Navigating Payment Turbulence — Unraveling Payment Processing Challenges in the Travel Industry!

In an era where technology has seamlessly woven itself into the fabric of our daily lives, the travel industry stands at the intersection of innovation and complexity. Amidst the excitement of planning vacations and exploring new destinations, the intricate web of payment processing challenges often go unnoticed. In this comprehensive blog, we will delve into the nuances of payment processing in the travel industry, unraveling the complexities that both businesses and consumers encounter.

  1. Cross-Border Payment Friction —

One of the foremost challenges faced by the travel industry in payment processing is the complexity of cross-border transactions. As travelers jet off to explore new horizons, payments traverse international borders, encountering diverse currencies, regulations, and financial systems. This intricacy often leads to currency conversion issues, delayed transactions, and additional fees, leaving both consumers and businesses grappling with a less-than-optimal payment experience.

Solutions:

Multi-Currency Support: Implementing payment systems that seamlessly support multiple currencies can mitigate the impact of currency conversion issues, providing users with a transparent and hassle-free payment experience.

Regulatory Compliance: Staying abreast of and adhering to international financial regulations is crucial. Collaborating with payment processors well-versed in cross-border compliance can help navigate the complex regulatory landscape.

  • Fraud Risks and Security Concerns —

As online transactions surge, so do the risks associated with fraud and security breaches. The travel industry, with its high-value transactions and vast array of customer data, becomes a lucrative target for cybercriminals. From stolen credit card information to identity theft, the potential consequences of inadequate payment security measures are significant.

Solutions:

Tokenization: Employing tokenization technology can enhance security by replacing sensitive payment information with unique tokens. This minimizes the risk of data breaches and ensures that customer data remains protected.

Two-Factor Authentication (2FA): Implementing robust authentication processes, such as 2FA, adds an extra layer of security, making it more challenging for unauthorized individuals to gain access to sensitive information.

  • Dynamic Pricing and Transparent Payments —

The dynamic nature of pricing in the travel industry, with fluctuating fares and real-time availability, poses a unique set of challenges in payment processing. Consumers expect transparency in pricing, and any discrepancies or hidden fees can lead to dissatisfaction. Ensuring a seamless payment experience amidst the constantly evolving pricing landscape requires innovative solutions.

Solutions:

Real-Time Price Adjustments: Implement systems that dynamically adjust prices in real-time, ensuring that customers are charged accurately based on the latest information, and transparency is maintained throughout the booking process.

Clear Communication: Providing clear communication on pricing details, including taxes and fees, helps build trust with customers. Transparent payment processes contribute to a positive user experience and can lead to increased customer loyalty.

  • Mobile Payments and User Experience —

The ubiquity of smartphones has transformed the way people interact with businesses, including travel services. Mobile payments have become a cornerstone of the industry, but optimizing the user experience on mobile platforms presents its own set of challenges. From responsive design to intuitive interfaces, ensuring a seamless mobile payment experience is imperative for customer satisfaction.

Solutions:

Mobile-Optimized Interfaces: Designing user interfaces specifically tailored for mobile devices enhances the overall payment experience. Intuitive navigation and responsive design contribute to smoother transactions on smartphones and tablets.

Mobile Wallet Integration: Embracing popular mobile wallets and payment apps streamlines the payment process. Integrating options like Apple Pay, Google Pay, and others caters to the preferences of mobile-savvy travelers.

  • Integration with Emerging Technologies —

The rapid evolution of technology introduces both opportunities and challenges for the travel industry. Integrating with emerging technologies such as blockchain, artificial intelligence (AI), and machine learning (ML) can revolutionize payment processing but requires careful consideration and strategic planning.

Solutions:

Blockchain for Security: Leveraging blockchain technology can enhance security and transparency in payment transactions. Blockchain’s decentralized nature reduces the risk of fraud and ensures the integrity of financial transactions.

AI and ML for Fraud Detection: Implementing AI and ML algorithms can strengthen fraud detection mechanisms. These technologies can analyze patterns, detect anomalies, and adapt to evolving threats, providing a proactive approach to security.

  • Regulatory Compliance and Legal Complexities —

The travel industry operates on a global scale, subject to a myriad of regulations and legal frameworks. Ensuring compliance with diverse international and local laws poses a significant challenge for payment processors and businesses alike. Failure to navigate these regulatory waters diligently can result in legal consequences, fines, and reputational damage.

