert Amadeus, search and booking volumes for Dubai remained steady from September 2021 to April 2023, with searches and bookings to Dubai during January to April 2023 nearing pre-pandemic levels and especially close to the high numbers seen during the Expo and pre-World Cup 2022 period.

Kids Go Free summer campaign to drive tourism

Kazim discussed the ‘Kids Go Free’ campaign, which aims to encourage families and global travellers to choose Dubai as their summer vacation destination. Hotels, entertainment centres and attractions are participating in this citywide initiative, offering families and children the opportunity to enjoy memorable experiences at attractive discounts and also free of cost for kids all summer.

Kazim provided insights into the extensive in-market activities carried out by DET’s overseas offices and over 3,000 global partners including travel trade and airline partnerships for leisure tourism, international roadshows and familiarisation trips for the travel trade and global media.

Ahmed Al Khaja, CEO of the Dubai Festivals and Retail Establishment, discussed leveraging festivals and events to increase visitation and reinforcing Dubai’s position as an international hub for leisure and business events and the MICE industry. He presented the diverse festivals and events sector in Dubai that are a part of the Retail Calendar including the iconic Dubai Shopping Festival and Dubai Food Festival, as well as the upcoming Dubai Summer Surprises, Eid in Dubai-Eid Al Adha celebrations, and the second edition of the Dubai Esports and Games festival, in addition to retail offers and promotions that residents and visitors can avail themselves of this summer in Dubai.

Stakeholders and partners attending also shared their milestones and positive outlook for the emirate’s plans to drive tourism and the ‘D33’ agenda.

Source: Gulf Business

Africa: Kenya, Tanzania, and South Africa Lead Efforts to Attract Chinese Tourists and Revitalize Tourism Sectors

Kenya, Tanzania, and South Africa are taking the lead among African nations in revitalizing their tourism markets following the pandemic.

With a keen focus on capturing the attention of Chinese travelers, these countries are strategically positioning themselves to attract visitors from China. By tapping into the growing interest of Chinese tourists in exploring Africa’s rich landscapes, wildlife, and cultural offerings, Kenya, Tanzania, and South Africa aim to revitalize their tourism sectors and drive post-pandemic recovery.

According to finance.yahoo.com, The three countries, along with Egypt, were among the first popular destinations for Chinese visitors after the Asian giant relaxed two-year-old pandemic rules to allow its citizens to travel for tourism in February.

All three countries have been implementing long-term strategies — including resuming direct flights to China, relaxed e-visa requirements, direct marketing in China through embassies and travel agents — and investing heavily to woo Chinese tourists.

Kenya is expanding its focus to reach more Chinese tourists by marketing through travel agents, partnerships with airlines and tour operators and social media platforms, according to John Chirchir, acting chief executive of Kenya Tourism Board. There’s a particular focus on WeChat, Mafengwo, Weibo, and Douyin, the China-based sister video channel to TikTok.

Chirchir said Kenya recorded 8,000 arrivals between January and April this year compared to just under 6,000 for the same period last year.

In 2022, Kenya earned $2.13 billion in income from tourism after a surge in visitors as COVID restrictions eased around the world, according to the tourism board. The ministry has forecast Kenya could recover to 2019 tourism numbers by 2024.

Similarly, South Africa has targeted job growth with the resumption of Chinese tourist activities in the country, said Nomasonto Ndlovu, chief operations officer of South Africa Tourism. She told Semafor Africa that with additional direct flights resuming from China to Johannesburg, for example, the country projects to receive around 8,000 Chinese tourists per month later this year. This would bring it back to 2019 levels when South Africa received 94,000 visitors from China.

African tourist markets are focused on the vast Chinese markets as part of a wider effort to overcome difficult economic environments. Jobs and foreign exchange earnings have yet to recover after the global pandemic, and many countries are grappling with extended economic downturns exacerbated by the fallout from Russian invasion of Ukraine. Although tourism usually accounts for less than 10% of GDP in most of the larger African economies, aside from Tanzania (17%), it punches above its weight as a contributor to foreign exchange earnings.

Local travel companies are taking it upon themselves to promote their countries on the ground in China rather than just hope for visitors. “That makes it possible to cast the net wider as we showcase Kenya’s tourist attractions,” said Darlene Anjimbi, a tour manager at Kenya China Travels and Tours.

Much of the long-term tourism business in Africa has traditionally targeted Europeans and North Americans in terms of everything from the types of entertainment offered to familiar languages and cuisine at hotels and on tours — and they still dominate in visitor numbers. In Kenya for instance, travelers from the United States alone accounted for over 12% of international visitors last year.