Solutions:

Legal Consultation: Collaborating with legal experts specializing in international payment regulations can provide invaluable insights. Establishing a robust legal framework ensures that payment processes align with the various compliance requirements across regions.

Regular Compliance Audits: Conducting regular compliance audits helps identify any gaps or changes in regulations. Staying proactive in adapting to evolving compliance standards minimizes the risk of legal complications.

  • Chargebacks and Dispute Resolution —

Chargebacks, often stemming from customer dissatisfaction, unauthorized transactions, or fraud, are a common concern for the travel industry. Disputes can lead to financial losses, strained customer relationships, and added administrative burdens. Resolving chargebacks efficiently is crucial to maintaining a positive payment ecosystem.

Solutions:

Effective Communication: Establishing clear communication channels with customers can prevent misunderstandings that may lead to chargebacks. Timely and transparent communication regarding policies, refunds, and dispute resolution can foster trust.

Robust Documentation: Maintaining thorough documentation of transactions, including booking confirmations, terms of service, and customer communications, strengthens the merchant’s position in case of disputes.

  • Infrastructure Scalability and Reliability —

The travel industry experiences fluctuations in demand, especially during peak seasons and special events. Payment processing systems must be scalable to handle sudden spikes in transactions without compromising speed and reliability. Downtime or processing delays can have severe consequences, affecting customer satisfaction and revenue.

Solutions:

Cloud-Based Solutions: Utilizing cloud-based payment processing systems allows for scalability and flexibility. Cloud infrastructure can handle increased transaction volumes during peak periods, ensuring a seamless payment experience for customers.

Redundancy and Failover Mechanisms: Implementing redundancy and failover mechanisms in payment systems ensures uninterrupted service. Redundant servers and backup systems can mitigate the impact of hardware failures or other technical issues.

  • Collaboration and Interoperability —

The travel industry consists of a complex ecosystem of service providers, including airlines, hotels, travel agencies, and payment processors. Ensuring seamless collaboration and interoperability between these entities is essential for a cohesive payment experience. Incompatibility or communication breakdowns can lead to inefficiencies and errors in transaction processing.

Solutions:

Standardized Protocols: Adhering to industry-standard protocols for data exchange facilitates interoperability between different components of the travel ecosystem. This ensures that information flows seamlessly across various platforms.

Collaborative Partnerships: Establishing strong partnerships and collaborations between travel service providers and payment processors enhances communication and interoperability. Shared platforms and integrated systems can streamline payment processes.

Conclusion —

In conclusion, the payment processing challenges faced by the travel industry are multifaceted, requiring a holistic and strategic approach. From cross-border complexities to security concerns and regulatory hurdles, addressing these challenges demands a combination of technology adoption, regulatory compliance, and a commitment to customer satisfaction.

The industry’s future success hinges on its ability to adapt to emerging technologies, foster collaboration, and prioritize the security and transparency of payment processes. As we navigate the ever-evolving landscape of global travel, overcoming these challenges will not only enhance the efficiency of payment processing but also contribute to a positive and memorable experience for travelers worldwide. The journey toward a seamless payment horizon in the travel industry is ongoing, marked by innovation, resilience, and a dedication to elevating the overall travel experience.

Source: Pulse

Navigating the Future: Empowering Travel and Tourism Through Online Payments

18 Apr 2024 – By Bryan Obala.

In the fast-evolving landscape of travel and tourism, the role of online payments has become more vital than ever before. Projections indicate that by 2033, the industry will soar to a staggering $15.5 trillion, contributing significantly to the global economy bloomberg. Particularly in developing markets across Africa, where new destinations are emerging as hotspots, the potential for growth in the travel industry is immense.

To capitalize on this growth, travel merchants must align with consumer expectations by offering seamless and reliable payment systems, with online sales projected to constitute 74% of total revenue by 2027. Here are five essential strategies that can help travel merchants meet these increasingly high consumer demands:

  1. Transparency: Be clear and specific about the payment options available to consumers. Transparency builds trust and enhances the buying experience.
  2. Security: In an era of burgeoning travel e-commerce, robust cybersecurity measures are indispensable. Offering secure payment options helps instill confidence and protects against fraud, which saw a concerning 156% increase in the global travel and leisure industry in 2021.
  3. Convenience: Tailor payment options to meet consumer preferences. Personalized services, including currency options and bundled offerings like travel insurance, enhance convenience and satisfaction.
  4. Reliability: High authorization rates are key indicators of success. Optimizing authorization rates not only drives incremental revenue but also fosters customer loyalty and repeat business. Even a slight improvement in authorization rates can translate into significant additional revenue, enabling businesses to fund expansion and innovation initiatives.
  5. Flexibility: Embrace Buy Now, Pay Later options to accommodate the diverse financial needs of travelers. Offering flexible payment solutions encourages purchase completion and enhances the overall shopping experience.

Looking ahead, the future of travel and tourism is brimming with possibilities. As businesses chart their course forward, prioritizing transparency, security, convenience, reliability, and flexibility will be paramount. By embracing these principles, merchants can navigate the dynamic landscape of global travel and ensure that everyone reaps the economic benefits of this thriving industry.

High flight ticket taxes and fees slowing air transport in Africa.

Taxes and fees charged on African air tickets are higher than what airlines in other continents charge and are inhibiting air transport on the continent. According to the African Airlines Association (Afraa), a leading trade association of airlines based in Ghana that researches aviation, the average amount paid in taxes and fees by passengers in Africa is more than twice what air travelers in other continents pay.

Taxes and fees on African air tickets averages $64 while in Europe it averages $30 per ticket while it is even lower in Middle East at $29.65.

The high add-on fees have inhibited the growth of air travel on the continent that is grappling with high poverty rates.

Regionally, Western and Central Africa rank as the most expensive regarding international passenger charges averaging $94.59 and $93.74.

Unfriendly Environment

However, passengers from Northern Africa pay the lowest in taxes and fees averaging $26.27. The charges have been blamed on the unfriendly business environment, poor governance and less subsidies given to airlines in Africa compared to those abroad.

East African Business Council in a study on air space liberalization in the EAC shows average departure charges account for 13 percent of the ticket prices for flights in EAC and eight percent for flights to other African countries. Afraa notes that despite efforts by airlines to offer passengers low fares, taxes and fees cause total ticket prices to more than double of the base rate.

“The low purchasing power in Africa calls for interventions to evaluate the issue of high taxes and fees to stimulate demand and make air transport affordable to African citizens”, Afraa recommends.

Apart from passenger taxes levied directly on the ticket, airlines incur other charges connected to their operations in airports such as aircraft charge, landing, parking, passenger bus, and hangar among others.

Operational Costs

In 2019 as noted by Afraa, the International Civil Aviation Organization, a United Nations agency, regulations stipulated fuel that accounted for 24.7 percent of operational costs by African airlines was not to be taxed.

However, other particular taxes and fees are applied to passengers.

Source: Business Daily Africa  

Kenya Association of Travel Agents (KATA) Partners with Absa Bank Kenya and Visa to Introduce Enhanced Corporate Card Solutions.

28th March 2024

By: Bryan Obala

Membership & Communications, KATA

In a groundbreaking collaboration, Absa Bank Kenya, in conjunction with Visa, has unveiled the Visa Commercial Choice Programme, a pioneering Corporate Card solution aimed at members affiliated with the Kenya Association of Travel Agents (KATA). This innovative initiative promises a myriad of benefits including enhanced automation, flexibility, and improved cash flow management for travel agents across the country.

From left: Dr. Joseph Kithitu, KATA Chairman; Moses Muthui, Consumer Banking Director, Absa Bank; James Kabuthi, Head of Products and Solutions, East Africa, Visa

Under this strategic partnership, travel agents under KATA, representing a formidable network of over 300 travel agencies, stand to gain from streamlined payment solutions tailored specifically for business to business (B2B) transactions. These solutions are geared towards fostering efficient working capital management, operational effectiveness, and improved supplier relationships.

The Visa Commercial Choice Travel Programme, freshly introduced by Absa Bank, offers a plethora of advantages for travel agents within KATA. Notably, agents now have the option to conduct transactions in Kenyan Shillings or US Dollars, empowering them to effectively manage cash flows and optimize working capital. Furthermore, members can leverage the Visa Commercial Pay Virtual Card Platform to automate booking processes and access cutting-edge tools for data management and reconciliation, complete with an intuitive reporting feature for seamless monitoring.

In addition to the tailored Corporate Card solution, Absa Bank is also rolling out a revamped Absa Corporate Visa Card, equipped with enhanced features and flexibility to address the diverse needs of businesses. Through this card and the innovative Visa Commercial Pay Virtual Card Platform, businesses can exercise greater control over employee-initiated expenses and payments, thereby enhancing visibility and operational efficiency.