Source: atqnews

Lobby seeks consolidation of Africa airlines to lift industry.

Issuance of passports for free to East African Community (EAC) citizens is one of the practices that can boost air travel in the region, a study published by A regional private sector lobby suggests.

Airlines in the region can also consolidate, going the European or American way, which the study by the East African Business Council (EABC) notes, would stimulate passenger and cargo movement by air.

The study, which analyses aviation laws, reports and academic publications, pokes holes into the current industry practices against the cost of operations and the push for open skies initiative.

It is titled Study on Air Space Liberalisation in the East African Community: Focus on Cost Drivers and Regulations.

The study, commissioned by EABC in partnership with Trademark East Africa and funded by Kenya’s Ministry of Foreign Affairs and the Dutch government, focused on six areas – operational costs, existing air transport regulations in EAC, effects of domesticated EAC space, benefits of adoption of the EAC Single Space Agreement and the impact of aviation costs on cargo volumes and evaluation of best practices in other regions.

One of the best practices suggested in the study published in April is the consolidation of the airline business in the region through mergers and acquisitions.

It argues that airline consolidation, mergers and acquisitions in the United States and Europe resulted from the need to stimulate growth within the industry.

“It is a practice that can be adopted,” reads the study. It documents that from 2000 to 2010, the US airline market consolidated into four airlines.

The study also notes that the same trend is slowly being replicated in Europe.

“The Air France-KLM merger, which took place on May 5, 2004, rekindled European airline’s interest in consolidation. The EAC can adopt and consolidate airlines to increase their competitiveness globally,” it states. The study measured air transport competitiveness as assessed in the World Economic Forum by looking at airport connectivity and efficiency.

Connectivity measures the level of integration of a country within the global air transport network while efficiency is based on services. This includes issues to do with frequency, punctuality, speed and price.

“The rankings indicate that on average, EAC countries are ranked low in terms of competitiveness indicators,” the study says. The region also has limited infrastructure, which is a challenge to the air transport sector. The study cites South Sudan, which lacks full control of its airspace due to a lack of well-developed infrastructure and qualified personnel.

“In Burundi, the number of flights to Bujumbura is limited, compounded by a lack of a national carrier, which contributes to an increase in the cost of air transport,” notes the study.

South Sudan’s challenges are also exacerbated by insecurity.

The study has also faulted the lack of harmonised charges, fees and taxes imposed by the respective national regulations and authorities. It notes that Juba International Airport is the most expensive airport in the EAC region with an airport tax on passengers of sh18,300 (USD 122).

“The charge is more than twice the departure taxes charged by the different partner states,” the study says.

Entebbe International Airport charges $50.6 (Sh7,500) for every departing passenger, with$40 (Sh6,000) as passenger service charge and $10 (Sh1,500) as security charge and $0.6 (Sh90) as passenger handling charge.

Jomo Kenyatta International Airport (JKIA), on the other hand, charges a passenger service fee of $50 (Sh7,500) for every departing passenger and does not charge extra charges for security and passenger handling services. Julius Nyerere International Airport for its part, charges a passenger service charge of $37 (Sh5,550) and a security charge of $10 (Sh1,500).

Bujumbura International Airport and Kigali International Airport have the lowest passenger departure charges of $40 (Sh6,000) and $42 (Sh6,300) respectively.

The study found out that ticket prices also vary greatly even for the same distance and same airline if the departure time is different or if the ticket is booked at different times.

Ticket prices are even higher if there is a connection involved.

“EAC member states such as South Sudan and Burundi with limited direct flights and without national airlines, were generally found to have high average ticket prices,” the study says. It documents that the ticket price per kilometre in the EAC region is more than twice the ticket price for destinations in Europe and other countries in Africa.

“The average ticket price per kilometre in the EAC is  Sh58 ($0.39 )/km compared to only $0.21 (Sh30)/km in other African countries and $0.12 (Sh18)/km for destination airports in Europe, Asia and the Middle East,” the study adds.

The study notes that there are so many barriers to a vibrant air travel ecosystem and they need to be “knocked down.”

Some of these include reviewing check-in times. “Most passengers are tired of getting to the airport so early; let’s cut bag-free, pre-screened short-haul flyers some slack and allow them a 20-minute window to check in,” reads the study.  The study recommends the implementation of visa waiver programmes in all countries where most business and tourism come from to spur air transport in the region.

Source: The Standard