Commenting on the collaboration, Moses Muthui, Consumer Banking Director at Absa Bank, expressed enthusiasm, stating, “The collaboration between Absa Bank Kenya, Visa, and the Kenya Association of Travel Agents marks a significant milestone in our efforts to empower businesses and accelerate digital inclusion in this space with smarter and integrated payment solutions.”

Eva Ngigi-Sarwari, Visa Kenya Country Manager, echoed similar sentiments, highlighting the partnership’s commitment to innovation and service excellence. She emphasized, “By combining Visa’s global reach and advanced technology with Absa’s deep local market expertise, we are confident that this new payment solution will significantly enhance the way travel agents manage their transactions, providing them with a seamless, efficient and secure experience.”

Nicanor Sabula, CEO of KATA, lauded the collaboration, affirming its importance in catering to the specific needs of members and underscoring the commitment to industry-focused financial solutions.

From left: Dr. Joseph Kithitu, KATA Chairman; Moses Muthui, Consumer Banking Director, Absa Bank; James Kabuthi, Head of Products and Solutions, East Africa, Visa at the Launch of the Corporate Cards for Travel Agents

The Absa Corporate Visa Card offers a range of features including virtual and physical card options, granting customers the flexibility to adapt to various payment scenarios. Furthermore, it integrates seamlessly with Visa Commercial Pay, facilitating hassle-free payments to travel suppliers such as airlines and hotels while streamlining reconciliation processes.

With the launch of the Absa Corporate Visa Card, Absa Bank Kenya reiterates its dedication to innovation and excellence in client service. Leveraging cutting-edge technology and strategic partnerships, the bank continues to deliver solutions that resonate with the evolving needs of businesses in Kenya and beyond.

African travel industry leaders to unite at WTM Africa 2024 this April.

The African travel industry is on the brink of a significant resurgence, with leaders and stakeholders gearing up for an event that promises to catalyze growth, foster innovation, and showcase the continent’s vast potential as a travel destination. The World Travel Market (WTM) Africa 2024, scheduled to take place from 10 to 12 April 2024 in the vibrant city of Cape Town, South Africa, is set to be a pivotal gathering for professionals across the travel industry. This comprehensive article delves into what makes WTM Africa 2024 not just an event but a milestone in shaping the future of travel on the continent.

The Essence of WTM Africa 2024

WTM Africa has established itself as a leading travel and tourism event, bringing together global brands, African entities, and travel professionals from all over the world to engage in meaningful discussions, forge partnerships, and explore the latest trends shaping the industry. The 2024 edition of WTM Africa aims to build on this legacy, offering a platform for showcasing sustainable tourism practices, innovative technologies, and the diverse cultural and natural heritage that Africa has to offer.

Uniting Industry Leaders

One of the core strengths of WTM Africa 2024 lies in its ability to unite leaders from various facets of the travel industry. From tour operators and travel agents to government officials and tech startups, the event promises a convergence of ideas and expertise that is rare to find elsewhere. This gathering of minds is crucial for addressing some of the pressing challenges facing the industry, including sustainable tourism development, digital transformation, and enhancing connectivity within the continent and beyond.

Spotlight on Sustainable Tourism

Sustainability is set to be a major theme at WTM Africa 2024, reflecting a growing consciousness within the industry about the environmental, social, and economic impacts of travel and tourism. The event will feature discussions on how to balance tourism growth with conservation efforts, support for local communities, and the preservation of cultural heritage. Exhibitors and speakers will share success stories and best practices, offering insights into how sustainable tourism can be a powerful tool for development and conservation in Africa.

Harnessing Digital Innovation

Digital innovation is transforming the travel industry at an unprecedented pace, and WTM Africa 2024 will be a showcase for the latest technological advancements. From artificial intelligence and virtual reality to mobile platforms and blockchain technology, the event will explore how these tools can enhance the travel experience, improve operational efficiency, and create new opportunities for growth. Startups and tech companies will have the opportunity to demonstrate their solutions, highlighting the role of technology in driving the future of travel in Africa.

Cultural and Natural Heritage

Africa’s rich cultural diversity and natural beauty are among its greatest tourism assets. WTM Africa 2024 will celebrate this heritage, offering a platform for destinations to showcase their unique attractions, from world-class wildlife safaris and breathtaking landscapes to vibrant cities and ancient historical sites. The event will also highlight cultural tourism initiatives that provide immersive experiences while supporting local traditions and livelihoods, reinforcing the idea that tourism can be a force for positive cultural exchange.

Boosting Intra-African Connectivity

Improving connectivity within Africa is essential for unlocking the continent’s tourism potential. WTM Africa 2024 will address the challenges and opportunities related to transportation infrastructure, air travel, and visa policies. Discussions will focus on collaborative efforts to enhance regional travel, making it easier for tourists to explore multiple destinations and for businesses to tap into new markets. The event will serve as a catalyst for initiatives aimed at boosting intra-African travel, contributing to economic growth and regional integration.

Empowering Local Communities

The empowerment of local communities through tourism will be a critical topic at WTM Africa 2024. The event will showcase community-based tourism projects that are making a difference by providing income opportunities, preserving local cultures, and promoting social inclusion. By putting a spotlight on these initiatives, WTM Africa aims to inspire further investment in community-led tourism, demonstrating how the industry can contribute to social and economic development across the continent.

Networking and Partnership Opportunities

WTM Africa 2024 is not just about discussions and exhibitions; it is also a prime opportunity for networking and forming new partnerships. The event’s carefully curated schedule includes matchmaking sessions, networking events, and business meetings designed to connect attendees with potential partners, investors, and clients. These interactions are vital for fostering collaboration across the industry, sparking innovation, and driving collective efforts towards a more sustainable and prosperous future for African travel.

WTM Africa 2024 is poised to be a landmark event for the African travel industry, offering a unique blend of inspiration, innovation, and collaboration. By uniting industry leaders, showcasing sustainable tourism practices, exploring digital advancements, and celebrating Africa’s cultural and natural heritage, the event aims to chart a course for the future of travel on the continent. As attendees gather in Cape Town, they will not only witness the potential of the African travel industry but also play a part in shaping its evolution. The journey towards a more connected, sustainable, and vibrant travel ecosystem in Africa continues, and WTM Africa 2024 is a crucial step forward on this path.

Source: Travel and Tour World.

NEW AMADEUS RESEARCH REVEALS TRAVEL INDUSTRY TRANSFORMATION PACE TO ACCELERATE

New global research from Amadeus has revealed a strong appetite for investment across the travel sector in 2024.

The Travel Technology Investment Trends research, which looks at eight sectors across the end-to-end journey in 10 markets – found that nearly all (91%) travel companies surveyed said that they expect ‘moderate to aggressive’ increases in investment in their organisations this year, while two thirds (67%) of senior decision-makers in the sector expect to increase investment specifically in technology this year when compared to spend in 2023.

Airports lead the way with an average percentage increase of 17%, followed by corporate travel managers with 15% and hotels on 14%. Airlines were fourth with a 13% increase, followed by travel agencies and travel payments on 13% and 12% respectively.

Smarter retailing, personalisation and driving digital efficiency are the top priorities for 2024 as full-service airlines expect to see an 18% increase in revenue from switching to modern retailing and are said to be optimistic that the transition to ‘Offer & Order’ will take place within the next four years.

NDC will be the top technology for implementation by leisure travel agents over the next 12 months as 40% of the agents surveyed said this is their focus.

In total, 60% of airports expect to roll-out biometrics across the complete airport experience in the next five years, including check-in, bag-drop, lounge and boarding.

In the hospitality sector, 85% of respondents anticipate personalization could help them to deliver more than 5% growth in incremental revenue.

It found that a third of corporate travel managers said its organizations intend to digitize the complete end-to-end expense management process over the coming 12 months, while a travel payments leaders confirmed its organizations are planning to better manage global payments flows by implementing payments orchestration in the next 12 months.

Decius Valmorbida, president, travel of Amadeus, said: “The findings match our on-the-ground experience with customers – every area of the travel industry is increasing investment in digital transformation. It’s crucial this spending delivers maximum impact and improves the traveler experience across the travel ecosystem.

“Existing technologies, such as biometrics, are already helping to make trips more contextualized and relevant.

“At the same time, the emergence of Generative AI promises to increase the pace of change still further. Travelers will experience significant improvement to the on-trip experience in the coming years, with commitment, investment and collaboration across the ecosystem combining to make travel work better.”    

Francisco Pérez-Lozao Rüter, president, hospitality of Amadeus, added: “We know that the right technology is the key to connecting and unlocking the value of our travel ecosystem. Hoteliers, airlines and the whole sector are right to be ambitious about the next generation of technology that we are building together.

Travel providers can see huge potential for a better customer experience as well as significant growth and control if they get their investment strategies right now. We can see clear ambition and commitment to evolution from this research and are excited to be at the forefront of this journey with our customers.”

The survey which was conducted online in Q4 of 2023 found the Top priority technologies for 2024 to be machine learning, data analytics, digital payments, digitalisation and cloud computing.

By 2029, respondents said their most important technologies will still be machine learning but this time it will be followed by Generative AI.

Cloud computing shoots to third most important, from last in 2024, followed by digital payments and data analytics as their smallest priority.

The results of Travel Technology Investment Trends will be launched in Extended Reality in an Amadeus Lounge created in collaboration with Amadeus’ strategic partner Accenture.

During the first half of this year 2024, Amadeus will release in-depth reports examining each sector explored in the research.

Source: Travolution

Emirates and AIDA Cruises Extend Partnership, Elevating Dubai’s Maritime Tourism Status.

Solidifying Dubai’s place as a major maritime tourism hub, Emirates and AIDA Cruises have renewed their partnership for a further two seasons.

The renewed partnership was signed on the sidelines of the first day of ITB Berlin and is in line with Dubai’s efforts to significant grow its cruise capacity. Dubai continues to attract the biggest players in the industry through offering a seamlessly integrated maritime hub, with state-of-the-art handling facilities supported with unrivalled air connectivity.

Emirates will explore a number of opportunities with AIDA Cruises for joint marketing, operational alignment and strategic planning around flight schedules from across its network, in addition to enhanced transportation solutions between Dubai International Airport and Dubai Harbour Cruise Terminal.

The partnership will continue to focus on sharing relevant data and insights to improve service delivery, providing dedicated support teams for cruise passengers, and facilitating a smooth check-in process at Dubai Harbour Cruise Terminal. The airline will also dedicate capacity for the next two seasons to ensure continued momentum to meet the demand for cruise packages to Dubai.

The MoU was signed by Adnan Kazim, Deputy President and Chief Commercial Officer, Emirates Airline; and Felix Eichhorn, President of AIDA Cruises.

Adnan Kazim commented on the renewed partnership: “We’re proud of AIDA Cruises’ long-standing commitment to Dubai, when they were one of the first cruise liners to home port in 2006.  We are readying the business for another robust cruise season in Dubai, and through the support of partners like AIDA Cruises anchoring in our home city and hub, we’ll continue to strengthen Dubai’s position as an attractive gateway for winter cruising.”

“The Arabian Gulf is one of our most popular winter destinations due to its moderate flight times, pleasant summer temperatures and many hours of sunshine. Combined with the new state-of-the-art terminals at Dubai Harbour within easy reach of the city’s attractions and excellent airport connectivity, our cooperation with Emirates will further enhance the attractiveness of this destination for our guests with tailor-made flight options,” said Felix Eichhorn, President of AIDA Cruises.

AIDAprima has been operating to Dubai Harbour since 2021 and can accommodate up to 3,200 passengers. This season, passengers embarking and disembarking from Dubai can look forward to diverse itineraries that include destinations like Muscat, Doha, Sir Bani Yas and Abu Dhabi.

Dubai has been a first mover in joining up the entire travel and tourism ecosystem to facilitate hassle-free entry and visas for cruise passengers, seamless handling at ports which includes access to Emirates check-in desks at Dubai Harbour along with a host of other amenities dotted across the entire air and ground journey. Travellers have the added advantage of disembarking at one of the world’s most iconic tourism destinations, with landmarks and attractions that suit every taste, age and budget.

The 12 Emirates check-in counters in Dubai Harbour allow passengers who are disembarking from their cruise ships to fully check-in up to 4 hours before flight departure with the convenience of exploring Dubai without their luggage before heading directly to the airport and breezing past most formalities before their flight.

Last year, Emirates transported around 400,000 cruise passengers using Dubai cruise terminals. The city welcomed over 166 ships during the last cruise season, making it the region’s biggest port of embarkation and most popular call for cruise liners. The city expects an increase of 23% more cruise passengers for the upcoming season.

Source: Breaking  Travel News

Meetings Africa 2024 Ignites Collaboration and Sustainability

Meaningful connections were made at Meetings Africa 2024, solidifying its position as the continent’s go-to platform for the business events sector, with more than 380 exhibiting companies from 22 African nations participating.

Hundreds of industry professionals, including 371 international, regional and local buyers, converged in Sandton, Johannesburg, to strengthen Africa’s position as a premier business events destination within the MICE (Meetings, Incentives, Conferences, and Exhibitions)sector.

The three-day trade show concluded on Wednesday, 28 February, at the Sandton Convention Centre, marking a successful event with fruitful engagement and trade. Industry trends, including sustainable tourism, artificial intelligence (AI), and continuous sector professionalisation, were prominent themes at Meetings Africa 2024.

The trade show left a lasting impression on newcomers, who raved about the event’s professionalism and rich future prospects.

Paul Chibwe from Willch Travel and Tours (Zambia), attending the event for the first time, expressed his high praise for the organisation of the event. “This event has not only met but exceeded our expectations,” he remarked. “Everything was impeccably organised, fostering a conducive environment for networking and exchanging thoughts and ideas. It has truly met our expectations.” Another newcomer, Baityr Diaw, the Commercial Director for the Mangalis Group of hotels (Côte d’Ivoire), stated, “The experience has been really amazing. From as early as 9 am, we have been meeting people and building what I believe are very important relationships with future partners.”

Meetings Africa also provided a platform for returning participants like South African businesswoman Lihle Mahlangu to showcase their work. “Business has been good,” she said, “I have networked with some people from here and Europe. I see great prospects ahead.”

With positive feedback from newcomers and returning participants, Meetings Africa 2024 cemented its role as a valuable platform for networking, professional development, and showcasing the diverse offerings of the African tourism industry.

This positive sentiment was echoed by Minister Patricia de Lille in her opening address. Emphasising Africa’s readiness to host events of all sizes, she declared, “I have no doubt that even here at Meetings Africa, it will be clear for all to see that the African continent is the best place to bring all meetings, events, expos, and indeed incentive trips.”

At the show’s educational programme, South Africa’s Tourism Deputy Minister Mahlalela emphasised Meetings Africa’s vital role in knowledge exchange and innovation within tourism. He highlighted the event’s evolution as a premier platform, fostering crucial connections between buyers and exhibitors.

He underlined the essence of knowledge exchange as a driver for innovation, collaboration, and skills development. “The time has come for us to rewrite the narrative on Africa,” the Deputy Minister said, advocating for a vision that portrays the continent not as a land mired in wars and poverty but as a vibrant and dynamic player on the global stage.”

South African Tourism’s commitment to sustainability shone through South African Tourism CEO Nombulelo Guliwe, who announced a partnership with the Event Greening Forum (EGF) to assess the exhibition’s greening initiatives. This commitment extends beyond individual actions, as Meetings Africa features the Sustainability Village, showcasing locally produced goods fostering economic sustainability and environmental responsibility.

Meetings Africa in Numbers

2024 Meetings Africa saw a remarkable increase in attendees, reaching 3,480, compared to 2,987 in 2023, marking a significant uptick and the highest attendance since 2019. This growth underscores the event’s growing appeal and its critical role in bringing together industry professionals from across the globe.

The Business Opportunities Networking Day (BONDay) saw 1,535 attendees, offering a dedicated session for networking and collaboration ahead of the main event.

The number of exhibiting companies also rose to 382 in 2024 from 355 in 2023, indicating a healthy interest in the event as a platform for showcasing products and services.

Moreover, the event attracted 371 buyers, a notable increase from 273 in 2023, highlighting the event’s effectiveness in drawing key decision-makers and influencers within the industry.

The media presence remained strong, with 179 media representatives attending, mirroring the 2023 figure and demonstrating sustained interest in covering the event and its impact on the industry.

Source:  Tourism News Africa

IATA: Airlines to soar with $25.7bn net profit in 2024 despite challenges.

The International Air Transport Association (IATA) has revealed a positive outlook for the airline industry, projecting improved profitability in 2023 and stabilisation in 2024. However, concerns arise as global net profitability is expected to fall significantly below the cost of capital in both years, revealing substantial regional variations in financial performance.

2024 outlook highlights

In 2024, net profits for the aviation industry are forecasted to reach $25.7 billion, a marginal improvement from the projected $23.3 billion in 2023, resulting in net profit margins of 2.7% and 2.6%, respectively.

Return on invested capital is expected to lag behind the cost of capital by 4 percentage points in both 2023 and 2024, primarily due to a global increase in interest rates driven by heightened inflationary pressures.

Operating profits for the airline industry are on an upward trajectory, projected to rise from $40.7 billion in 2023 to $49.3 billion in 2024. Total revenues are anticipated to experience robust year-over-year growth of 7.6%, reaching a historic high of $964 billion. On the expense side, projected growth is slightly lower at 6.9%, resulting in a total expenditure of $914 billion in 2024.

Exceptionally, 4.7 billion individuals are expected to engage in travel in 2024, surpassing the pre-pandemic level recorded in 2019. Cargo volumes are predicted to increase, reaching 58 million tonnes in 2023 and rising to 61 million tonnes in 2024.

Willie Walsh, Iata’s director general, acknowledges the industry’s resilience, stating, “Considering the major losses of recent years, the $25.7bn net profit expected in 2024 is a tribute to aviation’s resilience.” He underscores that the recovery has come at the cost of about four years of growth.

Revenue and passenger trends

Industry revenues are expected to reach $964bn in 2024, with an inventory of 40.1 million flights, exceeding the 2019 level of 38.9 million. Passenger revenues are set to reach $717bn in 2024, reflecting a 12% increase from $642bn in 2023. Passenger yields are expected to improve by 1.8% compared to 2023, driven by high demand and limited capacity due to persistent supply chain issues.

Efficiency levels remain high, with the load factor expected to be 82.6% in 2024, slightly better than 2023 (82%) and consistent with 2019.

Cargo and expenses

Cargo revenues are projected to fall to $111bn in 2024, impacted by the growth of belly capacity and international trade stagnation. Yields are expected to decline by -20.9% in 2024.

Expenses are anticipated to grow to $914bn in 2024, with fuel prices averaging $113.8/barrel (jet). Airlines are expected to consume 99 billion gallons of fuel in 2024. The aviation industry is increasingly focusing on Sustainable Aviation Fuels (SAF) and carbon credits to reduce its carbon footprint.

Industry CO2 emissions in 2024 are expected to be 939 million tonnes from the consumption of 99 billion gallons of fuel. SAF production is estimated to rise to 0.53% of airlines’ total fuel consumption in 2024, adding $2.4bn to next year’s fuel bill. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is estimated to incur costs of $1 billion in 2024.

Regional roundup

At the regional level, North America, Europe, and the Middle East are expected to post net profits in 2023, with Asia Pacific joining the group in 2024.

However, Latin America and Africa are expected to face challenges, remaining in the red in 2024.

Global economic factors and risks

Global economic developments, wars, supply chain issues, and regulatory risks pose potential risks to industry profitability.

The aviation industry’s recovery is commendable, says Walsh, yet challenges persist, and profitability remains below average. Addressing regulatory burdens, infrastructure costs, and supply chain challenges will be critical for sustained resilience in this vital global industry.

Source:Bizcommunity.

CORPORATE TRAVEL IS BACK IN BUSINESS. BUT WHAT’S CHANGED?

Since the pandemic ended, there’s been lots of speculation about the future of traveling for work. But in 2022,according to GBTA, global business travel expenditure increased by 47%, topping over one trillion US dollars. And that growth shows no signs of stopping. Spending is predicted to recover to pre-pandemic levels by the end of 2024 — faster than the previously projected mid-2026 forecast.

Why? First and foremost, because business travel is a logistical necessity for many people, like sales reps, client service managers, consultants, conferences and events staff, construction workers, circus folk etc. For these folks, being on the road is part and parcel of their role, and it’s budgeted for even more in the most uncertain of economic climates. Because nothing beats being face-to-face time with customers. And the others? They travel because their organizations want them to, remaining steadfast in the belief that meeting in person drives performance and growth. What might surprise you is to hear that almost nine out of ten (87%) of business travelers agree with them.

87% of employees think business travel is important to company growth.

Source: Uber and GBTA report

Nonetheless, many companies are still struggling to get employees moving, and that’s because many are still working from home. In fact, by 2025 it’s projected that 32.6 million US employees will be remote workers. Since that changes the very nature of what ‘work’ looks like, there are also knock-on consequences for business travel, too.

Balancing what everyone wants and needs is a delicate act, and many companies are turning to TMCs to help them do it. So here are six key things you need to know in 2024.

Source: Travelport